RP-2: Post Amore REZ Incentives

Proposals
1

Proposal Summary:

The Foundation proposes that the DAO allocate 25 million REZ (0.25% of the total supply) for ezPoints distribution at the end of every four months. With the successful conclusion of the Renzo Amore season—marked by significant growth in user adoption, TVL, and liquidity—this RP suggests distributing 0.25% of the REZ supply seasonally, over a one-year period. The initiative aims to consistently reward loyal community members while encouraging new deposits and fostering ecosystem growth.

Another focus of this RP is to direct an additional 0.5% of the total REZ supply (50M REZ) as liquidity incentives across specific decentralized exchanges (DEXs).

Motivation:

The impressive outcomes from previous seasons demonstrate the protocol’s long-term growth, have been driven in part by consistent incentives designed to reward loyal users. This proposal aims to sustain that growth by allocating a designated amount of REZ tokens to users that are accruing ezPoints.

The proposed incentive structure is designed to:

  • Reward loyal community members and users
  • Incentivize new deposits
  • Keep up community participation across seasons

Strengthening Ecosystem Liquidity

Renzo Amore experienced outstanding participation, boosting liquidity across several DeFi integrations, and restored the TVL to the $1.8 billion mark. In a continued effort to strengthen liquidity across all products, the Foundation proposes to allocate 0.5% of the total REZ supply as token incentives for liquidity provision for the next 4 months. The objective of the DEX incentives program is to incentivize deep liquidity across the Renzo ecosystem, and attract new liquidity.

Mechanics:

ezPoints Incentives

25,000,000 REZ tokens will be allocated every 4 months

  • Duration: 0.25% of the total REZ supply distributed every 4 months, for a total of 1 year
  • Each season will last 4 months, and distributions will happen at the end of each season
  • DeFi integrations eligible for ezPoints will be listed and updated on the Renzo Dapp

Liquidity Incentives

50,000,000 REZ tokens will be allocated to specific ezETH, pzETH and ezSOL pairs for a duration of 4 months

  • Ethereum Mainnet (ezETH/wETH)
  • Ethereum Mainnet (ezETH/wstETH) through any of the ALMs
  • Ethereum Mainnet (pzETH/wstETH) through any of the ALMs
  • Solana (ezSOL/JitoSOL)

Program Implementation

  • Duration: Beginning of December 2024 until the end of December 2025
  • Allocation:
  • 0.25% of the total REZ supply (25M REZ) will be distributed at the end of each season, each lasting for a period of 4 months
  • 0.5% of the total REZ supply (50M REZ) allocated for DEX incentives will be equally split across the 4 month period starting from the beginning of December 2024, and ending in March 2025.

Targeted Pools:

  • Balancer - Ethereum Mainnet (ezETH/wETH)
  • Uniswap V3 - Ethereum Mainnet V3 (ezETH/wstETH) through any of the ALMs
  • Uniswap V3 - Ethereum Mainnet V3 (pzETH/wstETH) through any of the ALMs
  • Kamino Vault - Solana (ezSOL/JitoSOL)
  • Token incentives will be distributed to each liquidity pair adjusted as needed to align with the objectives of this proposal
  • The conditions for this proposal may change based on community feedback and discussions
  • The Foundation reserves the option to incentivize other pools in alignment with the best interest of Renzo community

Discussion Timeline

Per the proposal guidelines, this discussion will be available for 5 days concluding on December 3rd, 2024 - to be followed by a Snapshot vote.

Voting

REZ holders are encouraged to participate in this first proposal.

  • For: Allocate 75M and 50M REZ to ezPoints program and Liquidity incentives respectively as stated in this proposal
  • Against: Do not allocate any incentives or as indicated in this proposal
  • Abstain: Neither for or against

Voting via Snapshot is expected to commence 5 days after the publishing of this proposal and end 5 days later.

Ecosystem Growth through Deep Liquidity and Incentives

By aligning incentives, this proposal reinforces Renzo’s vision of creating a robust and liquid DeFi ecosystem. Building liquid DeFi products and a supportive ecosystem has always been a core focus, and your participation in this proposal will play a pivotal role in shaping the future of Renzo.

After 5 days of discussion on this proposal, a Snapshot vote will go live, allowing REZ holders to decide on the future direction of the protocol.

4 Likes
2

This sounds so cool :fire:
Keep up with the good work

3

We support this proposal.

By consistently allocating 0.25% of REZ supply every four months and directing 0.5% to targeted pools, Renzo can maintain steady incentives that can bolster TVL, tighten spreads, and attract new participants.

We especially appreciate the incentivization of pools against LSTs like wstETH and JitoSOL. This way, liquidity providers don’t miss out on any potential staking rewards they may have otherwise been able to accrue. Additionally, the paired liquidity should increase over time on an ETH/SOL denominated as staking rewards are accrued to the underlying pair.

Key metrics will guide our judgment:

• TVL Growth & Stability: Does liquidity stick around after rewards cycle out?

• User Retention: Do new participants stay active once incentives diminish?

• Market Efficiency: Are spreads narrowing and slippage decreasing over time?

If these metrics show no meaningful improvement, we assume the foundation will pivot appropriately. However, note we don’t think this will be an issue.

With diligent monitoring and willingness to adapt, we believe this proposal sets Renzo on a promising course.