Binance Labs Invests in Ethereum Liquid Restaking Protocol Renzo

Binance Labs, the venture capital arm of major crypto exchange Binance, has invested in Renzo, an Ethereum liquid restaking protocol based on EigenLayer.

Key Takeaways:

• Binance Labs invested an undisclosed amount in Renzo, mirroring the structure of its previous seed round.
• Renzo is the fourth-largest liquid restaking protocol with over $375 million locked, trailing only Puffer Finance among EigenLayer-based protocols.
• The investment highlights the growing importance of liquid restaking in unlocking liquidity and maximizing capital efficiency within Ethereum.
• Renzo plans to leverage its new funding to launch native ETH restaking on BNB Chain via Connext, offering BNB Chain users direct access to ezETH (Renzo’s liquid staking token) and rewards.

Binance Labs Continues to Back Ethereum Liquid Restaking (Renzo)

Binance Labs, the venture capital and incubation arm of Binance, has announced an investment in Renzo, an Ethereum liquid restaking protocol built on EigenLayer. This investment comes shortly after the firm’s support for Puffer Finance, another player in the increasingly competitive liquid restaking space on Ethereum.

The exact amount invested in Renzo remains undisclosed, but its structure mirrors the previous seed round, offering equity alongside a 1:1 token warrant. With over $375 million locked in its protocol, Renzo currently occupies the fourth position among liquid restaking protocols, behind only Puffer Finance among EigenLayer-based solutions.

Unlocking Liquidity and Maximizing Capital Efficiency

Liquid restaking protocols like Renzo are gaining significant traction within the Ethereum ecosystem, attracting billions of dollars in investments. This trend largely stems from their ability to unlock liquidity and maximize capital efficiency for users. By allowing users to participate in staking while retaining liquidity through tradable tokens, these protocols offer attractive benefits over traditional staking methods.

Yi He, co-founder of Binance and head of Binance Labs, emphasized this point in a statement, highlighting the critical role liquid restaking plays in “unlocking liquidity and maximizing capital efficiency, while also abstracting technical complexities for users.”

Renzo ‘s Plans for the Future (Binance Labs)

With fresh capital from Binance Labs, Renzo is gearing up for further expansion. The protocol plans to launch native ETH restaking on BNB Chain through a recent partnership with Connext, a cross-chain protocol. This integration will enable BNB Chain users to directly restake ETH for ezETH (Renzo’s liquid staking token) without needing to bridge assets and gain rewards in both EigenLayer points and Renzo’s ezpoints (non-tradable loyalty points).

Beyond wBETH (Binance’s liquid staking token) deposits already accepted for restaking, Renzo plans to continue building new integrations specifically targeting BNB Chain users. Additionally, the protocol accepts Lido’s stETH for restaking alongside native ETH.

Currently operating in a mainnet beta, Renzo anticipates a full mainnet launch after EigenLayer’s Stage 3 goes live. The project counts Maven11, Figment Capital, SevenX Ventures, IOSG Ventures, and OKX Ventures among its other investors.

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