Cryptocurrency staking generates passive income for the holder. They are blocked for use, which prevents use. To resolve this issue, the Renzo protocol performs re-staking, allowing the use of derived coins in negotiations.
The system uses a number of additional features. One of them is re-staking itself. Others are: Liquid Restaking Token (LRT), Actively Validated Services (AVS) and EigenLayer. Understand how the platform works based on the details of each concept.
Re-staking and LRT
Re-staking happens when digital assets are generated derived from those that are locked in stake. Thus, at the same time that the user receives income for placing coins on the chain, they can increase gains by trading assets linked to locked tokens.
These assets are called liquid re-staking tokens (LRTs). For each ETH deposited in the Renzo protocol, the derivative digital asset ezETH is created, which has a value equivalent to the coin deposited.
Users who leave ETH to generate ezETH earn points, called ezpoints, which can be exchanged for the protocol's native REZ token. The distribution of the currency is done in seasons to serve users who have accumulated points since the beginning of the project.
EigenLayer
Renzo is a gateway to the EigenLayer protocol, which runs on Ethereum. With it, you can make transactions without your own validators. This makes negotiations faster, as it does not depend on its own nodes, without compromising the security of the ecosystem.
For beginner blockchains, which need nodes to validate transactions, the EigenLayer protocol is also a good solution, as it lends validators for the chain to function. Because it runs on Ethereum, it uses the Proof-of-Stake (PoS) mechanism as a validator.
In addition, it has Actively Validated Services (AVS), highly validated services that support multiple networks, in addition to offering side networks and data layers. The security of transactions is guaranteed by Ethereum itself.
Ezpoints
ezpoints reward users who participate in Renzo from the beginning, contributing to the development and growth of the project. The more participants transact on the platform, the more points they receive.
One of the ways to earn points is to stake ETH to create ezETH or keep the tokens in your digital wallet. The receiving rate is 1 ezpoint for each ezETH per hour. The ecosystem prohibits looping, that is, using the same LRT to generate rewards multiple times.
Another way to earn ezpoints is to bring more people to the protocol. When there is a new registration on Renzo, the user who made the invitation is rewarded. The more guests deposit ETH into the system, the more points the user who made the invitation receives.
REZ Token
ezpoints can be exchanged for Renzo Protocol's native token, REZ. The ecosystem analyzes the number of points that users have accumulated over the period, regardless of the amount of ezETH they have in their wallet. The quote is 360 ezpoints for each REZ.
You can also earn points for staking REZ. In this case, for every 5 thousand REZ staked, you earn 1 ezpoint per hour. In REZ tokenomics, the total supply is 10 billion tokens. Current circulation is around 1.150 billion.
Learn more about cryptocurrencies
Renzo Protocol allows the creation of staked ETH-derived tokens to increase earnings on the blockchain. To invest in REZ and other cryptocurrencies that diversify your portfolio, visit the NovaDAX website and open your account for free!
