Offboarding wbETH Plan

[renzo_admin]

Summary

This proposal outlines an offboarding plan for wbETH as a collateral asset on ezETH. The plan aims to reduce the amount of deposits in wBETH and encourage users to switch to ETH or other LSTs. The plan involves modification of certain risk parameters.

Overview

Renzo onboarded stETH and wbETH as LST collateral in February 2024. The Renzo community has been extremely grateful to the Binance community however in order to build out new integrations for ezETH, it’s no longer viable for Renzo to support wbETH as a collateral asset for ezETH. It’s important to note that wbETH is still one of the most productive assets on the BNB chain and that there will be other opportunities for wbETH to work with Renzo in the future if there’s demand.

Motivation

Renzo has had a 5,000 wbETH caps on deposits since February which hasn’t been hit. Renzo reads the exchange rate from the wBETH smart contract to mint ezETH: 0xa2E3356610840701BDf5611a53974510Ae27E2e1. With >900K+ ETH, wBETH is one of the largest Ethereum LSTs. However, following new integration opportunities for ezETH, we propose offboarding wBETH as an asset.

Renzo would like to express gratitude to all participants and encourage providing valuable feedback during these discussions.

Implementation

Proposed parameter changes;

• Complete withdrawals for any remaining wbETH in the protocol
• Remove wbETH as Collateral Token in RestakeManager
• Remove wbETH Shim from RenzoOracle’s tokenOracleLookup mapping

Discussion Timeline

Per the proposal guidelines, this discussion will be available for 5 days concluding on September 2nd, 2024

Voting

$REZ holders (including $REZ stakers) are encouraged to participate in this proposal.

[Kairos_Res]

We agree with this proposal and think it makes sense to offboard wbETH given all the rationale outlined above.

Following our own analysis, we think the data speaks for itself to justify an off-boarding of the wbETH.

As you can see in the chart below, daily deposits of wBETH were scarce in comparison to ETH itself.

Futhermore, as you can see in the chart below, out of all deposits made to the platform throughout the protocol’s history, wbETH only accounted for 1.3%.

This does however open the question as to whether or not stETH may or may not be offboarded in the future as well, and what may potentially trigger this.

Overall, we thank the Binance community as well for their support, and look forward to more synergistic opportunities to work together again in the future.