Renzo Restaked ETH (ezETH) serves as the Liquid Restaking Token (LRT) within the Renzo Protocol. It represents a user's restaked position and is designed as a reward-bearing token. Participants in the protocol can stake native ETH or liquid staking tokens (LSTs) such as wBETH and stETH. In return, they receive ezETH, which has the potential to increase in value through yield enhancement within Actively Validated Services (AVSs).

ezETH operates similarly to cTokens, with rewards stemming from the underlying restaking positions. These rewards are reflected in the value of ezETH and are typically composed of ETH, USDC, and AVS reward tokens. As ezETH accumulates more rewards in AVS tokens, its value is expected to appreciate relative to the underlying LSTs. Unstaking generally requires at least seven days due to EigenLayer's requirements; however, this period may vary based on each AVS.

In scenarios where deposits and withdrawals are balanced, rewards are distributed evenly, regardless of the asset withdrawn. If there is an imbalance, the principal amount is withdrawn, and rewards differ for each asset, encouraging balance based on the jump rate model.

ezETH depeg