Renzo enters Solana liquid restaking, set to launch ezSOL on Jito

Renzo, an Ethereum liquid restaking protocol, has expanded into the Solana liquid restaking space through a collaboration with the Jito Foundation. As part of the deal, Renzo will launch ezSOL, a Solana liquid restaking token (LRT), on Jito.

"Renzo will serve as the inaugural liquid restaking protocol on the Jito (re)staking platform," Renzo said Wednesday. "Users will be able to mint ezSOL using JitoSOL as the underlying staked asset, leveraging Jito's MEV-enhanced validator network."

Jito is a Solana liquid staking protocol that distributes both staking and MEV (maximum extractable value) rewards to holders through its liquid staking token JitoSOL. Last month, the Jito Foundation released the code for Jito restaking, notably supporting a variety of staked assets, including JitoSOL, other liquid staking tokens or any Solana-based token.

Restaking allows users to earn additional rewards by locking up their staked assets again in different protocols, known as actively validated services (AVSs), to maximize their earnings. Once launched, Renzo's ezSOL liquid restaking token can be used across various Solana-based DeFi protocols, enabling users to increase their rewards.

ezSOL is expected to launch next month, Lucas Kozinski, Renzo's founding contributor, told The Block.

"The launch of ezSOL on Jito's infrastructure marks a pivotal moment for liquid restaking. By leveraging Jito's unique restaking architecture, we're creating a more capital-efficient staking derivative that can serve as a building block for complex DeFi strategies on Solana," Kozinski added.

Renzo's Ethereum liquid restaking offering

Renzo currently offers Ethereum liquid restaking service on EigenLayer and Symbiotic, with its liquid restaking tokens ezETH and pzETH, respectively.

The Ethereum restaking sector has recently witnessed a decline in total value locked (TVL) or deposits. Last month, for example, EigenLayer experienced the largest single-day net outflows in its history on July 11, with over $135 million worth of net outflows, translating to around 43,550 ETH at that time. Renzo's TVL has also declined in recent months.

Kozinski said that Renzo has withdrawals enabled, allowing restakers to move freely in and out of the protocol.

"With the recent turmoil in the markets, Renzo has proven to be the most stable and liquid restaking protocol on Ethereum," he added.

Renzo is currently the third-largest Ethereum liquid restaking protocol after Ether.Fi and Puffer Finance, with over $1.3 billion in TVL, according to DeFiLlama data.