Renzo partners with Connext to launch native cross-chain re-staking on Arbitrum.
Posted: March 1, 2024 11:27 AM Updated: March 1, 2024 11:29 AM
Correction and fact check date: March 1, 2024, 11:27 AM
briefly
Renzo partnered with Connext to launch cross-chain re-staking on Arbitrum and improve network liquidity by engaging more users in re-staking.
Renzo, EigenLayer’s Liquid retake protocol and strategy manager, has teamed up with interoperability protocol Connext to launch cross-chain restaking on Arbitrum, a layer 2 scaling solution for Ethereum (ETH). The joint initiative aims to expand user participation in Arbitrum and improve network liquidity.
Renzo users can now participate in native re-staking of ETH on the Arbitrum network, and re-staking options are further expanded to other layer 2 networks, including BNB chains, Linea, and Base. The integration allows for low-cost re-staking by taking advantage of the low fees provided by roll-up technology. This opens up the opportunity for a wider user base to re-stake and un-stake assets directly through supported layer 2 platforms.
Additionally, Connext’s xERC20 token standard facilitates Liquid Restake Token (LRT) transactions across chains with a high level of customizable security.
“Renzo’s partnership with Connext marks the first truly cross-chain native re-staking through rollups. The goal is to align incentives and enable EigenLayer Actively Verified Services (AVS) to be secured over ETH in the same ecosystem that uses EigenLayer,” said Lucas Kozinski, founding contributor at Renzo.
Through collaboration with Layer 2 networks, Renzo will extend restaking primitives to the Layer 2 decentralized finance (DeFi) ecosystem, deepening liquidity and increasing capital efficiency, allowing Ethereum reinvestors to contribute to network security and explore additional opportunities. We will make sure to do so.
Users who deposit ETH into Renzo’s staking smart contract will mint ezETH, and the deposited ETH will then be re-staked using Renzo’s native re-staking module. To power this process, EigenLayer leverages Connext’s bridging and message passing protocols along with the xERC20 token standard, a transportable cross-chain ERC20, eliminating issues such as slippage, liquidity fragmentation, or security compromises.
Renzo expands influence amid surge in re-staking
Founded in 2023, Renzo acts as an interface to the EigenLayer ecosystem, ensuring the security of Actively Validated Services (AVS) and providing higher returns compared to ETH staking. Since the beta mainnet launch a few months ago, Renzo’s Total Value Locked (TVL) has already exceeded $600 million.
Renzo recently raised an undisclosed investment from Binance Labs, the venture capital arm of cryptocurrency exchange Binance, after closing a $3.2 million seed funding round at a valuation of $25 million earlier this year.
The Ethereum liquidity re-staking domain has become a prominent sector in the cryptocurrency landscape in recent months and has witnessed significant investments worth billions of dollars. This trend started last year when EigenLayer introduced a re-staking system to Ethereum. According to DeFiLlama data, EigenLayer’s TVL currently exceeds $9.8 billion.
The recent collaboration between Renzo and Connext represents a notable advancement in the field of re-staking, laying the foundation for enhanced security and liquidity and contributing to the development of DeFi.
“Renzo’s work developing a restake standard across Layer 2 networks is unparalleled, and now the power of Connext’s Restake From Anywhere module supports it, eliminating fragmentation and ensuring user privacy,” said Arjun Bhuptani, founder of Connext. We ensure a seamless experience for you.” “Now, no matter where users decide to trade, they can access natively integrated ETH staking without ever leaving the network.”
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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