Is Renzo Safe?
Risk Grade: C (46/100)
Renzo is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Moderate risk — large-scale restaking with proven depeg history. The April 2024 crash showed exactly how liquidation cascades unfold at scale
A liquid restaking protocol that gives you ezETH tokens representing your ETH earning extra yield through EigenLayer. It holds $3.3B in deposits and raised $25M. Its C grade is driven by a proven depeg disaster -- in April 2024, ezETH crashed to 0.2 of its ETH value, triggering $65M+ in forced sell-offs across DeFi.
TVL
$369M
Mechanisms
7
Interactions
5
Value Grade
D-
Key Risks for Renzo Users
ezETH already crashed to 20% of its fair value in April 2024, wiping out $65M+ in leveraged positions across multiple lending platforms
Withdrawals take days during market stress. If you need to sell fast, you are stuck selling at a discount on open markets
The team picks which services your ETH is staked on. If they choose poorly and a service gets penalized, all ezETH holders share the loss
Top Risk Factors
- •ezETH depeg history — April 2024 depeg to 0.2 ETH ratio triggered $65M+ in cascading liquidations across DeFi
- •LRT leverage loops on lending platforms create CDO-like risk layering with liquidation cascade potential
- •Dependence on EigenLayer AVS slashing mechanics introduces inherited systemic risk
Risk Score Breakdown
Renzo's highest risk area is Interaction Severity (14/20). Here's how each dimension contributes to the overall 46/100 score:
Read the Full Renzo Risk Report
This protocol has 2 collapse scenarios. 1 critical and 3 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
View Full Report →Considering an investment?