Renzo Protocol’s EZETH Faces Price Depeg Following End of Airdrop Campaign

Renzo Protocol’s restaked Ether token, EZETH, skilled a big worth depeg on April 24, inflicting a brief drop in its worth on the Uniswap decentralized change.

Situations of depegging incidents like this have grow to be a standard problem for LRTs. The non permanent imbalance in DEX swimming pools can result in a depeg, even when withdrawals are enabled. This depegging occasion resulted in important liquidations on leveraged platforms equivalent to Gearbox and Morpho Labs, the place customers who repeatedly make the most of LRTs as collateral for borrowing ETH confronted substantial losses.

Renzo Protocol is at the moment the second-largest liquid restaking protocol, with a complete worth locked (TVL) of over $3.3 billion, representing a 126% improve previously month. The biggest liquid restaking protocol is Ether.fi, with a TVL of over $3.9 billion, in accordance with DefiLlama.

Renzo Protocol has gained appreciable consideration lately, significantly after its incoming token, REZ, was added to the Binance launchpool on April 23. On the identical day, the protocol introduced an incoming airdrop, allocating 10% of its token distribution to season 1 individuals.

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