• Season 2 will run for three months

• Season 2 represents 5% of supply (500M $REZ tokens)

• Season 1 participants will receive a 10% additional boost

• New ezPoints rewards for key DeFi partners

• Starting April 30th at 11:00 UTC, users will have 30 days to claim their $REZ at claim.renzoprotocol.com

ezPoints Season 2

Starting with our launch in January, Renzo has unlocked native restaking on 7 networks (Ethereum, Arbitrum, Blast, Linea, Mode, Base and BNB Smart Chain) and has been the first restaking protocol to introduce both native ETH and LST deposits, with stETH and wBETH comprising $110m+ of the TVL within 2 weeks of launch.

The Season 2 campaign aims to support this continued growth, reward early users, and increase utility and distribution for ezETH holders on all networks we support. The Season 2 campaign will represent an additional 5% of the total supply (500M $REZ) distributed to our community and will run for three months until July 26th.

ezPoints Boost

With a new campaign beginning on Friday, April 26th, Season 2 will have boosted points for holders of ezETH in user wallets and in supported ezETH DeFi integrations, which can be viewed on the Renzo DeFi page.

Season 1 participants who maintain or increase their ezETH balance in Season 2 will receive a 10% additional boost on their entire ezPoints balance for Season 2 participation.

New Rewards

We’re proud to have the most integrated Liquid Restaking Token in the space with 100+ DeFi integrations across 7 chains, and as we continue to focus on providing utility for ezETH holders, a new season brings new opportunities for boosted rewards across key liquidity partners:

Pendle - 4x ezPoints boost

     ETH (Dec 25 2024 expiry)

     BNB (Sep 25 2024 expiry)

     ARB (Jun 26 2024 expiry)

Balancer / Aura - 4x ezPoints boost

     Balancer ETH ezETH/wETH

     Balancer ARB ezETH/wstETH

     Aura ETH ezETH/wETH

Curve - 4x ezPoints boost

     ETH ezETH/wETH

     BNB ezETH/ETH

Thruster / Hyperlock / Juice - 4x ezPoints boost

     Thruster ezETH/wETH

     Hyperlock ezETH/wETH

     Juice ezETH V3 LP Vault

Kim Exchange - 4x ezPoints boost

     ezETH/ETH

Nile - 4x ezPoints boost

     ezETH/ETH

Claims

Starting April 30th at 11:00 UTC, 1 hour before the Binance listing, the Season 1 airdrop claim window will open. Users will have 30 days to claim their $REZ at claim.renzoprotocol.com. Any unclaimed $REZ tokens will be added to the Season 2 airdrop.

April 26th marks the end of Renzo's Season 1 ezPoints campaign, where we've seen immense growth in active users and TVL. Renzo makes restaking ez for everyone!

Some of the highlights of Season 1:

• $3.5b in deposits

• 33.5% Restaking Market Share

• Top 10 DeFi protocol by TVL

• 250k+ users

Since our launch in January, Renzo has become the most liquid and widely distributed liquid restaking protocol. Unlocking native restaking on 7 networks (Ethereum, Arbitrum, Blast, Linea, Mode, Base and BNB Smart Chain), ezETH on L2s accounts for 24% of total Renzo’s TVL.  In addition, Renzo is the first restaking protocol to introduce both native ETH and LST deposits, with stETH and wbETH comprising $110m+ of the TVL within 2 weeks of launch.

Some Key DeFi Integrations include:

• Morpho Blue 

• Balancer

• Curve

• Pendle

• Gearbox

• Compound

We are excited to announce that April 30th, 2024 will mark the beginning of the decentralization of the Renzo Protocol, with the launch of Renzo’s native token, REZ.

This post outlines:

• Renzo Seasons

• Claiming REZ

• REZ Distribution Conditions

• REZ Tokenomics and Vesting Schedule

• REZ Utility

• Season 2 Details

• FAQs

Season 1 will conclude on April 26th. A user's eligibility is based on the ezPoints balance in their wallet at time of snapshot, regardless of their current ezETH balance.

REZ can be claimed from April 30th, 2024, with the largest wallets holding greater than 500k ezPoints being subject to a 50% unlock at TGE and 50% linear, vesting over 3 months.

The minimum qualification for airdrop eligibility is 360 ezPoints per wallet. Over 99% of the eligible wallets are fully unlocked at TGE.

A second season of incentives will begin on April 26th, 2024.

Renzo ezPoints will be used to distribute 700M REZ on April 30th, or 7% of the total supply of REZ, in a linear fashion according to each user's accumulated ezPoints.

Users can go to claim.renzoprotocol.com to claim their REZ on April 30th. Vested airdrop wallets can claim their tokens at the end of every month.

NOTE: The official Renzo claim link can be accessed via renzoprotocol.com > “Claim REZ” in the navigation bar!  Do NOT click on any links from third parties.

The Season 1 airdrop will be a linear distribution in accordance with a user's ezPoints balance.

Renzo has worked with a third-party data analytics company to identify sybil wallets and has determined that a minimum number of ezPoints per wallet, as of the snapshot date, is required to qualify for a token distribution.

The largest wallets holding greater than 500k ezPoints will be subject to a 50% unlock at TGE and 50% linear vesting over 3 months.

Lastly, a small portion of the initial 7% airdrop,  0.1% of the total supply, has been allocated to the following communities:

• Milady Maker

• SchizoPosters 

The claims will be live for one month from eligibility, after which the unclaimed $REZ will go towards the Season 2 campaign.

Renzo is focused on the long-term growth of the protocol and its community; thus, a vesting schedule will be applied to the largest airdrop recipients to align long-term incentives with the Renzo community.

The vesting is intended to reward longer-term participation. If a qualified user chooses to exit the ezETH ecosystem early, their unvested rewards may be shared with other loyal users to increase the loyal users' share of the airdrop who continue to participate.

Ticker: $REZ

Contract: 0x3B50805453023a91a8bf641e279401a0b23FA6F9

Total Supply: 10,000,000,000

Initial Circulating Supply: 1,150,000,000

1. Fundraising: 31.56%

   1. The Fundraise allocation represents token rights obtained by investors backing Renzo’s early development

   2. Investor tokens are subject to a total 2 year lock - 1 year cliff followed by 10% unlock and 1 year linear monthly vesting thereafter

2. Community: 32%

   1. Allocated to developing and supporting the growth of the Renzo ecosystem

   2. The first 7% represents the portion of REZ distributed to Renzo users for Season 1 of the ezPoints Campaign

   3. The remainder of the allocation will be used for various community campaigns, including 5% allocated towards the upcoming second season of the incentives campaign, as well as various cross-chain initiatives, etc.

3. Core Contributors: 20%

   1. This portion of the REZ allocation represents the distribution to the Renzo Labs team and advisors who have worked on the protocol to bring ezETH to market.

   2. All core contributors are locked on a 1-year cliff with 2-year linear monthly vesting thereafter.  No core contributor tokens are unlocked before the 1 year cliff.

4. Foundation: 12.44%

   1. The Foundation allocation will be used to fund initiatives that widen the reach of ezETH, such as: further development, risk assessments and audits

5. Binance Launch Pool: 2.5%

6. Liquidity: 1.5%

   1. Liquidity campaigns, exchange (CEX & DEX) partnerships, ecosystem partners, and market makers

REZ will be used to vote on governance proposals on matters regarding the Renzo protocol, some of which will be key measures to the operations of the protocol, such as:

1. General risk management frameworks

2. Deposits, collateral assets, and concentration amounts

3. Operator whitelisting

4. Actively Validated Services (AVS) whitelisting

5. Treasury and community grants

Season 2 starts Friday, April 26th, 2024. All users in the ezETH ecosystem are eligible for points allocation in the new season.

Boost - Season 1 eligible wallets will receive a 10% additional boost for Season 2 participation. Further details on Season 2 will be announced shortly.

How do I claim my REZ?

Users can visit claim.renzoprotocol.com to claim their REZ beginning on April 30th, 2024.

NOTE this is the ONLY official Renzo claim link. If in doubt, please visit renzoprotocol.com and proceed to the “Claim” tab directly. In the interest of caution, do not click on any links from third parties claiming to be associated with Renzo.****

Q: Why do smaller wallets receive no vesting conditions?

A: For users with a smaller wallet balance we wanted to acknowledge the higher gas fees required to participate in Renzo and minimize friction for users.

Q: Do I continue earning rewards after the 26th of April if I participated in Season 1?

A: Yes, a user's eligibility is based on the ezPoints balance in their wallet at time of snapshot. Season 1 users will continue to automatically earn ezPoints as long as they maintain their ezETH balance in their wallets or in any of Renzo’s DeFi integrations.

Q: Can I participate in Season 2 if I’m not eligible for Season 1 distributions?

A: Yes, users who did not participate in Season 1 will be able to accumulate points and participate in Season 2.

Q: Is all my REZ subject to vesting?

A: Only the largest wallets holding greater than 500k ezPoints will be subject to a 50% unlock at TGE and 50% linear vesting over 3 months.

Q: If I accumulated points via DeFi integrations, will my ezETH still be accounted for?

A: Yes, as long as you’re participating in the ezETH ecosystem (i.e. deposits in any of the Renzo DeFi integrations), you are allowed to move your ezETH between DeFi protocols.

Q: If I sell my ezETH before snapshot on April 26th, will I still be eligible for Season 1 airdrop?

A: Yes, if a user sells their ezETH before the snapshot and satisfies the minimum ezPoints criteria described above, they will remain eligible for the Season 1 airdrop.

Q: If I held Pendle YT positions that expire at 00:00 UTC on April 25th, will I still be eligible for the airdrop?

A: Yes, all Pendle YTs are eligible for airdrop as long as they satisfy the minimum ezPoints criteria.

Q: With regards to holding eligible NFTs for airdrop allocation, is the eligibility per NFT held or per wallet?

A: The airdrop allocated to NFTs will be distributed evenly amongst all NFT holders based on their share of the NFTs.

Renzo’s ezETH integration with Chainlink allows for new DeFi integrations that require Chainlink pricefeeds, including Compound Finance.  Chainlink was chosen as Renzo’s preferred oracle solution because its infrastructure is seamless to integrate and time-tested in production. As the most widely adopted price data standard in Web3, Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.

Renzo provides liquid access to restaked ETH and LSTs through the ezETH. Built as a layer on top of EigenLayer, Renzo abstracts away the selection and delegation complexities for EigenLayer Node Operators and Actively Validated Services (AVS). Holders of ezETH can receive restaking rewards including ETH, USDC, and Actively Validated Services reward tokens. The rewards are automatically reflected in the price of ezETH so that recipients never have to worry about claim costs or waiting periods. This not only adds additional rewards in comparison to other LSTs but Renzo users are also eligible to receive both ezPoints and EigenLayer points.

In order to help secure Renzo’s asset deposit and pricing logic, there was a need to access fresh asset prices that are supplied directly on-chain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, Renzo needed to make use of an oracle network to fetch aggregated price data off-chain and deliver it on-chain to be consumed.

After reviewing various oracle solutions, Renzo integrated Chainlink Price Feeds because they provide a multitude of critical features such as:

• High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.

• Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.

• Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.

• Reputation System  — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.

In the future, Renzo is looking to leverage several services on the Chainlink platform, including additional price data feeds, Chainlink Automation, and the industry-standard Chainlink CCIP.

“Ever since learning about Chainlink at ETH Denver 2018, I’ve been following the protocol and have been impressed with how it has evolved to be the top provider for bringing real-world use cases to smart contracts. Our initial integration of Chainlink Price Feeds is just the beginning. Chainlink offers a whole platform of developer services that can help us move faster and focus on what matters while staying secure with the best infrastructure the blockchain industry has to offer.”

- James, Founding Contributor at Renzo

Chainlink is the industry-standard decentralized computing platform powering the verifiable web. Chainlink has enabled over $9 trillion in transaction value by providing financial institutions, startups, and developers worldwide with access to real-world data, offchain computation, and secure cross-chain interoperability across any blockchain. Chainlink powers verifiable applications and high-integrity markets for banking, DeFi, global trade, gaming, and other major sectors.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link.

Renzo is the restaking hub of Eigenlayer built to streamline and expand access to the most intelligent Liquid Restaking strategies. Powered by institutional-grade node operators, Renzo abstracts away the complexities of securing Actively Validated Services (AVS) while delivering a powerful interface for risk management and rewards tracking on Eigenlayer. With Renzo’s ezETH—the most integrated Liquid Restaking Token (LRT)—users can access broad exposure to the EigenLayer (and Ethereum) ecosystems with more opportunities to generate rewards. Learn more: https://www.renzoprotocol.com/

1. ETH staking yield, ETH deposited with Renzo is staked with Figment on Ethereum mainnet

2. EigenLayer Restaking Points, No fees and never subject to EigenLayer caps https://docs.eigenlayer.xyz/restaking-guides/restaking-user-guide/restaked-points

3. Renzo ezPoints, earned on ETH deposits and referrals

Renzo ezPoints are meant to reward users who contribute to the protocol's success. Starting with the Renzo Beta mainnet launch on December 18th, 2023, every participant in the Renzo ecosystem will receive points. The number of points will vary on the time duration and nature of participation.

The first way of receiving points will be by minting ezETH. Renzo rewards every participant who mints and holds ezETH in their wallet. They will receive 1 Renzo ezPoint per hour for every ezETH they hold. In addition, users will also receive boosts for early participation.

As the restaking ecosystem matures, Renzo will announce additional ways to earn Renzo ezPoints.

Early holders and minters of ezETH as well as liquidity providers (LPs) on DEXs will be rewarded a boost.

Earn extra Renzo points by inviting other users who deposit ETH For each person who joins Renzo using your referral link, you will earn an additional 10% of the referred users’ points. Example: If you refer to a user who earns 1,000 ezPoints you will earn 10% or 100 ezPoints for referring that user. The key factor for earning these extra points is deposits made by the person you've invited. The more they deposit, the more Renzo Points you accumulate. The system is cumulative, meaning the more people you invite and who actively use, and deposit ETH, on Renzo, the greater the number of Renzo Points you can earn.

You can learn how to stake and refer to our walkthrough, How to Restake with Renzo. Track your participation and progress https://app.renzoprotocol.com/portfolio

Renzo is the first native restaking protocol to launch on EigenLayer mainnet. Although EigenLayer will not begin securing Actively Validated Services (AVSs) I.e. EigenDA until mid-2024, they have been accepting deposits. Deposits for Liquid Staking Tokens (LSTs) are capped; however, native ETH deposits remain uncapped but very difficult for most users to access. They require a user to have 32 ETH and run an Ethereum node that is integrated with EigenLayer to run EigenPods.

Engage in the Renzo Discord! Join our thriving community in the Renzo Discord to share your experience with other members.

Will users earn Eigenlayer Restaked Points by restaking ETH?

Yes, Renzo passes 100% of all EigenLayer Restaked Points to users.

What are EigenLayer Restaked Points?‍

Restaked Points measure your contribution to the shared security of the EigenLayer ecosystem. Learn more in the EigenLayer docs.

How can Renzo ensure EigenLayer Restaked Points?‍

EigenLayer never caps native ETH deposits. Renzo has abstracted away the technical hurdles, making native restaking accessible to everyone.

Does Renzo charge fees on EigenLayer Restaked Points?

No, 100% of EigenLayer Restaked points will be distributed to Renzo users. Please note, due to the technical nature of native ETH staking rewards only start accumulating after approximately the first 24 hours after user deposits ETH with Renzo.

EigenLayer announced caps on LST restaking, however, native ETH restaking will remain uncapped. Typically, users need to set up and manage Ethereum validators and create EigenPods.

Renzo runs a distributed Ethereum validator infrastructure powered by Figment to enable unrestricted participation on Eigenlayer via native ETH restaking, abstracting away the infra setup.

Renzo users earn ETH staking yield, EigenLayer Restaked Points and Renzo points. Here’s a step-by-step guide:

Go to the following URL to access the dapp: app.renzoprotocol.com/restake

1. Connect Wallet

2. Switch to Ethereum Mainnet

3. Enter the amount of ETH you want to restake and click on confirm. Review the tx and confirm it.

4. Confirm on your wallet

5. After you click on Confirm, the transaction is submitted and you can check Etherscan

6. Go to the Portfolio tab to view your earned your EigenLayer Restaked points and staking rewards

Please feel free to hop into our discord for further questions or help. Or view our FAQ section in the docs.

Some additional info:

Transfers - ezETH transfers will be enabled in Jan 2024 making EigenLayer participation instantly liquid

Withdraw - Users could withdraw the deposited ETH following a cooldown period in Q1 2024

Claim - This feature will allow users to claim rewards generated within EigenLayer.

There is one key difference that separates staking from restaking. When you stake, there is only one way to do it - secure the base chain.

But, unlike staking, restaking requires you to pick and select which networks you want to secure or a combination of them.

These decentralized services that will inherit Ethereum's security via EigenLayer are called AVS - Actively Validated Services. Each AVS presents a unique entry point for rewards and relevant slashing risks.

We define restaking strategy as a unique position where the user decides to secure one of the many AVS or a combination of AVS. The number of strategies possible for securing an activity increases with the number of AVSs.

Moving on, the ideal case is one wherein users can 100% secure all AVSs, operators behave in an honest and all slashing risk is minimum. However, building a robust restaking system is one where restakers must be able to quantify slashing risk and choose to secure certain AVSs that have a favorable r/r while avoiding others that have a less attractive r/r. Consequentially, a restaker needs to construct a restaking portfolio optimizing for risk-adjusted returns based on their risk profile.

Let’s define the problem statement here first.

To quantify, the number of possible strategies is expressed with the equation:

2^n -1

This equation considers all possible combinations of securing AVS, from securing one to securing all AVS, n being the number of AVS.

Consider a scenario with just 3 AVS - A, B, C. Number of strategies possible are

1. AVS A: Securing only AVS A

2. AVS B: Securing only AVS B

3. AVS C: Securing only AVS C

4. AVS A and AVS B: Securing both AVS A and AVS B together

5. AVS A and AVS C: Securing both AVS A and AVS C together

6. AVS B and AVS C: Securing both AVS B and AVS C together

7. AVS A, AVS B, and AVS C: Securing all three AVS simultaneously

In this scenario, there are 7 different strategies to secure the activity, based on whether you secure each AVS or their combinations.

Now, as the number of AVS increases, so will the number of strategies. In fact, this increases exponentially.

At 15 AVS, we will have 32,767 strategies possible. As you can imagine, evaluating the right combination of AVS while optimizing for risk-reward and actively managing these positions gets more tenuous as more AVS join the network.

Risks of securing any AVS are mainly of 2 categories - Slashing Risk and Liquidity Risk (of AVS rewards). And while liquidity conditions help us estimate a cap on how much capital can we allocate to an AVS, it doesn’t directly cause a default/loss of principal. Hence, we prioritize slashing risks to construct a restaking portfolio of AVS.

We propose a new parameter called ‘MaxLoss’. MaxLoss will serve as an indicator for slashing risk for any strategy securing one or more AVS. Therefore, the higher the MaxLoss riskier the strategy.

MaxLoss = maximum percentage of stake that can be frozen/slashed by each AVS

E.g. If the network decides to freeze 2% of staked ETH for downtime and 7% for double signing, then MaxLoss = 7% for the network.

In many ways, we can compare MaxLoss to the probability of default in a standard debt position, but instead, you only lose a partial portion of your collateral. The ideal restaker will also unstake immediately after one slashing event, rather than hold & watch their stake slowly go to zero.

This means, MaxLoss of a strategy securing n AVSs is the summation of MaxLoss assigned to every individual AVS.

$$$

MaxLoss (Strategy) = \sum_{i=1}^{n} MaxLoss(AVS_i) $$$

MaxLoss helps us quantify slashing risk for a restaking portfolio. It helps us identify the additional risk for every new AVS we secure, or the tradeoff when we pick one AVS over another.

Risk is, however, not the only metric we require when we construct a portfolio. The other component is (you guessed it!) rewards. Hence, enter RAR.

Let’s define the Sharpe ratio for a typical financial investment (Thanks ChatGPT):

The Sharpe ratio is a measure of risk-adjusted return in finance. It is used to evaluate the performance of an investment by taking into account both the return and the risk of that investment.

The higher the Sharpe ratio, the better the investment's risk-adjusted return. It allows investors to compare different investments and determine which one provides the best return for a given level of risk.

In other words, the Sharpe Ratio is an indicator of how fruitful your investment is for the risk you’re taking. Better the Sharpe Ratio the better your portfolio.

Now let’s try to estimate an equivalent Sharpe Ratio for restaking, or rather Risk-Adjusted Reward Ratio (RAR):

A user would want to maximize RAR of its restaking portfolio and allocate more to AVS that increase RAR i.e. offer higher rewards and pose lower slashing risk.

Thanks for reading. In the next few pieces, we will talk about we will talk about how we can allocate weights to individual strategies, construct a diverse portfolio, the covariance between restaking positions, and also simulating restaking strategies.

With restaking as a primitive and EigenLayer as a protocol, a network can program three types of trust: Economic Trust, Decentralized Trust, and Ethereum inclusion.

As restaking gains more prevalence, there is a natural need for services that enable and simplify the restaking process for new users. These services, such as Renzo, provide an interface to restake on EigenLayer abstracting away the technical barriers, resource allocation, and risk management. In turn, they also enable the creation of new primitives and design considerations for AVS applications, fostering open innovation and flexibility in the construction open distributed systems.

This research article will cover a few innovative applications that are possible with EigenLayer and protocol services built on top that enable such new designs:

1. Time-Locked Economic Security: AVSs that require a fixed value of economic security for a predefined time duration can do so via services such as Renzo. Here, the said participants are bound via a time-locked security contract to certain economic security and ensure the AVS does not worry about the volatility in staked value, especially during periods of important time-sensitive projects (for eg. AI training tasks occurring on a service provider's hardware needs security till the model training is complete). These time-locked contracts can also offer different incentives from vanilla staking and foster long-term staking commitment.

2. Chimera chains / Rollups: With an ever-increasing number of rollups launching atop Ethereum, there will be a large number of applications operating across rollups that require atomic transaction inclusion guarantees.  An ideal situation would resemble a setting in which a single atomic transaction can try to complete the execution of contract calls on both chains and either succeed or fail. Completion of transactions on one chain and failure on the other would not be desirable. This has also been described as shared validity sequencing.  An AVS could include sequencer operators from multiple networks that commit to chimera state partitions to facilitate these operations.

3. Data Availability: EigenDA, EigenDA is a secure, high throughput, and decentralized data availability (DA) service built on top of Ethereum using the EigenLayer restaking primitive.  A service like Renzo can enable wETH restaking on rollups that seek Data Availability from EigenDA. This transaction is performed using a decentralized network of relay operators also on EigenLayer. Cross-chain staking allows rollup users and treasuries like Celo and Mantle to earn rewards from restaking while retaining their capital on the rollup.

4. Verified Economic Trust (Privacy preservation): EigenLayer will open up a new era of adoption that will include AVS clients that seek Ethereum’s security but are required to moderate certain participants due to their geographical jurisdiction, on-chain history, or even compliance requirements. Thus, these clients can incentivize participating nodes and restakers to meet predefined profiles. Renzo can independently moderate such participants while passing on higher incentives to them.

5. Enterprise restaking: Enabling any player to permissionlessly build the restaking infra end-to-end, a smart contract that accepts deposits, node infrastructure, and securing the AVS strategy, thus controlling the entire flow with or without a liquid token. This also offers flexibility to custom-build parts of the infrastructure that suit their specific tastes and preferences. In many ways, this is similar to Tanssi for Parachain deployment.

6. Dual staking marketplace: In dual staking, restakers are required to stake the AVS's native token, and both ETH and the rewards are split at a determined rate. This will open up doors for marketplaces wherein AVS stakers are matched with ETH restakers and specific operator nodes to provide combined economic security, similar to Ignite by Benqi.

7. Financial primitives: Fractionalisation of AVS rewards via liquid tokens will enable the creation of new on-chain financial primitives, allowing restakers to hedge against AVS price volatility, slashing risks and making the restaking marketplace more efficient. Stakeholders can also build reward management strategies for the AVSs they support.

8. Ecosystem-specific restaking tokens: An ecosystem-specific LRT is backed by LSTs/ETH restaked only to secure a specific AVS that supports smart contracts. These LRTs are minted on the said AVS and can have higher use cases and introduce new primitives such as:

   1. Priority execution - Users holding or transacting the said LRTs get priority execution on the chain

   2. Fee rebates - Fee rebates on transactions involving the LRT

   3. Integrating LRT as a Gas token

   4. Dual governance representing aligned token-holders + restakers

As Renzo builds one of the first strategy managers and liquid restaking tokens on EigenLayer, we are excited about the open innovation possibilities via restaking. If you are an AVS developer, researcher, or team building on EigenLayer, feel free to reach out to team Renzo on X.

Thanks to Neel Daftary and Krane for feedback and inputs.