Binance Labs Backs Ethereum Liquid Restaking Protocol Renzo with Investment

Crypto News– Binance Labs, the venture capital and incubation arm of crypto exchange Binance, has made an undisclosed investment in Renzo, an Ethereum liquid restaking protocol built on EigenLayer.

Binance Labs Backs Ethereum Liquid Restaking Protocol Renzo with Investment

This investment from Binance Labs comes shortly after Renzo completed a $3.2 million seed funding round, valuing the startup at $25 million. According to Renzo founding contributor Lucas Kozinski, Binance Labs’ investment follows the same structure as the previous seed round, offering equity with token warrants in a 1:1 ratio.

Renzo marks Binance Labs’ second recent investment in the Ethereum restaking sector. Last month, the firm invested in Puffer Finance, which quickly became the second-largest liquid restaking protocol since its launch on Feb. 1. Puffer Finance has attracted over $1 billion in locked assets, while Renzo ranks as the fourth-largest restaking protocol with over $375 million locked, as reported by DeFiLlama.

Ethereum liquid restaking has emerged as a prominent trend in the crypto space, with billions of dollars flowing into this sector. The trend began with the introduction of EigenLayer, which introduced a restaking system to Ethereum in June last year. EigenLayer currently boasts a total value locked of $7.8 billion, according to DeFiLlama. Protocols built on EigenLayer, including Renzo and Puffer Finance, have collectively amassed over $3.5 billion worth of assets.

Yi He, co-founder of Binance and head of Binance Labs, highlighted the importance of liquid restaking protocols, stating that they play a crucial role in unlocking liquidity, maximizing capital efficiency, and simplifying technical complexities for users.