A few days ago, Binance launched the 53rd launchpool mining activity. By staking BNB and FDusd, you can get REZ tokens.
According to the data, after 6 days of mining, if you pledge FDusd worth 1wu, you can mine 100 REZ. If 1wu is exchanged for BNB, you can mine 140REZ. You also have to bear the fluctuations of purchasing BNB.
Some people predict that the launch price of REZ will be 1-2u, but I wonder what the actual price will be?
What is Renzo?
Renzo is a Liquid Restaking Token (LRT) and strategy management protocol built on EigenLayer, which earns additional rewards through ETH restaking.
Renzo is an important interface of the EigenLayer ecosystem, used to secure the Actively Validated Services (AVS) and provide higher returns than ETH staking.
Renzo simplifies the complexity of end-user operations, manages risk and profit strategies through the synergy of smart contracts and operator nodes, and provides users with an ideal re-staking channel.
Renzo is similar to projects such as Lido, Swell, and Puffer. They are all products in the re-pledge track, and they also have their own advantages and characteristics.
Advantages and disadvantages of Renzo
Renzo provides users with a simplified re-staking process, removing the complexity of selecting and managing an operator or rewards strategy.
Renzo focuses on the diversification of ETH staking and reduces costs through cross-chain functions. Not only the Ethereum network, but also Layer2 networks such as Arbitrum, Base, and Linea make it easier for users to participate in re-staking.
Simplified processes, convenient methods, better interactive experience, and lower transaction costs are the significant advantages of the Renzo protocol.
At the same time, the Renzo protocol also has some shortcomings.
For example, the ezETH tokens obtained by staking ETH lack transferability, resulting in zero ezETH tokens in circulation, reducing users' ability to pool ezETH assets from compromised wallets to safer wallets.
Moreover, the asset unlocking period is long. Due to the lack of liquidity, the unlocked assets will limit users' access to funds during the unlocking period, causing users to lose valuable profit opportunities.
The biggest challenge is still the smart contract vulnerabilities faced by the protocol.
The Renzo Protocol is a new project that relies on a series of smart contracts (including EigenLayer) to operate, but any vulnerability in any smart contract may cause the project to suspend operations.
What are the future prospects for Restake Track?
After the Cancun upgrade, the new DeFi narrative on the Ethereum chain, ReStaking, has become a hot track, but the wealth-creating effect is not obvious.
Although there is a lot of attention and discussion, players have not seen much tangible benefits. Although there is a certain degree of popularity, no fomo has been formed.
It is difficult for small funds to form a large wealth effect on the restake project, and since there are only a few large players, it is difficult to create a hot situation.
Various re-pledge projects, such as LDO, have been online for a long time, but have not had any surprising trends; although ETHFI was very popular when it was launched and once rose to US$8.6, it lacked sustainability and the overall wealth benefit was not obvious.
I don’t know how the restake will develop in the future. After all, the popularity of projects on the ETH chain continues to be polarized.
More traffic and liquidity are flowing into the BTC ecosystem, from the MEME market of inscriptions and runes, to various BTC NFTs; and then to BTC re-staking in the defi market, such as the popular Merlin Chain and BounceBit with BTC staking gameplay.
The hot spot is rotating, and I don’t know where it will go this time. I have to wait and see when it is revealed.
The above is just my personal opinion, not investment advice. I am Chuxiaolian, and I am paying attention to the crypto market and web3.
