Crypto enterprise capital agency Binance Labs has disclosed an funding in Renzo, the interface to the EigenLayer ecosystem.
In response to an announcement on Feb. 22, Binance Labs is becoming a member of a gaggle of enterprise corporations and crypto ecosystems that invested $3.2 million within the startup seed spherical in January. Binance’s funding within the startup has not been revealed.
Renzo affords Ethereum good contracts that facilitate communication between stakers, node operators and actively validated companies (AVSs). In different phrases, it permits customers to restake belongings, delegate them to node operators, and work together with on-chain service modules, in line with the corporate.
An actively validated service is usually a protocol or service within the EigenLayer ecosystem, which relies on Ethereum’s validation stake mannequin however has its personal validating semantics. Much like Ethereum, AVSs additionally provide token rewards to draw customers and node operators. The protocol claims to supply a better yield than Ether (ETH) staking.
1/ Renzo, @eigenlayer Liquid Restaking Hub, is proud to announce a $3.2M seed spherical led by @Maven11Capital with participation from @FigmentCapital @SevenXVentures @IOSGVC @bodhi_ventures @OKX_Ventures @0xMantleEco @robotventures @Papervc @ProtagonistXYZ @edessacap… pic.twitter.com/5XOuqIve2z
— Renzo (@RenzoProtocol) January 15, 2024
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The restaking course of includes depositing ETH or liquid staking tokens (LST), similar to stETH. In change, customers obtain an equal quantity of ezETH, the liquid restaking token representing the restaked place at Renzo.
For customers, dangers are much like these already introduced in staking companies, similar to publicity to good contract vulnerabilities, governance dangers and the chance of loss from value fluctuations in underlying belongings, making it unsuitable for traders with a low-risk tolerance.
Binance’s transfer into Renzo comes on the identical day as VC agency Andreessen Horowitz (a16z) introduced one other $100 million in funding for EigenLayer. In response to a Bloomberg report, a16z was the one investor within the spherical. Final March, the protocol accomplished a $50-million funding spherical led by Blockchain Capital.
EigenLayer is now Ethereum’s third-largest protocol, holding a complete worth locked of $7.91 billion, a 347% enhance from the earlier month, in line with DefiLlama information.
Journal: Ethereum restaking: Blockchain innovation or harmful home of playing cards?
