Renzo Labs Announces ezSOL, a New Liquid Staking Token Targeting Solana's Forthcoming Reststaking Platform from Jito Labs

Renzo, a liquid restaking protocol recognized for its work on Ethereum initiatives like EigenLayer and Symbiotic, recently announced that it is gearing up to launch a new

Solana is witnessing the early development of a “restaking” framework, a concept that enables securing new protocols and applications without requiring additional validator networks. While Jito Labs, a key developer of infrastructure tools for Solana, has yet to launch its restaking feature on the mainnet, interest is growing among potential launch partners in this promising opportunity.

One of these initiatives is Renzo, which plans to launch a SOL derivative token that will allow holders to benefit from Jito’s yield-generating infrastructure and the additional tokens generated from both staking and restaking activities. This marks a strategic shift for Renzo, a founding participant in the EigenLayer ecosystem, with its ezETH being one of the leading liquid restaking tokens in Ethereum.

The principles guiding Renzo’s new initiative will be similar to those used in its Ethereum projects, according to Lucas Kozinski, a founding contributor at Renzo. However, the terminology differs between the two platforms; while EigenLayer refers to these secured blockchain applications as “actively validated services” (AVSs), Jito uses the term Node Consensus Networks (NCNs).

Kozinski believes that restaking could become the largest segment of DeFi, considering the rapid growth of liquid staking. He acknowledges the complexities inherent in restaking, noting that while the focus often rests on the tokens themselves, substantial underlying infrastructure is necessary to support the security of AVSs and NCNs.

The operational mechanics of ezSOL will see users on the Solana network depositing SOL into Renzo and receiving the ezSOL token in return. Subsequently, Renzo will stake the deposited SOL with Jito to acquire jitoSOL, allowing access to MEV (maximum extractable value) rewards and Solana’s native yields. Finally, Renzo will restake this jitoSOL with the NCNs.

While there are parallels between Renzo’s liquid restaking models on Ethereum and its anticipated application on Solana, the implementation of these systems requires a significantly different approach due to the contrasting architectures of the two blockchains. Additionally, the programming languages employed are not the same. To navigate these differences, Kozinski has enlisted Rust engineers to develop the smart contracts necessary for ezSOL. According to a press release, these contracts will transfer the value generated through restaking directly into ezSOL’s price. Ideally, ezSOL will trade closely with, but at a premium to, SOL, mirroring the pricing dynamics of Jito’s staking token, jitoSOL.

The cultural differences between Ethereum and Solana further complicate this transition. While there is some overlap between the two communities of crypto traders and developers, distinct philosophical beliefs regarding each network’s superiority often fuel rivalry. This cultural divide has previously hindered other blockchain projects attempting to bridge these worlds. A notable example includes Ethereum’s liquid staking leader, Lido, which sought to enter Solana’s staking market but retreated in February after failing to gain traction.

In this context, Renzo, which has established its reputation mainly within the Ethereum restaking ecosystem, faces challenges as it ventures into Solana’s domain. However, Kozinski remains committed to the vision, emphasising the cultural similarities between Renzo and Jito that can foster collaborative synergies. He also highlighted that Renzo is not entering this new landscape in isolation; its product will seamlessly integrate with Jito, one of Solana’s standout startups.

Kozinski concludes by noting the mutual interest that Ethereum and Solana users may have in exploring each other’s ecosystems. He believes that the broader objective should focus on expanding the Renzo user base while leveraging the expertise gained from its year-long development on EigenLayer.

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