Protocol Deep Dive
Renzo ezETH
Renzo is the second-largest liquid restaking protocol by TVL, operating as the restaking interface for the EigenLayer ecosystem. It deposits ETH into EigenLayer across a curated set of Actively Validated Services (AVSs), mints ezETH as a liquid receipt, and automatically accrues staking + restaking rewards to ezETH holders via a dynamic exchange rate.
Token
ezETH
Value-accruing
TVL
$3.1B
2nd largest LRT
APY
4.1%
Avg restaking yield
AVSs
9
Actively supported
ezETH Mint/Burn Flow
Watch how ETH becomes ezETH and vice versa. The 1:1 backing model means every ezETH is backed by ETH held in the Renzo vault.
Mint (Deposit ETH -> Receive ezETH) Burn (Redeem ezETH -> Receive ETH)
? How Renzo Works - Step by Step
1
Deposit ETH
User sends ETH to Renzo vault
->
2
Mint ezETH
Renzo mints ezETH 1:1 backed
->
3
EigenLayer Staking
ETH delegated to AVS operators
->
4
Rewards Accrue
APY increases ezETH/ETH rate
->
5
Use in DeFi
ezETH as collateral or LP
Tokenomics
| Parameter | Value | Notes |
|---|---|---|
| Native Token | REZ | In development |
| Fee Model | 10% | of restaking rewards |
| Mint/Burn | 1:1 | ETH backing ratio |
| Redeem | 7-10 days | Beacon chain queue |
| Points Program | Active | EigenLayer points accrue to ezETH holders |
| AVS Count | 9 Active | Growing as new AVSs onboard |
? Supported AVSs
Renzo stakes ETH across these Actively Validated Services. Each AVS earns restaking rewards that compound into the ezETH exchange rate.
EigenDA
Data availability layer
TVL: ~$2B
Helena Network
AI compute AVS
TVL: Growing
Witness Chain
Restaking Data Layer
TVL: Active
Data Hive
Decentralized storage
TVL: Active
+ more AVSs onboarding
ezETH Yield Breakdown
Base Staking (~3.2%) EL Restaking (~0.5%) AVS Rewards (~0.4%)
? ezETH vs Other LRTs
OK Renzo Advantages
- 2nd largest LRT by TVL - battle tested
- Supports 9 AVSs - good diversification
- Value-accruing token - no manual claiming
- Competitive APY at 4.1%
- EigenLayer points for future airdrop
X Renzo Considerations
- 10% fee on rewards (higher than Puffer)
- No native slashing insurance yet
- REZ token not yet launched - unknown tokenomics
- 7-10 day withdrawal queue
- Smaller ecosystem than EtherFi
When ezETH Makes Sense
DeFi Yield Farmers
Use ezETH as collateral in lending protocols to maximize yield while maintaining liquidity
?
Long-Term ETH Holders
Want to earn restaking rewards without locking ETH - hold ezETH in the meantime
Point Chasers
Accumulating EigenLayer points ahead of potential REZ token airdrop