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
During June, the ezETH-ETH swap rate showed a steady increase from approximately 1.05 to 1.053, resulting in a realized APR of about 3.06% over the month. This steady appreciation indicates a consistent positive return relative to ETH, underscoring the protocol’s ability to generate yield effectively throughout the period.
In June, the ezETH peg experienced slightly more volatility compared to previous months. The peg ranged roughly between 0.37bps and -15.67bps, confirming modest but measurable discounting during the month.
Throughout June, both collateral inflows and outflows for ezETH declined compared to previous months. This decreased movement suggests a period of lower user engagement, consistent with typical seasonal slowdowns reflecting broader market patterns. Despite the reduction in volume, the net flow remained relatively balanced, indicating no major shifts in the overall collateral supply.
Liquidity
Renzo’s withdrawal buffer remained predominantly composed of stETH, with the total amount held steadily above 15,000 stETH. Meanwhile, the ETH portion of the buffer showed a slight increase, reflecting a subtle rebalancing to maintain sufficient liquidity for withdrawals. Overall, the buffer levels suggest that the protocol continues to manage withdrawal demands efficiently.
Liquidity changes across chains showed distinct directional trends. Ethereum and BNB chains experienced notable increases in ezETH liquidity, indicating growing user preference and stronger engagement on these networks. Additionally, exit liquidity on Ethereum saw a significant increase, reinforcing its role as a primary hub for liquidity exits. In contrast, chains such as Base and Optimism saw declines in liquidity. Unichain experienced a decrease in liquidity as well, dropping from $22.8M to $19.2M.
Over the past months, exit liquidity by token shifted with wETH exit liquidity decreasing noticeably. In contrast, stETH exit liquidity remained relatively stable with minor fluctuations.
Composabilty
ezETH’s integration across DeFi protocols has remained relatively stable with no significant new inflows or withdrawals in major protocols. Aave continues to hold the largest ezETH balance, maintaining a steady position around 180k ezETH. Other protocols such as Curve, Gearbox, and Morpho show minimal fluctuations, indicating stable but limited activity. Overall, the composability of ezETH in the DeFi ecosystem remains consistent, with no major shifts in protocol balances during this period.
Borrowing against ezETH on Aave remained stable throughout June, with total borrow amounts consistently hovering around $400 million. The majority of the borrowing continues to be denominated in wstETH, reflecting steady demand and confidence in using ezETH as collateral for borrowing activities. This stability in borrow levels aligns closely with the previous month, indicating no significant shifts in borrowing behavior or risk exposure from this channel.
The ezETH supply on the Prime market remains concentrated around one dominant actor holding approximately $391 million in ezETH supply. This top supplier’s wallet exhibits a high health factor of 1.05, supported by a large corresponding borrow position in wstETH. Other suppliers have significantly smaller balances, indicating that liquidity provision and associated risk exposure continue to be concentrated in a single major participant.
Summary
In June, ezETH maintained steady performance with a realized APR of about 3.06% and modest peg deviations, indicating stable peg management. Collateral flows slowed in line with seasonal trends, while liquidity incrased on Ethereum.
DeFi integration and borrowing activity on Aave remained stable, with borrowing around $400 million mostly in wstETH, dominated by one major actor. Overall, the protocol remains healthy and well-capitalized, with no material risk signals observed.