Binance Labs Invests in Ethereum Liquid Restaking Protocol Renzo
Binance Labs, the venture capital and incubation arm of crypto exchange Binance, has made an undisclosed investment in Renzo, an Ethereum liquid restaking protocol developed by EigenLayer. This comes after Renzo recently raised $3.2 million in a seed funding round. Binance Labs’ investment follows the same structure as the seed round, offering equity with token warrant in a 1:1 ratio.
Renzo and Puffer Finance Lead the Ethereum Restaking Space
This is Binance Labs’ second recent investment in the Ethereum restaking sector. Last month, they invested in Puffer Finance, which has become the second-largest liquid restaking protocol since its launch on February 1. Puffer currently holds over $1 billion in locked assets, while Renzo ranks as the fourth-largest protocol with over $375 million locked.
The Rise of Ethereum Liquid Restaking
Ethereum liquid restaking is a rapidly growing area in crypto, with billions of dollars being poured into this vertical. The trend began with EigenLayer’s introduction of a restaking system to Ethereum last year. Currently, EigenLayer-based protocols like Renzo and Puffer have accumulated over $3.5 billion worth of assets.
Native ETH Restaking on BNB Chain
With Binance Labs’ investment, Renzo plans to launch native ETH restaking on BNB Chain through its partnership with cross-chain protocol Connext. This means that BNB Chain users will be able to directly restake ETH for Renzo’s liquid restaking token called ezETH without the need for bridging. Rewards will be given in EigenLayer points and Renzo’s ezpoints, which encourage user engagement without being directly tradable or valuable.
Renzo also accepts deposits of wBETH and Lido’s stETH in addition to native ETH for restaking, and they are focused on building new restaking integrations for BNB Chain users. The protocol is currently live in a mainnet beta, with the general mainnet launch expected after EigenLayer’s Stage 3 launch.
Hot Take: Unlocking Liquidity and Maximizing Capital Efficiency
Liquid restaking protocols like Renzo play a crucial role in unlocking liquidity and maximizing capital efficiency for users. These protocols simplify the process and abstract technical complexities, making it easier for crypto enthusiasts to engage in restaking activities. With the investment from Binance Labs, Renzo is set to further expand its reach and provide more opportunities for users to participate in Ethereum liquid restaking.
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