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
Despite two periods of broader market stress, ezETH continued to deliver consistent yield throughout March, realizing an APR of 4.39% over the month.
The maximum deviation from peg in March was limited to - 25.1 bps with the smallest recorded deviation -2.77. These figures reinforce the protocol’s ability to maintain stability even during high-volatility events, a key risk indicator for any liquid staking asset.
| Price Deviation in March (bps) | |
|---|---|
| Mean | -10.45 |
| Median | -8.6 |
| Highest | -2.77 |
| Lowest | -25.18 |
Renzo maintained a substantial TVL of 341,000 ETH, across all of its assets, reflecting continued user trust. ezETH TVL saw a slight decrease over the month, dropping from 319,515 ETH to approximately 307,000 ETH. Net flows over the period were close to zero, indicating a stable balance between deposits and withdrawals. Short-term shifts in TVL were aligned with broader deleveraging patterns across the restaking space, not isolated risks specific to Renzo.
Liquidity
Over the course of March, Renzo’s withdrawal buffer increased significantly. On March 1st, the buffer held 7,179 stETH and 4,237 ETH. By March 28th, these balances had grown to 22,136 stETH and 7,277 ETH, respectively. This expansion in both assets enhances the protocol’s capacity to support user withdrawals and adds an additional layer of stability.
Over the past 30 days, ezETH liquidity declined across all major chains, with the steepest drops on Base (-79.4%) and BNB (-51.3%). Exit liquidity also trended downward, most notably on BNB with a 63.3% decrease, while Base saw only a slight reduction (-3.9%). Arbitrum stood out as the only chain to record an increase in exit liquidity, rising by 16.3%, suggesting a shift in redemption activity to that network.
Notably, exit liquidity in wETH increased from 2,989 to 3,885, and exit liquidity in USDC nearly doubled from 1,030 to 2,131, signaling growing multi-asset support for redemptions. Meanwhile, wstETH slightly decreased from 1,136 to 899, indicating some rotation in preferred liquidity assets.
Composabilty
Holdings on Aave increased slightly over the month from $350.08M to $356.63M, reinforcing its role as the primary platform for ezETH activity.
Other integrations saw marginal declines, including Balancer’s ezETH/WETH pool, which decreased from $8.52M to $8.06M, and Zircuit, which dropped from $9.19M to $8.54M. Usage on Morpho, Pendle, and Gearbox also saw reductions, while activity on smaller platforms like Uniswap and Silo remained minimal.
No ezETH-related liquidations occurred, underscoring the low-risk profile of current positions.
However, a significant concentration risk persists, with a single depositor accounting for 77.7% of ezETH deposits on Aave and 79.7% of the corresponding borrowings in wstETH. This remains an important factor for ongoing risk monitoring.
Summary
Renzo remained stable throughout March, with consistent yield performance, minimal peg deviations, and balanced net flows. Liquidity buffers strengthened significantly, improving the protocol’s capacity to handle withdrawals. DeFi integration remains deep, with Aave continuing to lead. While no liquidations occurred, concentration risk on Aave remains a key factor to monitor. Overall, the protocol continues to show resilience amid broader market deleveraging.