Renzo

Renzo receives a C risk grade (46/100) from Hindenrank, where lower scores indicate lower risk. 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.

The key risks identified for Renzo are: (1) ezETH already crashed to 20% of its fair value in April 2024, wiping out $65M+ in leveraged positions across multiple lending platforms (2) Withdrawals take days during market stress. If you need to sell fast, you are stuck selling at a discount on open markets (3) 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

Renzo scores 46/100 across eight risk dimensions: Mechanism Novelty: 0/15, Interaction Severity: 14/20, Oracle Surface: 5/10, Documentation Gaps: 3/10, Track Record: 10/15, Scale Exposure: 5/10, Regulatory Risk: 2/10, Vitality Risk: 7/10. The highest risk area is Interaction Severity at 14/20.

Among 81 rated Liquid Staking protocols on Hindenrank, Renzo ranks #78 by safety (lowest risk score = safest). Its 46/100 risk score and C grade place it among the riskier Liquid Staking protocols.

Renzo scores 10/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.