Binance Labs, the venture capital arm of Binance, has recently invested in Renzo, a liquid restaking token (LRT) also known as the Light Rail Transit. This investment was announced on the same day as a $100 million investment by venture capital firm a16z in EigenLayer, a software company and Ethereum restaking protocol. EigenLayer currently has a total value locked (TVL) of $7.8 billion as of February 22, 2024.
The goal of Binance Labs is to increase the number of people able to participate in the liquid restaking space. The Renzo protocol serves as a hub for collaboration between various ecosystem players in EigenLayer. This project aims to assist node operators, stakeholders, and Actively Validated Services (AVS) by providing a standardized risk management and shared security environment.
Co-founder and head of Binance Labs, Yi He, stated in a public statement, “Renzo’s technology addresses the complexities of Liquid Restaking, enabling more users to participate in this sector. At Binance Labs, we are always seeking innovative DeFi projects that introduce novel use cases, and we look forward to witnessing Renzo’s growth in the liquid restaking sector.”
The Renzo protocol supports restaking of native ETH as well as LST tokens like staked ETH or wrapped Beacon ETH (wBETH). Users can deposit LST or ETH and receive ezETH, a liquid restaking token that represents their restaked position. This includes all possible yields and incentives.
To improve the effectiveness of the user’s restaked position, they can also participate in the Renzo protocol. This allows for the implementation of various strategies for optimizing yield and managing risk.
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