Renzo Protocol (REZ) is a cryptocurrency initiative that operates as a Liquid Restaking Token (LRT) and strategy manager within the EigenLayer ecosystem. This ecosystem enhances the security and functionality of blockchain networks through services known as Actively Validated Services (AVSs). Renzo offers a way to earn a higher yield than standard Ethereum (ETH) staking by facilitating easier staking processes.
REZ is the governance token of the Renzo Protocol, and it plays a critical role in managing the protocol's operations and decisions. It is built on a model that simplifies participation for users, enabling you to stake ETH or other liquid staking tokens like Lido's stETH to receive ezETH tokens. These tokens represent the rewards earned from staking, making it an appealing option if you're looking to keep your assets liquid while still earning returns.
The protocol automates the selection of the best staking strategies, optimizing for the best risk-to-reward ratios through smart contracts and node operator networks. This makes it user-friendly, particularly for those who might not be deeply familiar with the intricacies of crypto staking.
