What is Renzo Restaked ETH (ezETH)?

Quick Facts

• Token: ezETH — Renzo's Liquid Restaking Token (LRT)
• Underlying protocol: Renzo Protocol, built on EigenLayer
• Deposit assets: Native ETH or LSTs like stETH and wBETH
• Reward type: Auto-compounding staking and restaking rewards
• Protocol fee: 10% on restaking rewards generated
• Chains supported: Ethereum, Arbitrum, Base, BNB Smart Chain, Blast, Linea, and more
• Governance token: REZ (separate from ezETH)

Introduction

Renzo Restaked ETH (ezETH) is the liquid restaking token (LRT) issued by the Renzo Protocol. When users deposit ETH or liquid staking tokens into Renzo, they receive ezETH in return — a transferable, yield-bearing token that represents their restaked position.

Unlike traditional staking, ezETH remains liquid and composable, allowing holders to continue participating in DeFi while earning layered rewards.

History & Background

Renzo Protocol launched as a strategy manager and LRT issuer built on top of EigenLayer, the Ethereum restaking primitive. The protocol was designed to abstract away the complexity of selecting EigenLayer operators and Actively Validated Services (AVSs), making restaking accessible to everyday ETH holders.

The project saw explosive growth in 2024, reaching a peak of over 1 million ETH in deposits. A notable depeg event occurred in April 2024, when ezETH briefly traded below its ETH peg on secondary markets following a points-program transition — an event that highlighted liquidity risks inherent to LRTs.

How Renzo Restaked ETH Works

Users deposit native ETH or supported LSTs into Renzo. The protocol stakes this ETH with Ethereum validators and simultaneously restakes it through EigenLayer, directing it to secure various AVSs such as EigenDA, eoracle, and Witness Chain.

In return, users receive ezETH — a reward-bearing token similar to cTokens in design. Staking and restaking rewards are auto-compounded directly into ezETH's value, meaning its exchange rate against ETH increases over time rather than distributing separate reward tokens. Withdrawals on Ethereum mainnet are enabled, though unstaking can take up to 14 days due to EigenLayer's unbonding requirements.

Tokenomics

ezETH is minted on-demand when users deposit assets into Renzo — there is no pre-mine or fixed issuance schedule. Its value is designed to appreciate relative to ETH as rewards accumulate. Renzo charges a 10% fee on restaking rewards and passes 100% of EigenLayer rewards directly to ezETH holders. The protocol's separate governance token, REZ, handles voting on operator selection, AVS whitelisting, and risk parameters.

Ecosystem & Use Cases

ezETH is deeply integrated across the DeFi ecosystem. Key use cases include:

• Collateral: Use ezETH as collateral on platforms like Aave, Morpho Blue, and Spark
• Yield splitting: Integrate with Pendle Finance to separate principal and yield tokens
• Liquidity provision: Trade or provide liquidity on Uniswap V3 and Balancer
• Multi-chain access: Available natively on Arbitrum, Base, BNB Smart Chain, Blast, Linea, and Unichain

Team, Governance & Community

Renzo Protocol is governed through its REZ token, which gives holders a say in risk management, operator and AVS selection, and protocol upgrades. The protocol's governance framework is explicitly tied to controlling concentration limits and maintaining a curated whitelist of operators — a design choice aimed at managing systemic risk.

The community engages primarily through Discord and Twitter/X under the handle @RenzoProtocol.

Advantages

• Dual yield sources: ezETH earns both Ethereum validator rewards and EigenLayer AVS incentives
• Auto-compounding: Rewards are reinvested automatically, growing ezETH's value over time
• Liquidity preserved: Unlike locked staking, ezETH can be freely traded or used as collateral
• Simplified restaking: Renzo handles operator selection and AVS management on behalf of users
• Multi-chain availability: Accessible across multiple L2s without bridging to Ethereum mainnet

Risks & Challenges

• Depeg risk: ezETH trades on secondary markets and can temporarily lose its ETH peg during high sell pressure
• Slashing exposure: Restaking through AVSs introduces additional slashing surfaces beyond standard Ethereum staking
• Smart contract risk: The protocol relies on multiple interacting contracts, each a potential vulnerability surface
• Withdrawal delays: Unstaking can take up to 14 days, limiting immediate liquidity in stress scenarios
• Leverage liquidations: Use of ezETH as collateral in leveraged loops amplifies losses during depeg events

Long-Term Vision

Renzo positions itself as a broad infrastructure provider for the onchain economy, extending beyond ezETH into enterprise vaults, institutional asset strategies, and multi-chain restaking. The introduction of ezREZ — allowing restaking of the REZ governance token itself — signals ambitions to build a full restaking and staking suite. As EigenLayer's AVS ecosystem matures and more services demand decentralized security, ezETH is designed to serve as a key source of that cryptoeconomic security while rewarding holders with sustainable, diversified yield.