Renzo Raises $17 Million: Restaking ERC-20 for New Network Security

Bittime - Renzo restaking protocol has just announced raising $17 million through two rounds of funding. Galaxy Ventures led the first round, while Brevan Howard Digital Nova Fund was the lead sponsor of the second round. The fresh funds will be used to expand restaking, including adding support for Ethereum-based crypto assets, ERC-20.

Renzo: Leveraging ETH for Other Network Security

Renzo belongs to a new generation of “restaking” protocols built on EigenLayer . This protocol allows users to utilize their previously staked (deposited) Ether (ETH) tokens as security collateral on the Ethereum network. The staked ETH can then be reused to secure other networks, known as “actively validated services” (AVSs).

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Renzo Is More Than Just Restaking ETH

According to Renzo's documentation, they not only function as a restaking protocol, but also as a “liquid derivatives platform built on EigenLayer”. Renzo acts as an interface to the EigenLayer ecosystem by securing AVS and offering higher yields than regular ETH staking. The documentation explains, "For every liquid staking token or ETH deposited in Renzo, the system will mint the same amount of Renzo liquid staking tokens, ezETH."

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New Trend: Retaking ERC-20 Assets

The latest trend in restaking is support for ERC-20 assets, crypto tokens built on the Ethereum network. Previously, EigenLayer announced it would begin accepting their own ERC-20 token, EIGEN, to secure their in-house AVS, EigenDA. Renzo's restaking competitor, Symbiotic, also announced support for Ethena Labs' ERC-20 tokens $ENA and $USDe.

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Retaking Towards a Wider Future

Lucas Kozinski, founder of Renzo, said in an interview on Telegram that this trend is becoming more widespread. Retaking is not only focused on Ethereum assets, but is also starting to spread to the Bitcoin ecosystem and non-EVM (Ethereum Virtual Machine) blockchains.

“EigenLayer pioneered the original ETH restaking, which is now expanding to other assets including $EIGEN to secure EigenDA,” Kozinski told CoinDesk. "The use of ERC-20 assets for restaking opens the door for other liquid restaking tokens to join $ezETH."

This funding announcement comes two months after Renzo held an airdrop for their $REZ token, where 9.5% was distributed to the community. The total allocation to communities reaches 32%.

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