Renzo, a platform for trading liquid derivatives built on the EigenLayer protocol, has successfully raised $17 million in a two-stage financing round. The fundraising was primarily driven by Galaxy Ventures and Brevan Howard Digital Nova.

The funds will bolster Renzo’s restaking services, namely by including ERC-20 tokens. Renzo is a platform on the EigenLayer protocol that functions as a liquid derivative.

It acts as an interface to EigenLayer and ensures the security of Application Verification Services (AVS). Additionally, it offers better yields compared to Ethereum. Renzo creates ezETH, a liquid restaking token, by minting an equal quantity for each ETH or liquid staking token that is deposited.

This money will support Renzo in incorporating ERC-20 tokens into its system, aligning with the prevailing practice of restaking. EigenLayer has recently declared that it will now allow its native EIGEN token, which is an ERC-20 token, to be used for securing EigenDA.

The inclusion of additional assets such as EIGEN in the native ETH restaking process allows for the integration of other liquid restaking tokens into ezETH, which is essential for the growth of the restaking market.

Renzo’s Total Value Locked (TVL) has experienced a 13% increase over the past month, signifying its expanding influence.

The additional funding has the potential to enhance EigenLayer’s position in the face of increasing competition. Furthermore, the integration of ERC-20 tokens into Renzo’s protocol is expected to attract a larger user base and enhance its market influence.