Renzo, one of the key players in the liquidity staking space, announced that it has raised $17 million in two fundraising events.
This fundraising was designed to expand the influence of Renzo, a leader in Ethereum's Eigen layer, in the growing ReStake sector.
Renzo Raises $17 Million from Galaxy and Digital Nova
Renzo successfully raised $17 million through two rounds of fundraising. The first round was led by Galaxy Ventures , and the second round was led by Brevan Howard Digital Nova Fund. These funds will be allocated to expanding Renzo's ReStake service, which includes integrating ERC-20 tokens into the protocol.
The project whitepaper describes Renzo as a “liquidity derivatives platform” built on top of the Eigenlayer Protocol. In particular, Renzo effectively protects AVS by serving as an interface to the AIgen layer while providing higher returns than Ethereum.
“For every liquidity staking token or Ethereum deposited in Renzo, Renzo mines a corresponding amount of ezETH, Renzo’s liquidity restaking token,” reads an excerpt from the whitepaper .
Read more: Ethereum Restake: What is Restake and How Does It Work?
As mentioned above, Renzo's $17 million in fundraising will help Restake integrate the emerging trend of ERC-20 tokens into the protocol. Eisenlayer recently shared plans to receive EIGEN tokens, a native ERC-20 token, to secure its own AVS, Eisenda.
“You will soon be able to deposit EIGEN tokens into EIGEN Layer! If you have already staked your Ethereum and delegated it to an EIGEN operator, when you stake EIGEN in the web app, it will automatically be delegated to the same operator,” blockchain infrastructure provider Luganodes reported .
In particular, native Ethereum ReStake is the idea of the Eigen layer, and has now been expanded to other assets, including Eisen, to secure Eigen DA. ERC-20, which entered the restake stage, has set the stage for other liquid restake tokens to participate along with ezETH.
The Restake battlefield is taking shape
According to DeFiRama data, the total deposited volume (TVL) of the restake market reaches $14.145 billion. The TVL indicator, which measures the overall activity and popularity of DeFi projects, saw intensified growth in 2024.
Renzo is the second most liquid restaking protocol with a TVL of $3.614 billion, following EtherFi with $6.1 billion. According to the data, Renzo's TVL rose 13% in one month.
Read more: 9 Best Places to Stake Ethereum in 2024
As Renzo plans to expand his services on the Eigen Layer, the Restake battlefield is shaping up. A recent competitor in this space, Symbiotic, debuted with $5.8 million in seed funding from Paradigm and Cyberfund.
The protocol aims to provide a flexible, permissionless restaking option, and its debut was a significant challenge for Eigenreyer. Eigenlayer only accepts Ethereum, Eisen, and a few Ethereum derivatives. Symbiotic, on the other hand, accepts all cryptocurrency assets based on Ethereum's ERC-20 token standard. Symbiotic has the support of Paradigm , a Lido DAO supporter, making it even more competitive.
Now, with Renzo's latest funding, the Eigenreyer Protocol has the fortification it needs to withstand fierce competition.
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