Restaking has become a primary function of many on Ethereum. However, there are other options outside of Renzo Protocol. Here I will discuss some of the best Renzo alternatives and take a look at their liquid tokens, supported assets, DeFi Utility, risks, and how their yields are generated. I will review Ether.fi and Kelp DAO and evaluate EigenLayer as well as Symbiotic, Karak Network and BounceBit.
What Is Renzo Protocol?
Renzo Protocol aims to help users reach a better return on stake by providing liquid restaked assets. Renzo Protocol is built on the Ethereum staking infrastructure to provide users with liquid staking tokens. Users of the protocol stake supported tokens and receive liquid staking tokens. The tokens are then used to access other DeFi applications.
The Renzo Protocol provides strategies to manage staking and enables users to connect to various staking services. The protocol provides users with additional ways to gain yield but users of the protocol face a variety of risks including slippage and loss of staked tokens because of smart contract failure.
How to Choose a Renzo Alternative
Supported Assets: Determine the assets that the platform endorses, for instance, ETH, LST, LRT, stable coins, and BTC. See if they align with your preferred strategy for asset stacking.
Restaking Ecosystem: Check if the protocol collaborates with EigenLayer, Symbiotic, Karak, or other comparable networks. Each of these networks vary in the kinds of entities that make up the network, for instance, staking pools.
Token Utility: Assess the restacking token. Check if it is liquid, and if so, check its price, when and how it can be withdrawn, can it be swapped, can it be used as collateral, or can it be provided as liquidity.
Yield: Determine if the projected returns come from staking, restaking, network rewards, DeFi tokens, or other tokens. Determine if the returns are from the project’s own ecosystem, other projects, or from liquidity providers.
Fees: Look at the costs associated with using the service. Compare these costs to the returns you expect. Are there fees for withdrawals, deposits, or management?
Liquidity: Assess how easy it is to enter and exit positions. Think about if there are hard limits on the number of positions that can be liquidated in a given time period, and how long it takes to withdraw staked tokens, among other factors.
Risks: Check if the code has been audited. Determine if there is slashing protection. What if anything, can the project guarantee about the validators. Are there governance locks. What protections are in place to safeguard users’ staked tokens in the event that the project shuts down?
Key Point
| Alternative | Key Point |
|---|---|
| Ether.fi | Leading liquid restaking protocol that offers weETH/eETH and allows users to retain control of validator keys while earning staking and restaking rewards. |
| EigenLayer | The original Ethereum restaking framework that enables users to restake ETH or LSTs to secure Actively Validated Services (AVSs). |
| Kelp DAO | Liquid restaking platform issuing rsETH, supporting multiple liquid staking tokens and EigenLayer rewards. |
| Puffer Finance | Native liquid restaking protocol focused on Ethereum validator decentralization through its pufETH token. |
| Swell Network | Provides liquid staking and liquid restaking through rswETH, combining staking yield with restaking opportunities. |
| EigenPie | Specialized liquid restaking platform for various liquid staking tokens, issuing asset-specific liquid restaked tokens. |
| Symbiotic | Alternative restaking infrastructure that allows protocols to build shared security networks beyond EigenLayer. |
| Karak Network | Universal restaking protocol designed to extend restaking beyond ETH and support a broader range of assets. |
| YieldNest | Liquid restaking platform offering ynLSDe and automated yield optimization across restaking opportunities. |
| BounceBit | Restaking-focused infrastructure that brings Bitcoin and other assets into the restaking ecosystem for additional yield potential. |
1. Ether.fi
Ether.fi utilizes the concepts of liquid staking and EigenLayer restaking to create a protocol that allows users to earn staking rewards and interact with staked assets in ETH 2.0. The protocol currently supports staking of ETH and issuance of liquid staking tokens, e.g. eETH and weETH.
Unlike most staking service providers, Ether.fi provides user control of validator keys, and allows users to delegate staking to a selection of validators. Through EigenLayer, users are able to stake ETH, as well as other liquid staking tokens, to validators, and become part of the ETH 2.0 consensus, while retaining the usage of staked tokens in other decentralized finance services.
eETH and weETH are staking rewards tokens in Ether.fi. A signature feature of the tokens is their high capital efficiency. The tokens are staking reward tokens with additional rewards.
Thanks to integrations with various ETH 2.0 services, users can stake ETH, and earn rewards via EigenLayer. eETH and weETH are tradeable on various decentralized exchanges and users can also opt to withdrawal their staked assets via the Ether.fi protocol.
| Key Point | Overview |
|---|---|
| Core Role | Liquid restaking protocol focused on Ethereum |
| Main Asset | weETH |
| Restaking Model | Native ETH restaking |
| DeFi Focus | Keeps the liquid position usable across supported DeFi markets |
| Reward Structure | ETH staking and restaking rewards |
| Important Differentiator | Non-custodial design and liquid, transferable restaking exposure |
| Article Angle | A major alternative for users seeking liquid ETH restaking with DeFi utility |
2. EigenLayer
EigenLayer is the base layer of the restaking economy on the ETH 2.0. It allows users to perform restakings on ETH and liquid staking derivatives of ETH to provide Actively Validated Services (AVSs). It primarily focuses on bridging Ethereum staking services to other staking services. Some of the staking tokens supported by EigenLayer include rETH, staked ETH, and Lido Staked ETH.
The security model uses Ethereum’s validator set and gives stake delegation via the EigenLayer protocol. Users can stake EigenLayer contracts and get staking rewards and additional rewards from AVS.
This provides users with multiple sources of yield. EigenLayer does not create liquid staked derivatives. Because of this, other protocols have been created on top of EigenLayer to provide liquid staked derivatives such as Renzo, Ether.fi, and Kelp DAO. Users can withdraw their staked ETH when the protocol allows it and when staking conditions on Ethereum permit.
| Key Point | Overview |
|---|---|
| Core Role | Ethereum-based restaking infrastructure |
| Main Function | Extends Ethereum’s economic security to additional services |
| Security Model | Restaked ETH and other supported assets can secure AVSs |
| Ecosystem | AVSs, operators and restakers |
| Reward Source | Service fees/rewards from supported services |
| Important Differentiator | Focuses on shared cryptoeconomic security rather than being only an LRT |
| Article Angle | Useful comparison when explaining the underlying restaking infrastructure |
3. Kelp DAO
Kelp DAO is a protocol that allows users to stake ETH and liquid staked tokens via EigenLayer, provides users rsETH. Because Kelp DAO allows staking of several liquid staked derivatives, users can gain additional staking and restaking exposure without first unstaking their positions.
Kelp DAO provides users with liquid staked ETH which users can use in other DeFi protocols to gain further staking rewards and other yields. This liquid staked ETH, rsETH, can be withdrawn by users through several mechanisms provided by Kelp DAO.
| Key Point | Overview |
|---|---|
| Core Role | Liquid restaking protocol |
| Main Asset | rsETH |
| Primary Ecosystem | EigenLayer |
| User Benefit | Converts restaked positions into a liquid token |
| DeFi Utility | Designed for liquidity and DeFi use |
| Reward Focus | Staking and restaking-related rewards |
| Article Angle | Compare its liquid-token model and DeFi accessibility with Renzo |
4. Puffer Finance
Puffer Finance is a restaking protocol targeting the Ethereum ecosystem, specifically providing liquidity for restaked tokens and decentralized Ethereum validators. Puffer aims to provide Ethereum stakeholders the opportunity to restake in a liquid format. Like other restaking protocols, Puffer Finance provides an avenue to reduce the barrier to validator participation.
In regards to security, Puffer takes a two-tiered approach. The first tier is Ethereum staking, and the second is riskier, yet potentially more rewarding, opportunities on EigenLayer. Like other restaking protocols, to achieve a positive yield, users are incentivized to leave their funds locked for an extended period of time. pufETH can be used throughout DeFi to provide users a means to earn a yield on their pufETH.
From a user’s perspective, the biggest benefit of the Puffer protocol is risk reduction. This is primarily achieved by removing the need to rely on staking derivatives. Timely withdrawal of pufETH is dependent on the user’s validator and the Puffer protocol.
| Key Point | Overview |
|---|---|
| Core Role | Native liquid restaking protocol |
| Main Asset | pufETH |
| Restaking Ecosystem | EigenLayer |
| Architecture | Native restaking through validator infrastructure |
| Reward Sources | Ethereum staking and restaking rewards |
| Security Focus | Anti-slashing and validator infrastructure |
| Article Angle | Highlight its native-restaking architecture and security mechanisms |
5. Swell Network
Swell Network is a liquid staking and liquid restaking service in the Ethereum staking exchange. Swell Network’s main products are swETH and rswETH. Swell provides customers a chance to experience Ethereum staking, validate blocks, and earn staking rewards, and also provides customers opportunities to utilize restaking services to increase rewards.
Liquid staking and restaking services provided by Swell Network allow customers to retain liquidity. Similar to other staking services, customers of Swell Network can utilize rswETH to gain staking rewards, however, rswETH can also be utilized in different finance services to gain other rewards.
The security model of Swell Network utilizes the staking economy of Ethereum, and combines it with a restaking economy. Customers of Swell Network have the opportunity to gain staking rewards and also utilize the rewards to gain additional rewards through the restaking economy.
Compared to staking services, Swell Network offers increased liquidity to customers through its model. Generally, customers are able to gain liquidity through a centralized exchange.
| Key Point | Overview |
|---|---|
| Core Role | Ethereum staking and liquid restaking platform |
| Main LRT | rswETH |
| Restaking Ecosystem | EigenLayer |
| Liquidity Model | Liquid ERC-20 restaking token |
| DeFi Focus | Lending, DEX liquidity and other DeFi integrations |
| Additional Asset | swETH as its liquid staking token |
| Article Angle | Compare its LST + LRT ecosystem and DeFi composability |
6. EigenPie
EigenPie is a liquid restaking platform focused on restaking liquid staking tokens. Other liquid restaking protocols issue a single liquid restaked asset to their users. EigenPie, on the other hand, issues users individual liquid restaked representations for the liquid staking tokens supported by EigenPie. Users are thus free to choose the representations they want to hold.
Users of the EigenPie protocol are incentivized to stake their liquid staking assets on the EigenLayer network. Consequently, the users also earn liquid staking asset-related staking rewards. Because the security of users’ staked assets is guaranteed, the users are free to use the liquid staked assets in the DeFi space. Users can also opt to unstake their liquid staked assets.
| Key Point | Overview |
|---|---|
| Core Role | Liquid restaking-focused product from Magpie |
| Main Concept | Aggregates restaking exposure through liquid restaking assets |
| Ecosystem Connection | EigenLayer-focused restaking ecosystem |
| Token Exposure | Includes assets such as mswETH, mstETH and mwBETH in connected infrastructure |
| User Focus | Restaking exposure and additional ecosystem rewards |
| Important Comparison | Look at supported LSTs/LRTs and reward mechanisms |
| Article Angle | Useful alternative for readers comparing diversified restaking exposure |
7. Symbiotic
Symbiotic is an infrastructure protocol for restaking that is used for liquid staking. Similar to EigenLayer, Symbiotic offers users liquid staking services. However, Symbiotic focuses on establishing a framework for economic security for other networks and protocols. Liquid staking protocols like Renzo have integrated Symbiotic for their pzETH product.
This protocol provides flexible security features and lets users create bespoke staking and unstaking facilities. Users can experience yield farming opportunities offered by different networks and services integrated with Symbiotic.
Liquid unstaking facilities may be offered by ecosystem projects by creating corresponding tokens. Being a layer-1 infrastructure network, Symbiotic may offer yield farming opportunities by integrating farming and staking related smart contracts.
| Key Point | Overview |
|---|---|
| Core Role | Permissionless restaking infrastructure |
| Main Structure | Vault-based collateral system |
| Supported Model | Networks can use deposited collateral for economic security |
| Flexibility | Vaults can be configured around specific collateral assets |
| Participants | Stakers, networks and operators |
| Important Differentiator | Permissionless and modular restaking architecture |
| Article Angle | Compare its infrastructure model with Renzo’s liquid-restaking approach |
8. Karak Network
Karak Network aims to be the first cross-chain restaking hub beyond Ethereum staking. It aims to build a restaking framework to cover more assets and services. Some recent articles have covered Karak in conjunction with Symbiotic and EigenLayer to give an overview of the developing restaking ecosystem.
Just like other restaking services, users of Karak may get access to various yield farming and staking opportunities and may get rewards in different networks.
Depending on the assets, users may have to lock up their tokens for a certain period. Users may get liquid and DeFi related services by integrating different projects in the ecosystem.
| Key Point | Overview |
|---|---|
| Core Role | Universal restaking and security infrastructure |
| Core Concept | Multi-asset restaking |
| Supported Exposure | ETH, LSTs, LRTs, stablecoins and other assets |
| Security Consumers | Distributed Secure Services (DSSs) |
| Architecture | Multi-asset economic security |
| Important Differentiator | Broader asset support beyond ETH-based restaking |
| Article Angle | Compare its multi-asset model with Renzo’s ETH-centric liquid-restaking exposure |
9. YieldNest
YieldNest is a restaking protocol that provides users with various products to participate in restaking and yield farming activities in the Ethereum network. The products are in liquid form, meaning users can maintain liquidity of their staked tokens. YieldNest is one of the protocols in the liquid restaking sector and focuses on giving users of DeFi services and products with minimum capital lock-up.
Yield models incorporate staking rewards with other incentives from restaking. Users are given liquidity tokens to use in DeFi. The security of the product is related to the staking and restaking infrastructure.
The product represents the stakes in an underlying asset using a security token. Circulating liquidity is greater than the value of the staked asset. The product allows for flexibility in when stakes are cashed out based on the protocol and the market conditions.
| Key Point | Overview |
|---|---|
| Core Role | Liquid restaking and yield-optimization protocol |
| Product Family | MAX LRTs |
| Asset Coverage | ETH, BTC, BNB and USD-focused strategies |
| Strategy Model | Combines multiple underlying restaking and DeFi strategies |
| Automation | Dynamically allocates across supported strategies |
| Main Differentiator | Broader multi-asset and strategy-based approach |
| Article Angle | Useful for comparing automated yield optimization with Renzo’s model |
10. BounceBit
BounceBit aims to extend restaking to other blockchains, especially those related to Bitcoin. By doing so, the project makes currently stagnant Bitcoin-related assets restatable and increases the yield potential of Bitcoin.
The product offers a combination of asset staking and restaking to reward users with additional stakes. The product uses token representation to maintain the users’ stakes in an underlying asset.
The restaking and staking infrastructure of the product determines its security. The product primarily relies on the supporting DeFi infrastructure for liquidity. Security of users’ stakes varies by asset. Restrictive withdrawal policies determine the settlement of users’ stakes.
| Key Point | Overview |
|---|---|
| Core Role | Bitcoin-focused staking and restaking infrastructure |
| Main Asset | BBTC |
| Asset Focus | Bitcoin |
| Restaking Model | Bitcoin-based liquid staking and restaking |
| Security Applications | BTC Bridge, oracles, data availability and other infrastructure |
| Important Differentiator | Extends the restaking concept beyond Ethereum |
| Article Angle | Useful cross-ecosystem alternative for comparing BTC and ETH restaking |
Which Renzo Alternative Fits Which Use Case?
Liquid ETH Restaking: Users can find several options for liquid restaking in the DeFi space. These let users stake and restake in a way that keeps their staked funds in a composable, hierarchical, and flexible format.
Improving Ethereum Security: EigenLayer is more for users wanting to integrate their funds with Ethereum security and infrastructure. This is ideal for users wanting to integrate their funds with ethereum staking and infrastructure.
Multi-Asset Restaking: Karak can give users staking and restaking access to a variety of assets beyond ETH.
Customizing Restaking Infrastructure: Symbiotic provides users access to flexible restaking. This is ideal for users wanting to secure their funds with different cryptographic keys and work with different blockchains.
Bitcoin Restaking:BounceBit gives users the ability to integrate their Bitcoin with staking and restaking pools, and use Bitcoin to access other services.
Automated Strategies: YieldNest offers users access to a variety of investment strategies. Users can also combine different staking and restaking pathways.
Liquid Restaking DeFi: Ether.fi and other similar platforms, offer users staking and restaking pathways in the form of liquid tokens.
Conclusion
Liquid Restaking, shared security and yield farming are the selling points of Renzo Protocol alternatives. Ether.fi and other protocols on this list focus primarily on liquid restaking. Symbiotic and EigenLayer offer more general restaking.
Multi-asset restaking is offered by YieldNest and Renzo. BounceBit offers restaking for Bitcoin. Investors should consider the ecosystems and supported assets before considering headline yields of these protocols.
Other factors should be withdrawal charges, how secure the investment is and liquidity. Finally, the best option for an investor is the one that most closely fits their individual preferences.
FAQ
What are the best alternatives to Renzo Protocol?
Popular alternatives include Ether.fi, EigenLayer, Kelp DAO, Puffer Finance, Swell Network, EigenPie, Symbiotic, Karak Network, YieldNest, and BounceBit. Each uses a different restaking or liquid-restaking approach.
Is EigenLayer similar to Renzo Protocol?
EigenLayer and Renzo are related but serve different roles. EigenLayer provides restaking infrastructure and shared security, while Renzo provides liquid restaking products that give users liquid exposure to restaked assets.
Which Renzo alternatives support liquid restaking?
Ether.fi, Kelp DAO, Puffer Finance, Swell Network, and other protocols provide liquid-restaking products. Their supported assets, liquid tokens, underlying networks, and DeFi integrations differ.
What is the difference between Renzo and Karak Network?
Renzo primarily provides liquid restaking exposure, while Karak focuses on multi-asset restaking and economic security. Karak supports a broader range of collateral types across its restaking infrastructure.
Is Symbiotic a Renzo alternative?
Symbiotic can be considered an alternative at the restaking-infrastructure level. Its permissionless, modular vault architecture allows networks to use deposited collateral for economic security.
