Introduction
Each month, Chaos Labs delivers comprehensive, data-driven analysis of Renzo’s key metrics, ensuring full transparency for the community. By closely monitoring utilization trends, liquidity dynamics, and borrower behaviors, Chaos Labs aims to proactively identify and mitigate emerging risks to maintain protocol stability.
Performance
In February, ezETH continued to appreciate steadily against ETH, increasing from 1.07082 at the start of the month to 1.07291 by month-end. This represents a monthly increase of approximately 0.195%, implying a realized APR of around 2.3% for the period.
Throughout February, ezETH traded consistently at a discount to ETH. The largest absolute deviation reached approximately 0.347% on February 7, while the smallest deviation narrowed to nearly flat at approximately 0.001% on February 28. Overall, the discount compressed toward month-end, indicating improving liquidity and stronger peg stability relative to earlier periods in the month.
In February, ezETH liquidity pools experienced sustained net outflows, with multiple consecutive days of negative net flow driving TVL down from 212k ETH to 193k ETH.
Liquidity
In February, Renzo’s withdrawal buffer remained composed of ETH and stETH, with balances fluctuating throughout the month. At the beginning of the period, the buffer was primarily held in stETH (~19.3K), while ETH balances were relatively limited. Mid-month, ETH levels temporarily declined to low single-digit thousands before rebuilding toward month-end, closing at ~12.6K ETH alongside ~6.0K stETH. Overall, the buffer composition shifted dynamically between ETH and stETH, maintaining withdrawal capacity despite volatility in balances.
In February, ezETH DEX liquidity declined modestly across chains. Linea continued to account for the majority of liquidity. Ethereum mainnet liquidity remains below recommended thresholds and would benefit from both an increase in absolute depth and broader distribution across additional venues.
Composability
In February, ezETH composability remained concentrated in lending protocols, with Aave and Compound continuing to account for the majority of deployed balances. Aave balances declined from ~74.0K ezETH at the beginning of the month to ~69.5K ezETH by month-end, reflecting moderate deleveraging, while Compound decreased more materially from ~39.5K to ~29.3K ezETH. Smaller integrations, including Fluid and Morpho Blue, remained relatively stable but represent a minor share of total utilization.
Borrowing activity against ezETH declined across both the Core and Prime markets throughout February. The asset mix remained largely unchanged, with wstETH continuing to represent the dominant borrowed asset. Total borrow balances trended lower over the month, reflecting a combination of reduced utilization and broader market-driven valuation effects.
Ethereum-Core
Ethereum-Prime
On Ethereum-Core, the same dominant suppliers remain in place, with similar relative sizing between the largest long and short exposures. While absolute balances have fluctuated modestly, overall concentration among the top accounts remains comparable to the prior month. On Ethereum-Prime, the top supplier continues to account for the majority of exposure, with secondary accounts remaining relatively small. The distribution profile is materially similar to last month, indicating stable though still concentrated supplier dynamics.
Ethereum-Core
Ethereum-Prime
Summary
In February, ezETH maintained steady yield generation, delivering a ~2.3% realized APR. Although ezETH traded at a persistent discount for most of the month, the peg discount narrowed toward month-end, signaling improving secondary market liquidity. However, liquidity remains concentrated on Linea, with Ethereum mainnet depth below recommended levels.
Sustained net outflows led to a material decline in TVL from 212K ETH to 193K ETH. This contraction was accompanied by moderate deleveraging on Aave, where ezETH balances declined as borrowing activity softened across both Core and Prime markets. Despite the decline in deployed capital, market structure remains orderly and the protocol shows no signs of acute stress.