Proposal for Continued Engagement with Chaos Labs
Overview
In alignment with the quarterly payment structure outlined in the previously approved proposal, Chaos Labs is submitting this request for the next payment installment to support ongoing risk management services for the Renzo DAO. Over the last quarter, Chaos Labs has delivered significant advancements and impactful work in line with the objectives detailed in the initial engagement.
Deliverables and Progress Summary
Public Deliverables
- Rewards Harvesting Research: Chaos Labs, in collaboration with Renzo stakeholders, conducted an in-depth analysis of reward distribution strategies for the Renzo Protocol. Given the current state of restaking—where rewards are primarily in the relatively liquid EIGEN token—and Renzo’s expected short-term rewards profile, the protocol has adopted a conservative approach by temporarily compounding rewards into ETH while exploring alternative distribution methods.
Deliverables in Progress
- AVS Risk Measure: We’re finalizing a novel AVS risk measure. This innovation is a critical input for the AVS allocation methodology co-developed with Renzo. The methodology enhances allocation efficiency while minimizing risk exposure.
- Liquidity Buffer Modeling: We have developed a detailed liquidity buffer model tailored for the Renzo ecosystem. This model provides actionable recommendations to maintain adequate liquidity, supporting protocol solvency under varied market conditions.
Ongoing Development
- Protocol Risk Alerts: Chaos Labs is actively working on a set of protocol risk alerts. These alerts will enable the Renzo DAO to proactively identify and mitigate risks, ensuring system stability and resilience.
Proposed Continued Scope of Work
In the coming quarter, Chaos Labs will focus on:
- Finalizing and operationalizing the AVS allocation methodology.
- Delivering a comprehensive framework for protocol risk alerts that is ready for implementation.
Payment Request
To continue our engagement and advance the outlined objectives, we request the next quarterly payment of $120,000 USDC in REZ tokens as per the terms of our agreement. This funding will support the continued provision of our industry-leading risk management services and the completion of our planned deliverables.
$120,000 USDC is calculated as 2,435,745 REZ based on 7-day TWAP (12/13-12/19) of $0.04927
In addition, we request the remainder of the payment from the previous quarter: 717,592 REZ, calculated based on 7-day TWAP (9/13-9/19) of $0.03617. This remaining balance represents the delta between the REZ due last quarter (3,317,591) and the REZ received (2,599,999)
Total REZ Due: 3,153,337
Looking Forward
By continuing the partnership with Chaos Labs, Renzo DAO continues to benefit from cutting-edge risk management methodologies, ensuring:
- Enhanced security and scalability for the Renzo protocol.
- Proactive identification and mitigation of systemic risks.
- Strategic insights and recommendations to navigate the evolving Restaking landscape.
We remain committed to supporting the Renzo DAO as a flagship partner, delivering innovative solutions to solidify its position as a leader in the restaking ecosystem.