Renzo FAQs

Do I need to hold 32ETH in order to restake with Renzo?

No, you can restake as little or as much ETH as you want, or stake LSTs according to the maximum cap amount, set by Renzo.

Where does yield on Renzo come from?

Currently staking yield comes from ETH validators. As AVSs go live on EigenLayer, Renzo Node operators will plug into them to generate restaking yield.

Who’s running the ETH Validators?

Renzo is partnered with Figment and P2P.org who runs institutional grade nodes on Ethereum, which generate Ethereum rewards https://ethereum.org/en/staking/

How is the ETH to ezETH Exchange Rate calculated?

ezETH is a reward bearing token like Compound’s cTokens. This means that native ETH rewards that are generated from staking are captured by the protocol and reflected in the price of ezETH.

What can you do with ezETH?

Hold ezETH in your wallet to collect rewards, swap or supply ezETH on DEXs, or participate in DeFi opportunities as ezETH is integrated into more DeFi applications.

If I swap my ezETH into other ERC-20 tokens, do I still earn both EigenLayer and Renzo points?

No, you need to hold ezETH in order to accumulate the associated rewards, unless you are holding LP tokens that represent the underlying ezETH. Rewards are directly tied to ezETH, remember, every ezETH you hold accumulates 1 EigenLayer Point and 1 ezPoint plus any boosts.

Why is the APR showing X% on the dashboard?

The APR is calculated based on the 14 day moving average of rewards paid by ETH Validator Nodes. Once EigenLayer is live on mainnet and paying rewards for securing AVSs, this will be included in the APR as well.

During the initial ramp up in the project, as new ETH comes into the protocol, whenever there is 32 ETH deposited, a new ETH Validator node is spun up to join the network. There is a lag of 24 hours to many days before the new Validator node is active on the network, depending on the Validator Entry Queue (see https://www.validatorqueue.com/). Once a node is active, it can take up to 2 weeks for a node to pay out a full cycle’s worth of rewards. During a period of increasing TVL in the protocol (especially at the beginning when TVL is low), this lag will cause a lower APR than expected, compared to other staking services, but this should trend towards the expected native staking yield as TVL grows and stabilizes.

What is a Strategy Manager?

Optimizing risk / reward profile by picking the best AVS combination on EigenLayer so ezETH generates yield with the least amount of risk.

Is there slashing risk for any ETH deposited into Renzo?

ETH that is deposited with Renzo has smart contract risk and slashing risk with Figment as the operator. The Figment report came out for 2023 and they did not have any slashing events and they do have an insurance policy on slashing.

How will Renzo determine which node operators to opt in/out of when new AVS deploy on Mainnet?

Renzo is partnering with Operators who will work with the protocol to specify which AVSs should be run (assuming a number of requirements are met for the AVS).

There are many unknowns in EigenLayer that Renzo is going to take care of for users. For example, Operators can choose to whitelist who can delegate to them, so the protocol will help facilitate solving these types of problems to get the best risk reward setup for ezETH holders.

How will governance determine which AVS that node operators should opt in/out of?

At first it will be a snapshot vote, after processes are defined, tested, and proven, it will move to full on-chain governance.

Are Renzo restakers eligible to receive airdrops from other projects? e.g. Altlayer

If Renzo users are made eligible for another project’s airdrop, they will receive 100% of the airdrop proceeds. Renzo will not answer questions related to 3rd party airdrops in discord or telegram, please reserve your questions for 3rd party projects’ outside of Renzo and inquire in the appropriate channels.