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Renzo Integrates RedStone Oracles To Enhance Liquid Restaking

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What is Renzo?

Renzo is a Liquid Restaking Token (LRT) and Strategy Manager for EigenLayer. It is the interface to the EigenLayer ecosystem securing Actively Validated Services (AVSs) and offering a higher yield than ETH staking.

The protocol abstracts all complexity from the end-user and enables easy collaboration between users and EigenLayer node operators.

What is ezETH?

ezETH is Renzo’s liquid restaking token that represents a user’s restaked position, allowing deposits in native ETH or LSTs in exchange for ezETH. This token is reward-bearing, akin to cTokens, with its value increasing through rewards earned from underlying restaking positions in ETH, LSTs, and AVSes reward tokens. These rewards are reflected in ezETH’s price, enhancing its value relative to the original LSTs. Users can mint ezETH by staking their ETH or LSTs. 

Withdrawals from restaking require at least 7 days, influenced by EigenLayer unstaking protocols and the specifics of each AVS. Rewards distribution is equitable across assets if deposits and withdrawals are balanced, but varies per asset if not, to encourage balance via the jump rate model. Note that ezETH withdrawals directly are not available, but users can convert ezETH to ETH through liquidity provision or trading on the Balancer platform. Renzo ensures 100% distribution of EigenLayer points, with fees divided between its treasury and node operators.

You can’t integrate ezETH into DeFi without an Oracle

ezETH price feed from the RedStone app

The trusted Oracle acts as a bridge between the liquid restaking token and the DeFi ecosystem. It provides reliable and accurate external data that is crucial for various DeFi protocols to make informed decisions. This integration ensures that the utility of the token extends beyond its initial purpose, unlocking new opportunities for users. By establishing a secure and trustworthy connection, RedStone Oracles enhances confidence in utilizing ezETH across different DeFi applications while maintaining integrity and minimizing risks associated with incorrect or manipulated data.

Implemented Solution

RedStone Team implemented a price discovery mechanism based on the 4 most liquid DEX’es where ezETH tokens are traded:

  1. Balancer ezETH-WETH
  2. Balancer weETH/ezETH/rswETH
  3. Curve ezETH/WETH
  4. Uniswap ezETH/ETH

We also prepared a liquidity monitoring service to rearrange the pools in case of changes in the amount of deployed tokens to mitigate the attempts to manipulate the price. 

In the final step, we facilitated the deployment of multiple data provider nodes, relayer nodes and monitoring services to actively track the operations of data-providing infrastructure.

About RedStone

RedStone is a Modular Oracle specialising in yield-bearing collateral for lending markets, especially LSTs & LRTs. It offers gas-optimized data feeds across 50+ chains & all rollups. Trusted by Morpho, Venus, & more. 

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