What is Renzo Protocol (REZ)?
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🟢 The simple version
Plain English — no jargon. Start here.
Renzo Protocol is a liquid restaking protocol where you deposit ETH and receive ezETH — a token earning both Ethereum staking and EigenLayer restaking rewards — and REZ is the governance token that controls how Renzo manages its AVS portfolio and the protocol's fee structure.
Renzo's position in the LRT landscape
The liquid restaking token (LRT) category emerged in 2023-2024 around EigenLayer, with multiple protocols competing for ETH deposits. Renzo was one of the early entrants and grew rapidly through its points programme — users earned Renzo points (later convertible to REZ) by depositing early. This points-driven growth strategy was common across the LRT sector and created significant demand before REZ launched.
Renzo's primary product is ezETH — deposit ETH or LSTs (stETH, rETH), receive ezETH that automatically participates in EigenLayer restaking. Renzo manages the selection of which EigenLayer AVSes (Actively Validated Services) to restake to, aiming to optimise the yield-to-risk ratio for depositors.
The April 2024 ezETH depeg — documented
In April 2024, shortly after REZ token launched, ezETH depegged significantly from ETH — trading at a discount of several percent for a period. The cause: REZ airdrop distribution created selling pressure on REZ, which coincided with uncertainty about EigenLayer's points-to-token conversion. Users who had deposited into Renzo primarily to farm points began withdrawing, and secondary market selling of ezETH pushed its price below parity with ETH. The peg eventually recovered, but the episode highlighted depeg risk in LRT tokens, particularly during token generation events.
Is REZ legal in India?
Yes. REZ qualifies as a Virtual Digital Asset (VDA) under Indian law. 30% tax on gains and 1% TDS applies. Always consult a tax professional.
🟡 A bit more detail
For when you want to go a little deeper.
How Renzo manages AVS selection
EigenLayer has many AVSes — oracle networks, bridges, rollups — each with different yield rates and slashing conditions. Renzo's risk committee selects which AVSes to opt into on behalf of all ezETH depositors. This is an active management function: Renzo analyses each AVS's audit history, slashing parameters, and expected yield, and diversifies across AVSes rather than concentrating in one. Depositors don't individually choose AVS exposure — they delegate this to Renzo's selection process.
ezETH in DeFi
ezETH is accepted as collateral on multiple DeFi lending protocols. Its DeFi integrations grew significantly in 2024-2025, making it one of the more liquid LRT tokens alongside weETH (ether.fi). The depeg event in April 2024 was a setback for DeFi adoption — protocols that accepted ezETH as collateral faced issues when it traded below par — but the recovery and continued integrations suggest the market treats it as a recoverable episode.
LRT tokens are not stablecoins. They can and do depeg from their underlying ETH value in secondary markets, especially during high-volatility periods or token generation events. If you use ezETH as collateral in a lending protocol, a depeg can trigger liquidations even if your underlying ETH position is solvent. Understand peg risk before using LRTs as DeFi collateral. Live data: CoinGecko
🟣 The full technical picture
For the technically curious.
Key facts
- Token: REZ (governance, 10 billion total supply)
- Receipt token: ezETH (liquid restaking token)
- Token launch: April 2024 (airdrop)
- Type: Liquid Restaking Token (LRT) protocol
- Chain: Ethereum + L2s (Arbitrum, Linea, Mode)
- Restaking: EigenLayer AVSes (active selection by Renzo risk committee)
- Key event: ezETH depeg April 2024 — recovered; documented above
- AVS management: Curated by Renzo risk committee, not depositor-controlled
- Accepted deposits: ETH, stETH, rETH, cbETH
- Backing: OKX Ventures, Binance Labs, Maven 11; raised ~$17M
ezETH vs weETH — comparison
Both are EigenLayer LRTs but differ in approach. ether.fi (weETH): non-custodial validator keys, larger TVL, more DeFi integrations, launched DeFi credit card product. Renzo (ezETH): custodial validator management, active AVS curation by risk committee, multi-chain deployment (Ethereum + L2s), smaller TVL post-depeg. The depeg event has made weETH the market-preferred LRT in DeFi integrations, but Renzo continues developing and the protocol remains active.