Introduction

Amid EigenLayer's remarkable growth, Renzo Protocol, one of its primary supporters, is making waves. Following a recent surge, Renzo Protocol now boasts an impressive $681 million in Total Value Locked (TVL). Coincidentally, around the same time, EigenLayer itself has secured $100 million in funding. These developments are signs of a major breakthrough in the crypto world, heralding new technology capable of disrupting the industry. Luganodes also happens to have a hand in this development by providing its institutional-grade staking services to Renzo Protocol. In doing so, Luganodes becomes only the third node operator to be entrusted with this significant responsibility.

EigenLayer - A short Introduction

A disruption in its truest sense, EigenLayer has created ripples of influence across the industry. In the simplest terms, EigenLayer empowers the concept of re-staking. To participate in re-staking, stakers can simply opt-in to EigenLayer via their AVS Operators and earn more rewards from their already staked native ETH. Alternatively, they can use their LSTs(Liquid Staking Tokens), for re-staking. Moreover, in the process of earning extra rewards, operators are also benefited.

As for the developers, EigenLayer enables them to tap into the pre-existing, trustworthy ETH security pool. This allows them to circumvent the arduous task of bootstrapping their own security and creating their own token. Instead, EigenLayer allows them to set up an AVS (Actively Validated Services) and get Ethereum’s community of operators and their stakers to secure their application.

This way, EigenLayer creates a win-win scenario for stakers, developers and operators alike.

A deep dive article on EigenLayer is coming soon. Stay tuned!

Renzo Protocol

In the earlier paragraph, we mentioned AVSs - projects built on EigenLayer, which need to be validated. Connecting these projects to the stakers that will secure them is the Renzo Protocol. Renzo operates as a Liquid Restaking Token (LRT) and Strategy Manager for EigenLayer. It simplifies access to the EigenLayer framework, by providing a simplified interface between the user and the AVS node operators. In doing so, it abstracts all complexity, leading to increased adoption of EigenLayer technologies.

Users deposit ETH or LSTs, receiving ezETH in return, which represents their restaked position. In this mechanism, the stakers get to decide whether to secure one of the many AVS, or a combination of them. Based on this choice, Renzo optimises and creates the best risk/reward strategies through smart contracts and operator nodes, thus providing another feature for its users.

Please note that deposits of LSTs are currently capped. Renzo will support wETH and stETH re-staking when EigenLayer LST caps open. There are no caps for native ETH re-staking.

Another component of EigenLayer which is mirrored in the Renzo protocol is the points based incentive program. Restaked Points are awarded to recognise a stalker's contribution to the shared security of the EigenLayer ecosystem. Similarly, Renzo’s ezPoints reward users for their contribution to the Renzo protocol. You can find more detailed information here.

By acting as the primary on-ramp and off-ramp for Ethereum restaking, Renzo plays a crucial role in lowering the barrier to entry for users wishing to participate in the Ethereum ecosystem's security and earn rewards.

Luganodes X Renzo Protocol

As a part of its crucial offering for the EigenLayer, Renzo requires high quality restaking infrastructure. This has led to a partnership with Luganodes, which provides institutional grade re-staking infrastructure. Luganodes is now one of three node operators on Renzo protocol. Now fully integrated on the mainnet, Luganodes provides high-quality services and has forged a close relationship with the Renzo protocol.

Renzo partners with @luganodes to decentralize node infrastructure!@luganodes is an institutional grade staking service provider, rated AAA by staking rewards. With Luganodes, Renzo builds on its mission to provide the highest quality restaking services to its users.… pic.twitter.com/xvxrMdQqpR

— Renzo @ ETH Denver (@RenzoProtocol) February 21, 2024

Conclusion

Luganodes' venture into restaking for Renzo could not have come at a more opportune time. With development on EigenLayer accelerating and innovation reaching unprecedented levels, there is much to look forward to. As part of this significant advancement in the blockchain domain, we remain nimble, keeping pace with the rapid curve of innovation.

About Luganodes

Luganodes is a world-class, Swiss-operated, non-custodial blockchain infrastructure provider that has rapidly gained recognition in the industry for offering institutional-grade services. It was born out of the Lugano Plan B Program, an initiative driven by Tether and the City of Lugano. Luganodes maintains an exceptional 99.9% uptime with round-the-clock monitoring by SRE experts. With support for 45+ PoS networks, it ranks among the top validators on Polygon, Polkadot, Sui, and Tron. Luganodes prioritizes security and compliance, holding the distinction of being one of the first staking providers to adhere to all SOC 2 Type II, GDPR, and ISO 27001 standards as well as offering Chainproof insurance to institutional clients.