Renzo Raises $17 Million to Expand Crypto Restaking Services

Renzo Raises $17 Million to Expand Crypto Restaking Services

StakingCrypto Firm

By Jakub Lazurek

19 Jun 2024 (22 days ago)

2 min read

Share:

Renzo secures $17 million from Galaxy Ventures and Brevan Howard Digital Nova to expand restaking services and integrate ERC-20 tokens.

Renzo has raised $17 million in a two-part fundraising led by Galaxy Ventures and Brevan Howard Digital Nova. This investment will expand Renzo’s restaking services and support ERC-20 tokens, a significant move in the growing $14.145 billion restaking industry.

Renzo’s recent funding success includes $17 million from Galaxy Ventures and Brevan Howard Digital Nova Fund. The funds will enhance Renzo’s restaking services, particularly by integrating ERC-20 tokens.

Renzo is described as a “liquid derivative platform” on the EigenLayer protocol. It acts as an interface to EigenLayer, securing Application Verification Services (AVS) while providing higher yields than Ethereum. For each ETH or liquid staking token deposited, Renzo mints an equivalent amount of ezETH, its liquid restaking token. This funding will help Renzo integrate ERC-20 tokens into its protocol, following the trend in restaking.

EigenLayer recently announced that it will accept its native EIGEN token, an ERC-20, for securing EigenDA. This allows users to deposit EIGEN tokens onto EigenLayer, delegating to the same operator as their restaked ETH. The expansion of native ETH restaking into other assets like EIGEN opens the door for other liquid restaking tokens to join ezETH. This diversification is crucial for the restaking market.

According to DefiLlama, the liquid restaking space has a total value locked (TVL) of $14.145 billion. Renzo is the second-largest liquid restaking protocol with a TVL of $3.614 billion, following Ether.fi at $6.1 billion. Renzo’s TVL has increased by 13% in the last month, indicating its growing influence.

Renzo’s plans to enhance its services on EigenLayer come amid rising competition. Symbiotic, a new competitor, raised $5.8 million in seed funding from Paradigm and Cyber Fund. Symbiotic offers flexible, permissionless restaking options, challenging EigenLayer's dominance. While EigenLayer only accepts ETH, EIGEN, and a few ETH derivatives, Symbiotic accepts any ERC-20 token, giving it a competitive edge.

Renzo’s new funding could bolster EigenLayer against the rising competition. Integrating ERC-20 tokens into Renzo’s protocol will likely attract more users and strengthen its market presence. As the restaking industry evolves, these strategic moves will shape its future.

In summary, Renzo’s $17 million funding from Galaxy Ventures and Brevan Howard Digital Nova is a pivotal moment for the company. The funds will expand Renzo’s restaking services and integrate ERC-20 tokens into its protocol. This development reflects the broader trend in the growing restaking industry, which is seeing increased competition and innovation. Renzo’s strategic initiatives position it as a key player in this dynamic market.

ShareFacebookTelegram
Go back to All News
Previous article

SEC Ends Ethereum Probe, Declares No Action Needed

SEC Ends Ethereum Probe, Declares No Action Needed
Next article

Taiwanese Man Faces Charges for Betting on Presidential Election

Taiwanese Man Faces Charges for Betting on Presidential Election