Earlier this year Figment was announced as the primary node operator partner of Renzo, the first liquid restaking protocol to run Ethereum Layer 1 validator infrastructure and a specialized EigenLayer Operator to support Eigenlayer’s shared security implementation, also known as Restaking.
Restaking requires bonding either ETH or LSTs (such as stETH or cbETH) in smart contracts, and Renzo solves the liquidity problem in staking by issuing its liquid receipt token, ezETH, to depositors who deposit ETH and LSTs into the protocol. While running enterprise-grade infrastructure and issuing a liquid token are two very important aspects of the partnership, we aim to benefit the Ethereum and EigenLayer ecosystems at a much larger scale together with Figment’s Renzo Operator.
Renzo and Figment Collaboration
Supporting the vision of restaking with EigenLayer means supporting more than a single AVS. In addition to Renzo users depositing into Renzo and Figment running the validator infrastructure for the underlying restaked ETH, Renzo acts as a Strategy Manager for Figment’s Renzo Operator. Figment is running an Operator in addition to our initial public Operator to validate AVSs of Renzo’s choosing, secured by Renzo depositors. Renzo takes a robust approach to AVS selection and delegation distribution among its Operators.
Each AVS presents a unique entry point for rewards and relevant slashing risks. Renzo aims to construct a restaking portfolio optimizing for risk-adjusted returns based on users’ risk profiles. Following a rigorous approach to quantify restaking risks for every AVS primarily based on their slashing conditions but also inclusive of criteria like effective node decentralization, infrastructure costs, geographical distribution, etc, Renzo curates a portfolio of AVS strategies with the help of risk managers like Gauntlet. The rewards from the AVS strategies are accrued to the ezETH holders as the value of the collateral backing ezETH increases over time. Readers can find more information here.
The beauty of shared security, now being implemented on Ethereum by EigenLayer, is that the security of a smaller protocol, like an AVS, can be supported by that of a more established protocol, like Ethereum. This means that attacking a relatively new AVS inherently requires compromising Ethereum. This implementation is why it is crucial for liquid restaking protocols to collaborate with trusted infrastructure providers like Figment who not only have demonstrated outstanding performance in validating the underlying Ethereum chain for years but also many of the other top Proof-of-Stake protocols in history which provide an unparalleled experience when onboarding new AVSs to our Operators. We are excited and honored to bring our expertise in achieving this vision for EigenLayer.
Continuous Improvement and Engagement
We look forward to the continued successful partnership with Renzo to seamlessly onboard users to liquid restaking to secure the top AVSs in the world. We encourage people to visit the Renzo restaking app and get in touch with us for any questions.
About Figment
Figment is the leading provider of staking infrastructure. Figment provides the complete staking solution for over 500 institutional clients, including asset managers, exchanges, wallets, foundations, custodians, and large token holders, to earn rewards on their digital assets. On Ethereum, Figment is the largest non-custodial staking provider of staked ETH. Institutional staking services from Figment include seamless point-and-click staking, portfolio reward tracking, API integrations, audited infrastructure, and slashing protection. This all leads to Figment’s mission to support the adoption, growth, and long-term success of the digital asset ecosystem. To learn more about Figment, please visit figment.io.
About Renzo
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/
The information herein is being provided to you for general informational purposes only. It is not intended to be, nor should it be relied upon as, legal, business, tax, or investment advice. Figment undertakes no obligation to update the information herein.
