Business News Report
March 01, 2024

Renzo Partners with Connext to Launch Cross-Chain Restaking Natively on Arbitrum

In Brief

Renzo partnered with Connext to launch cross-chain restaking on Arbitrum and engage more users in restaking, enhancing network liquidity.

Restaking Protocol Renzo Collaborates with Connext to Launch Cross-Chain Restaking Natively on Arbitrum

Liquid restaking protocol and strategy manager for EigenLayer, Renzo collaborated with the interoperability protocol Connext to launch cross-chain restaking on Arbitrum, a Layer 2 scaling solution on Ethereum (ETH). The joint initiative aims to broaden users’ participation on Arbitrum in restaking and enhancing network liquidity.

Renzo users will now be able to engage in native restaking of ETH on the Arbitrum network, with the restake option further expanding to other Layer 2 networks, including BNB Chain, Linea and Base. The integration facilitates restaking at a reduced cost, leveraging the lower fees offered by rollup technology. That opens up an opportunity for a broader user base to restake and unstake assets directly with the supported Layer 2 platform.

Furthermore, Connext’s xERC20 token standard will facilitate Liquid Restaking Tokens (LRT) transactions across chains with high, customizable security. 

“Renzo’s partnership with Connext represents the first true cross-chain native restaking with rollups. The goal is to align incentives and allow EigenLayer actively validated services (AVS) to be secured by ETH from the same ecosystems that use EigenLayer,” said Lucas Kozinski, Founding Contributor to Renzo.

Through the collaborations with Layer 2 networks, Renzo will expand restaking primitives to Layer 2 decentralized finance (DeFi) ecosystems, deepening liquidity and greater capital efficiency, allowing Ethereum restakers to contribute to network security and explore additional opportunities.

Users depositing ETH into Renzo’s staking smart contracts will mint ezETH, with the deposited ETH subsequently restaked using Renzo’s native restaking module. To power this process, EigenLayer will leverage Connext’s bridging and message-passing protocol alongside the xERC20 token standard, a cross-chain ERC20s that can be transferred, eliminating issues such as slippage, liquidity fragmentation, or security compromises.

Renzo Expands Influence Amid Surge in Restaking  

Founded in 2023, Renzo serves as an interface to the EigenLayer ecosystem, ensuring the security of Actively Validated Services (AVS) and offering a higher yield compared to ETH staking. Since its beta mainnet launch a few months ago, Renzo’s Total Value Locked (TVL) has already exceeded $600 million.

Recently, Renzo raised an undisclosed investment from Binance Labs, the venture capital arm of the crypto exchange Binance, following the closure of its $3.2 million seed funding round at a valuation of $25 million earlier in the year. 

The Ethereum liquid restaking domain has become a prominent sector in the cryptocurrency landscape over the recent months, witnessing substantial investments amounting to billions of dollars. This trend began with EigenLayer’s introduction of a restaking system to Ethereum last year. As of now, EigenLayer’s TVL exceeds $9.8 billion, according to DeFiLlama data.

Renzo’s recent collaboration with Connext signals a noteworthy advancement in restaking, setting the stage for enhanced security and liquidity, and contributing to the development of DeFi.

“Renzo’s work developing restaking standards across Layer 2 networks is unparalleled and now has the power of Connext’s Restake From Anywhere module backing it, eliminating fragmentation and ensuring a seamless experience for users,” said Arjun Bhuptani, founder of Connext. “Now, no matter where users decide to transact, they have access to natively integrated staking for ETH without ever leaving the network.”

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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