How do we do it

The Renzo Protocol is a layer over EigenLayer that users can interact with to abstract away the complexities of the protocol.

The smart contracts are set up in a way to allow delegation to multiple Operators in EigenLayer and also allow users to deposit Native ETH and LSTs.

Depositing and Delegation

When a user deposits native ETH, it is staked via an Ethereum Beacon chain validator node. The native ETH is held in the DepositQueue contract until the 32 ETH minimum is met. Once the minimum is met, the ETH is sent directly to the Beacon Chain Deposit Contract and the withdrawal credentials are pointed at the EigenPod in EigenLayer. This allows the ETH to earn staking rewards and also contribute to securing AVSs in EigenLayer, as shutting down the validator node would give the EigenPod the ability to withhold some of the ETH in case a slashing event occurred. The deposited ETH earns both Ethereum validator rewards and EigenLayer AVS rewards for the protocol.

Upgradeability

The EigenLayer protocol is currently in active development and interfaces are expected to change over time. In order to support these changes, the Renzo Protocol smart contracts are upgradeable via proxy contracts. The upgrade permissions are gated by a protcol multisig contract.