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Renzo’s ezETH Sees Peg Disruption Next Contentious Airdrop
It was a wild Wednesday for Renzo Protocol’s liquid restaking token, ezETH, as it expert a depeg throughout the controversial REZ native token airdrop.
ezETH underwent a short term drop, reaching as very low as $688 on Uniswap, but anxiety not, as it has due to the fact bounced back again!
The lead to of this occasion appears to be a significant offer-off of ezETH next the summary of the year 1 airdrop on Renzo Protocol.
Just one investor, Tommy from Crypto.com Funds, shared his feelings, stating, “People want to get their ETH again for farming LRT or other protocols.”
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Tommy also highlighted that the depeg incident with ezETH serves as a reminder of the threats affiliated with all LRTs.
This depeg function triggered mass liquidations in leveraged protocols like Gearbox and Morpho Labs, in which people experienced utilized LRT as collateral to borrow ETH.
In accordance to 0xmikko, founder of Gearbox, “115 Credit Accounts had been liquidated, 10,650 ezETH were sold on Balancer pool. Liquidation losses of 25.77 ETH were being instantly coated by inside Gearbox reserve fund, no motion essential.”
Renzo, the next-largest liquid restaking protocol with a TVL of $3.21 billion, has witnessed a 125% raise in TVL over the previous thirty day period, as per DefiLlama info.
Fascination in Renzo Protocol sparked soon after Binance launched the Launchpool application for its native token, Renzo (REZ), on Tuesday. BNB and FDUSD holders can stake for REZ farming until finally April 29 just before REZ’s listing on Binance on April 30.
Renzo earmarked 10% of the total REZ supply for the airdrop, with 2.5% allotted to Binance Launchpool.
Nevertheless, only 5% of the full REZ token provide was distributed in the year 1 airdrop, producing the airdrop allocation on Renzo Protocol 50% larger than on Binance Launchpool.
Specially, 2% of the 5% (or .1% of the total REZ source) was set aside for Milady and SchizoPosters NFT holders in the period 1 airdrop.
The problem turned controversial as Binance’s Launchpool concluded on April 29, making it possible for individuals to trade REZ two times earlier than these farming on Renzo Protocol, who could only claim their airdrop on Could 2.
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Nevertheless, in the most modern update on Thursday early morning, Renzo Protocol declared improvements in the REZ token airdrop declare time and tokenomics. The new claim time is an hour in advance of investing on Binance, and the period 1 airdrop allocation has been improved to 7%.
