Renzo, one of the largest LRTs with over $600 million TVL, has gone live as a delegator on Cap.
This is a first-of-its-kind deployment where Renzo uses pzETH, to underwrite on-chain borrowing for institutional market makers and liquidity providers on Cap.
What this means for pzETH holders:
- Renzo provides the economic security layer behind the position.
- Institutional risk premiums are captured and auto-compounded directly into pzETH.
- pzETH holders are protected via offchain legal agreement
- No staking. No claiming. No gas.
This deployment is made possible by Symbiotic, the shared security coordination layer that enables restaked assets like pzETH to be programmatically delegated to specific economic activity.
Symbiotic provides the infrastructure that allows pzETH to be precisely scoped, transparently monitored, and credibly enforced as economic security, ensuring that institutional counterparties can rely on it while preserving strict risk isolation for holders. Symbiotic enables purpose-built delegation, aligning risk, reward, and accountability at the asset level.
Why is this deployment Important to Cap?
For pzETH holders, this marks a fundamental shift in how their asset generates value.
Historically, restaking rewards have often resembled a dangling carrot: points programs, future token incentives, or protocol-native emissions dependent on inconsistent variables and long-term assumptions.
With Cap, pzETH is plugged directly into real economic demand: institutional counterparties willing to pay a premium for onchain liquidity that is sourced transparently and fully protected.
This deployment transforms pzETH from passive security into a productive asset.
Rather than securing protocols or activities that may or may not monetize in the future, pzETH underwrites activity that already exists today: institutional yield generation. The premium from that activity is captured directly at the asset level. This is possible because the yield is:
- Exogenous — not paid via dilution, emissions, or token incentives
- Market-priced — set by a three-sided marketplace, not human discretion
- Automatically reflected — compounding directly into pzETH’s value
Crucially, this happens without changing the user experience. pzETH holders don’t need to opt in, manage positions, or take on additional operational complexity. The mechanics are fully abstracted at the protocol layer, while the benefits accrue natively to the asset.
Conclusion
Beyond the onchain guarantees, the issuer of pzETH, Renzo, reinforces holder protection by entering into a legal agreement with the operator. This gives Renzo the ability to take real-world action should anything go awry, adding an additional layer of recourse beyond smart contracts alone.
With Symbiotic acting as the platform, Renzo’s pzETH as the asset, and Cap acting as the catalyst, this is what restaking is meant to become: the coordination layer for high-value economic activity, where risk is explicitly underwritten, premiums are transparently earned, and rewards flow back to the parties providing security all while helping DeFi scale in a sustainable, institutionally credible way.
Renzo Protocol 