Renzo

Renzo project idea

Renzo is an EigenLayer-based liquid restacking protocol on the Ethereum network. It simplifies ETH staking and re-staking by increasing returns through the use of staked assets in Actively Validated Services (AVS). Users receive an ezETH token that can be applied to DeFi, preserving the rewards of steaking. The project automates complex processes and plans cross-chain development.

Where the $REZ token is traded

The $REZ token is a native Renzo management token, launching in April 2024. Main platforms: Binance, KuCoin, MEXC, Gate.io, Bitget

Project investors: Binance Labs, OKX Ventures, Maven 11 Capital, Figment Capital, Dragonfly Capital, IOSG Ventures, Framework Ventures.

How much money was raised from investors: Renzo raised $20.2 mln

OTC deal

We have an opportunity to buy back tokens at a discount and with a short vesting.

Renzo 50% discount to the Coinmarketcap price (price is fixed at the time the deal is signed)

Vesting:
20% 72 hours after signing the deal
30% after 31 days
25% after 62 days
25% after 93 days

What is the plan and why is the deal interesting?

After buying tokens at a discount, each investor can open a short for the size of his investment and thus hedge his risk.

Example calculation (numbers rounded for simplicity) :

Current price $REZ = 1$
OTC price at which we buy $REZ to vest = 0.5$.

An investor buys $1000 worth of REZ tokens at a price of $0.5. Purchase volume: $2,000 $REZ
Then opens a short at the current price (1$) with the volume of 2000 $REZ. This short allows to insure in case of price change while tokens are in vesting.

After 93 days the investor gets all $REZ tokens bought at 0.5$. Let's say the price of $REZ fell to 0.75$. What the investor gets:

Selling $2,000 $REZ at $0.75 = +$1,500.
Closing $REZ shorts with 25% profit = +500$

Bottom line:

Initial investment = $1,000
Fixed after 93 days = $2000
Total net earnings = $1000

Translated with DeepL.com (free version)