Quick take:
- Renzo offers an Actively Validated Service powered by EigenLayer that leverages staked ETH to secure other protocols on the Ethereum network.
- The restaked ETH generates yield for users who then receive Renzo’s liquid restaking token ezETH.
- The company will use the funds to expand restaking services on EigenLayer including adding support for ERC-20 tokens.
Renzo has announced a $17 million fundraising secured across two rounds. The EigenLayer-based liquid restaking protocol said Galaxy Ventures led the first round, while Brevan Howard Digital Nova Fund led the second, CoinDesk reported.
Earlier this year, Renzo also raised $3.2 million in a seed round led by Maven11 Capital, according to a post on X.
The company also enjoys backing from other leading Web3 VCs including SevenX Ventures, IOSG Ventures, OKX Ventures, and Robot Ventures among others.
Renzo plans to use the latest funding to expand its liquid restaking services including adding support for ERC-20 tokens.
The company currently offers Actively Validated Services (AVS) powered by EigenLayer, which allows it to leverage staked ETH to secure other protocols on the Ethereum network.
Stakers receive Renzo’s liquid restaking token ezETH, earning yield from their restaked ETH.
According to Lucas Kozinski, founding contributor of Renzo, the company is simply pouncing on an emerging trend in the Web3 industry with crypto restaking protocols also now beginning to build on the Bitcoin ecosystem.
“EigenLayer pioneered native ETH restaking, which is now expanding into other assets including $EIGEN to secure EigenDA,” Kozinkski told CoinDesk. “The use of ERC-20s for restaking is opening the door for other liquid restaking tokens to join alongside ezETH.”
According to the on-chain DeFi protocol tracking platform DeFiLlama, EigenLayer, which powers most crypto restaking protocols on Ethereum has since surpassed $18 billion TVL following its mainnet launch earlier this year.
On the other hand, Renzo had just over $3.58 billion TVL in restaked ETH, as of June 18, 2024.
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