TL;DR：
After experiencing the community turmoil over the allocation rules, Renzo accidentally revealed the market liquidity risk of LRT.
As one of the earliest re-staking protocols, Renzo wants to occupy more market share and capture better returns in the future as AVS services become more diverse through its positioning as a strategy manager.




Although the pie chart he created, which was comparable to that of the Statistics Bureau, caused an uproar in the community, Renzo, who was ashamed of being ridiculed, still listened to the advice and changed some conditions, which saved the goodwill of a wave of users.


However, Renzo’s LRT liquidity crisis test still has a certain warning effect on the current Restaking craze.

Due to concerns about security issues when upgrading the Eigenlayer M1 contract to the M2 contract, Renzo has not yet developed withdrawals.
So if it is not possible to withdraw cash like ETHFI, then exiting the secondary market will be extremely prone to liquidity risks.
Therefore, the points hunters who used LRT assets as collateral for revolving loans on some lending applications (@GearboxProtocol/@MorphoLabs, etc.) suffered heavy losses.

Apart from these emergencies before the launch, Renzo, as the second Restaking project launched by Binance, has grown from obscurity in October last year, when it could not even pay salaries, to investment in Maven11, and then to a TVL of US$3.3 billion some time ago, becoming the LRT protocol second only to ETHFi. This legendary growth is indeed amazing.

About Renzo:

Renzo is a liquidity derivatives platform based on Eigenlayer. Its goal is to become the re-staking service management center for Restaking users. It allocates LST to the best strategy for users based on the security and yield of AVS.


Renzo is the first LRT protocol after Eigenlayer. One of its characteristics is that it has noticed the popularity of L2, and cooperated with the cross-chain protocol Connext to support multiple Layer2s with large TVL on the market. Through L2's low Gas, it can be pledged to Eigenlayer to seize a large part of L2 users.

Renzo's Future:

Renzo’s listing on Binance is seen as the beginning of its protocol, and Renzo will have more goals for the future of the LRT track.
For example, more EzETH use cases, expansion to more Layer2, and even cooperation with many Rollups to use EzEth as Gas.

Another point involves Renzo's positioning of himself - Eigenlayer's strategy manager. As Eigenlayer's AVS increases, many AVS with higher yields can reduce the cost of funds.

Renzo is built on Eigenlayer. All interactions of Eigenlayer on the mainnet will generate high gas costs. This expenditure will reduce the user's staking return rate. In the future, the rewards from the launch of AVS will cover part of the losses, allowing users to have better returns.

Although Eigenlayer's AVS revenue is one of the important sources of income for LRT, the risk of AVS fines and liquidity security issues are also hidden risks that have not yet occurred in the market.
As AVS increases, the choice between risk and return becomes very complicated. In the future, Renzo will work with companies such as Gauntlet to build a framework for investment portfolios through quantitative methods.
The above features are actually the problems that will arise in many services that are about to grow on a large scale or even become the norm in the future after Eigenlayer introduces AVS and implements LST.
If Renzo plays the role of "strategy manager" well, he can indeed build strong long-term competitiveness for Renzo and enable it to stand firmly in the top echelon of the LST field.

As mentioned above, Renzo changed the rules after listening to the community’s voice. The details are as follows:

a) The airdrop claiming time will be moved forward from May 2 to 1 hour before Binance opens.

b) In the first quarter, the airdrop allocation extracted 2% of the total $REZ from the foundation and MM, increasing to 7% (which is more than ETHFI's 6%).

Binance LaunchPool will produce 2.5% of the 11.5% of the opening circulation. Based on the recent market and the considerable panic risk, everyone’s expectations are a bit low.
But free chips are easier to hold on to, and Renzo's development period is still in the future when Eigenlayer expands LST's business.