Introduction
Chaos Labs’ monthly Renzo Risk Review delivers a comprehensive, data-driven analysis of Renzo’s key metrics, ensuring full transparency over protocol performance and risk exposure for the community. By closely monitoring utilization trends, liquidity dynamics, and yield outcomes, Chaos Labs aims to proactively identify and mitigate emerging risks to safeguard protocol stability.
Performance
In April, ezETH realized an APR of 5.84%, derived from a price increase from 1.042 to 1.047 against ETH over the course of the month. This continued upward trend in APR reflects a stable yield environment for ezETH holders.
Peg deviations remained moderate throughout April. The largest absolute deviation reached 0.238%, while the smallest deviation during the month was 0.0044%.
Despite some fluctuations at the beginning of the month, netflows remained relatively neutral, with inflows and outflows closely balanced. The protocol’s total TVL at the end of April stood at 349k ETH.
Liquidity
The withdrawal buffer remained stable throughout April. While stETH dominated the composition, ETH allocation increased in the latter half of the month, enhancing liquidity flexibility.
Cross-chain liquidity netflows of ezETH varied significantly in April. While liquidity contracted on Optimism, BNB, and Linea, strong growth was observed on Ethereum and Base — the latter experiencing the most substantial increase in both ezETH and exit liquidity.
Exit liquidity underwent a notable transformation driven by a sharp increase in WETH-backed pools. Other assets—including USDC, wstETH, pzETH, and rswETH—remained relatively stable, underscoring a growing reliance on native ETH for facilitating exits.
Composability
In April, ezETH composability remained stable with no major shifts in protocol balances. Aave continued to be the primary venue for ezETH utilization, showing gradual growth throughout the month. Other platforms such as Pendle, Curve, and Balancer maintained relatively flat balances, indicating sustained but steady usage across DeFi integrations.
On Aave, the total borrow against ezETH increased modestly from $287.5M to $296.4M, reflecting a steady rise in borrowing activity. With wstETH remained the overwhelmingly dominant collateral.
Concentration risk remains elevated, with a single address supplying $283.7M in ezETH and borrowing $254.7M in wstETH—representing the vast majority of ezETH activity.
Summary
In April, Renzo maintained strong protocol performance, with ezETH realizing a 5.84% APR and exhibiting only minor peg deviations. Liquidity conditions remained stable, supported by a consistent withdrawal buffer and a notable shift toward WETH in exit liquidity.