The challenge
Liquidity is essential for the usability, accessibility, and efficiency of Liquid Staking Tokens (LSTs) and Liquid Restaking Tokens (LRTs). However, a major challenge in DeFi is liquidity fragmentation, making its management cumbersome and inefficient.
Liquidity Providers (LPs) lack a unified, streamlined solution that offers seamless access to liquidity markets. Instead, they must manually select protocols, distribute holdings, and coordinate with other LPs—introducing unnecessary complexity. Additionally, LPs require more incentives and support to efficiently allocate their assets and sustain liquidity provisioning.
Recognizing these challenges, Renzo turned to Enzyme.Blue to develop a frictionless solution, optimizing liquidity management and enhancing support for their Liquid Restaking Token, $ezETH.
The solution
Renzo took advantage of Enzyme.Blue to create an Enzyme Vault, transforming it into a Liquidity Pool designed to simplify liquidity provision for $ezETH holders. This solution provides a straightforward and cost-efficient way to participate in liquidity markets without the burden of manual management.
This solution enables $ezETH holders to deposit their tokens in a single pool, which then distributes liquidity across Uniswap v3 while ensuring rewards are auto-compounded, maximizing incentives for LPs.
Enzyme has been a key partner in this journey, advising on Vault structuring and strategy to bring this innovative solution to life. Additionally, Renzo leveraged Enzyme.Blue to delegate execution strategy to Re7 Labs, streamlining operations and liquidity deployment.
The result
With Enzyme, Renzo has made liquidity provision more accessible, efficient, and rewarding for their community, all while maintaining top-tier security. LPs no longer need to navigate complex liquidity strategies manually, as they can now rely on a unified vault that optimizes liquidity deployment across Uniswap v3.
This approach not only improves capital efficiency but also enhances yield potential through automated reward compounding. Enzyme takes pride in supporting a leading Restaking Provider in expanding its operations and driving growth.
