[Serenity Premium] Renzo and Its Yield On Different Chains [Initial Review Apr 2024]
Restaking has been a hot concept recently. Following the successful token launch by EtherFi, the industry is enthusiastic about the potential of restaking service providers. Amongst many, Renzo is one the largest with over $3 billion TVL.
According to DefiLlama, Renzo is the second largest restaking service provider.
Basics Of Renzo
Renzo's standard service is similar to EtherFi. Renzo helps users to automatically stake ETH and ETH liquid staking derivatives into Eigen Layer. For information on Eigen Layer, please refer to our earlier article: Eigen Layer and EtherFi. Currently, Renzo only supports the restaking of ETH, and Binance staked ETH (wBETH) and Lido Staked ETH (stETH). Users will receive ezETH as receipts. ezETH cannot be withdrawn and can only be traded with ETH in DEXes; its largest pool is Balancer's ezETH-WETH, with 21k ezETH/ETH inside.
However, what makes Renzo different is its coverage of different chains: it's available on 7 chains, namely Ethereum, Arbitrum, Binance Chain, Base Chain, Mode, Linea and Blast. And soon it will support OKX's X Layer.
There're are bridges for Renzon, such as Connext. Whilst the protocol supports Blast, one has to bridge ETH to Blast and then buy ezETH, so the price of Blast ezETH might be different depending on the liquidity situation.
There's a comprehensive dashboard on Dune with lots of details on Renzo protocol, and some of its liquidity pools. https://dune.com/maybeYonas/renzo-protocol
Renzo also has a strong portfolio of investors, including Binance.
Renzo Points
Similar to EtherFi, Renzo offers a point system to attract liquidity. ezETH holders receive 1 Renzo ezPoint per hour for every ezETH they hold, regardless of chain. Extra incentives are given to earlier supporters for the first 25k ETH (now there's 970k ETH in Renzo).
Providing liquidity in DEX or Pendle will be incentivised as well at 2X. For active incentives for DeFi protocols, please refer to the official websites and periodical announcements.
There's a market for Renzo points on Whales Market, but the volume was little and the price might not be meaningful.
DeFi Yield Opportunity on ezETH
As Renzo and ezETH is on several chains, the yields can be very different. Here we try to analyze the yields of some of its most common forms per its official list.
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