Add ezETH Markets to Moonwell on Base

Proposals Community Proposal
1

Category: Community Proposals 3

Description:

Renzo is a strategy manager and liquid restaking token provider for both EigenLayer and Symbiotic. Renzo’s $ezETH and $pzETH serve as the interface to the EigenLayer and Symbiotic ecosystems, respectively. The mission of $ezETH and $pzETH is to secure Actively Validated Services and generate both staking and restaking rewards.

Renzo was first launched as an LRT on EigenLayer just over 7 months ago. In that time, Renzo has received billions of dollars in TVL, integrated with over 130 DeFi protocols, and has a presence on eight Ethereum rollups, including Base.

Renzo makes restaking ez for users. It abstracts away node operation, strategy management, and smart contract interfacing to simplify the restaking process, and makes the funds locked up in restaking liquid in ERC-20 form.

Benefits to the Moonwell Community:

This proposal seeks to introduce ezETH as a supported asset on Moonwell on Base. It aims to leverage the innovative features of this reward bearing liquid restaking token to enhance the lending and borrowing ecosystem, provide further diversified collateral options, and foster greater liquidity and user engagement within the Moonwell Protocol.

Users will accrue ezPoints and EigenLayer points for their active positions deposited within the protocol.

With the demand for LRTs as an asset class in the current DeFi landscape along with Renzo’s pioneering focus on integrations, distribution, and chain expansion, pursuing a listing for $ezETH on Moonwell is a no brainer and top priority for the protocol’s growth strategy. We take great care to foster and cultivate relationships with our partners and their communities. We view this as a significant long term collaboration and we expect Moonwell to be one of Renzo’s top integration partners moving forward.

Resources:
Website: https://www.renzoprotocol.com/

Documentation: Overview | Renzo Protocol

GitHub Public Repo: Renzo-Protocol · GitHub

Renzo DeFi integrations: DeFi | Renzo

Discord: Renzo

Twitter: x.com

Proposal Author’s Contact Information:

kratik@renzoprotocol.com

Relationship between the Author and the Token:

Founding Contributor

Social Media Metrics:

Twitter: 110k

Discord: 57k

Community Activity: Active

Market Risk Assessment

Market Cap: $1,673,499,392

Total Supply: 503,251 ezETH

Exchanges and Liquidity:

Centralized Exchanges: N/A

Decentralized Exchanges:

  • Balancer: $36m (Link)
  • Curve: $5m (Link)
  • Uniswap: $2.5m (Link)

Base Specific Liquidity:

Total Supply: 1,234 ezETH

Aerodrome:

  • ezETH / wETH (Concentrated Stable): $3m
  • ezETH / wETH (Stable): $772k
  • ezETH / wETH (Volatile): $171k

Volatility (30 days, 90 days, 1 year):

ezETH Premium/Discount vs ETH can be viewed here:

https://dune.com/Henrystats/premium-discount-market-value?Interval+in+Days_n17bf3=365

Average Daily Trading Volume: $28,738.061

Gini Coefficient and Herfindahl Index: N/A

Emission Schedule:

There is no emissions schedule. ezETH is the liquid restaking token representing a user’s restaked position at Renzo. Users can deposit native ETH or LSTs and receive ezETH.

Decentralization

Top 10 Token Holders and Percentages:

Privileged Roles in the Token Contract:

Ownable - controlled via Renzo 3 of 5 multisig - Owner can configure bridge mint/burn limits

Minting and Burning - Role granted to Bridge contracts for Mint/Burn model with Daily Limits (Hyperlane + Connext Bridges)

Is the Token Pausable?: No

Does the Token Have a Blacklist?: No

Smart Contract Risks

Codebase & Onchain Activity:

Github Repository: Renzo-Protocol · GitHub

Verified Contracts: $3,232.17 | RenzoRestakedETHezETHTokenTracker|BaseScan

Age of the Token: 118 days

Number of Transactions: 70,511

Security Posture:

Audits Performed: contracts-public/Audit at master · Renzo-Protocol/contracts-public · GitHub

Active Bug Bounty Program: Yes

Emergency Contacts and Availability:

We are a fully decentralized team in multiple time zones around the world that are able to provide 24/7 support.

Upgradability:

Is it Upgradable?: Yes

  • Who is authorized to make an upgrade: Renzo 3 of 5 Multisig
  • Time-lock delay for upgrades: No
  • Components upgradable: Token contract implementation
  • Upgradeability and management:
  • Event emission on implementation update:
    event Upgraded(address indexed implementation);

Oracle Assessment:

Chainlink Oracle Price Feed Address:

0xC4300B7CF0646F0Fe4C5B2ACFCCC4dCA1346f5d8

Is the Asset Wrapped, Staked, or Synthetic?:

  • How is the asset wrapped, staked, or created?: Staked in EigenPods
  • Network of the Underlying Asset: ETH
  • Verification of the Minted Asset vs Locked Asset: N/A
  • Proof of Reserves (PoR) Verification: N/A
  • Price Deviation Analysis: https://dune.com/queries/3618648/6097003
  • Events Causing Price Depegging: With use of the Chainlink NAV exchange rate that pulls the redemption price, depegging is mitigated.
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Invitation to Reconsider Adding ezETH Markets to Moonwell on Base

Dear Moonwell Community,

We invite you to reconsider the proposal to add ezETH (Renzo) markets to Moonwell on Base. After reviewing the Renzo Protocol documentation, we believe there are compelling reasons and additional terms that strengthen the case for this integration.

Key Points from Renzo Documentation:

  • Synthetic ETH Stability: ezETH is designed to maintain a stable value, providing users with a reliable synthetic ETH token for decentralized finance (DeFi) activities.
  • Delta-Hedging Mechanism: The protocol uses delta-hedging to stabilize ezETH, ensuring it closely tracks the value of ETH while minimizing volatility.
  • Governance and Security: Renzo Protocol incorporates robust governance mechanisms and has undergone multiple security audits to ensure the safety and reliability of its smart contracts.
  • Cross-Chain Compatibility: ezETH is designed for seamless interaction across various DeFi platforms, promoting interoperability and enhancing liquidity.
  • Savings Opportunities: ezETH holders can participate in the Renzo Savings Rate program, earning rewards in a decentralized, non-custodial manner.

Revised Proposal Benefits:

  • Enhanced Synthetic Asset Liquidity: Adding ezETH will expand Moonwell’s synthetic asset offerings, creating more lending and borrowing opportunities and making Moonwell the largest source of multiple synthetic assets in the market.
  • Increased User Engagement: Integrating ezETH will attract users from the Renzo Protocol ecosystem, including those looking to leverage the Renzo Savings Rate for stable returns.
  • Decentralization and Security: ezETH represents a permissionless, non-custodial alternative that aligns with the principles of decentralized finance, backed by surplus collateral and robust security measures.
  • Effortless Integration: The integration of ezETH into Moonwell requires no new code development, as all necessary functionalities and mechanisms are already in place within our existing infrastructure.

We believe that adding these details from the Renzo documentation further strengthens the proposal and highlights the significant benefits for the Moonwell community. We invite the community to review and discuss this revised proposal to ensure its success and alignment with our shared vision for a secure and decentralized onchain financial future.

Thank you for your time and consideration. We look forward to your feedback and support.

Best regards, AzgardAdmin Moonwell Community Member
Delegate 0xC4c1e942c6B97EE736d15E6edE71dBc323200c3d