How profitable is restaking?

[notBradPit]

I think at this point when you hear of Eigenlayer or weETH you automatically think of liquid restaking. If you don't know liquid restaking is just a way of staking that ensures more rewards from ETH staking. One question I do have is, how profitable is restaking? For the average user that's not a whale, what are the returns like and is it better than normal staking. I know some people do make money off the native restaking tokens like eETH or weETH but how is the platform itself?

[rdluffy]

Each platform has different yields, there is no single rule or percentage
For example, on Renzo, which is the one I use, the APY is 7.3% right now


Source: https://app.renzoprotocol.com/restaking

You can compare Renzo, Swell, Etherfi etc

[erus]

Each platform has different yields, there is no single rule or percentage
For example, on Renzo, which is the one I use, the APY is 7.3% right now


Source: https://app.renzoprotocol.com/restaking

You can compare Renzo, Swell, Etherfi etc

I also don't really understand how this restaking works so I have to check and think several times on the Renzo Protocol website.
You said that the APY is 7.3% but now I see it around 2.94% APY, are the rewards dynamic and changing all the time?
This ezETH is Ethereum L1 compared to the Renzo chain, isn't that right?

[rdluffy]

...

I also don't really understand how this restaking works so I have to check and think several times on the Renzo Protocol website.
You said that the APY is 7.3% but now I see it around 2.94% APY, are the rewards dynamic and changing all the time?
This ezETH is Ethereum L1 compared to the Renzo chain, isn't that right?

They have an algorithm to calculate the APY


Source

ezETH is the token you receive when you deposit on Renzo
If you deposit 1 ETH you'll receive 0,97322 ezETH (this is the price right now), and this ezETH is something we call LST, liquid restake token
This is a token to proof that you deposited on Renzo, and you can use this LST on another DeFi protocols, to earn even more if you want

If you have more questions, you can ask me, I know the concept is not easy to understand 

[erus]

...

I also don't really understand how this restaking works so I have to check and think several times on the Renzo Protocol website.
You said that the APY is 7.3% but now I see it around 2.94% APY, are the rewards dynamic and changing all the time?
This ezETH is Ethereum L1 compared to the Renzo chain, isn't that right?

They have an algorithm to calculate the APY


Source

Thank you for this information and it turns out that the APY is fluctuating, isn't it?
For example:

If I deposit ETH L1 to Renzo Protocol then select restaking and at that time the APY is 7.2%.
But in the next few days the APY changes to 2.92%, then the result for the rewards that I have is following the updated APY, which is 2.92%, isn't that right, friend?

ezETH is the token you receive when you deposit on Renzo
If you deposit 1 ETH you'll receive 0,97322 ezETH (this is the price right now),

Why is it not balanced between ETH L1 deposit to ezETH?
The difference is also quite large, around 0.037 ETH and that is equivalent to 113 dollars at the moment.

and this ezETH is something we call LST, liquid restake token
This is a token to proof that you deposited on Renzo, and you can use this LST on another DeFi protocols, to earn even more if you want

If you have more questions, you can ask me, I know the concept is not easy to understand 

LST or liquid retake token, it turns out I just found out the system is like this:

1. We deposit ETH L1 to Renzo Protocol
2. We get 0.97322 ezETH
3. We can use LST or 0.97322 ezETH to various platforms that work with Renzo Protocol.