Renzo up to date its token allocation to Season 1 factors farmers by 2%.
Renzo, the second-largest liquid restaking protocol with $3.23 billion in TVL, made adjustments to allocations for its forthcoming REZ airdrop following neighborhood pushback and a latest violent depeg occasion.
In an April 24 tweet, Renzo introduced it will transfer the declare date ahead for its airdrop, improve its allocation to Season 1 ezPoints holders, and increase the variety of wallets eligible to say.
Factors holders will now be capable to declare their tokens one hour earlier than Binance Launchpool members on April 30 after initially being scheduled for Might 2, with the tokens allotted to Season 1 of its factors marketing campaign rising to 7% from 5% — additionally upping the tokens earmarked for each seasons of its level marketing campaign to 12% from 10% and its total neighborhood allocation to 32% from 30%. Binance Launchpool will nonetheless obtain 2.5% of the token’s provide.
“The Renzo group acknowledges suggestions and the significance of our neighborhood, who has made Renzo the main restaking protocol,” Renzo mentioned.
Renzo added that wallets holding at the least 360 ezPoints will qualify for the airdrop, that means 99% of factors holders are included within the occasion. Half of the tokens allotted to whales holding greater than 50,000 ezPoints will additionally vest over three months.
Depeg
The information comes after Renzo’s liquid restaking token, ezETH, suffered a violent depeg as farming for the primary season of its factors marketing campaign got here to an in depth earlier on the identical day. EzETH abruptly tumbled greater than 70%, wiping out many degens farming factors by way of leverage within the course of.
Gytis Trilikauskis, the COO of MEV Capital, advised The Defiant that the depeg was fuelled by farmers shifting to dump their ezETH holdings as inaccurate interpretations of the undertaking’s airdrop allocation unfold throughout social media.
“A misunderstanding of the airdrop pie chart of Renzo documentation [informed] threads wrongly mentioning that solely 2.5% of $REZ provide could be given away to early contributors,” Trilikauskis mentioned. “Some ezETH restakers determined to promote ezETH holdings on secondary markets as a response.”
Trilikauskis added that Renzo’s determination to not allow ezETH redemptions till after its token era occasion exacerbated the degen by giving holders searching for to unwind publicity no possibility aside from to promote on secondary exchanges. He famous that the depeg was additional intensified by nearly all of obtainable liquidity residing inside a single pool on the Balancer decentralized alternate.
“If redemptions for ezETH had been already in place, the promoting strain would have been considerably decrease and the peg would have remained intact,” Trilikauskis mentioned.
Renzo is anticipated to allow ezETH redemptions in roughly 4 weeks’ time as soon as ongoing code audits have been accomplished.
Trilikauskis added that MEV Capital stays “absolutely assured” in Renzo’s means to deploy its redemption module, and is now buying ezETH to capitalize on its 2% low cost relative to Ether.
