Abstract
During Amore, REZ staking on Ethereum mainnet was incentivized by ezPoints. This created an avenue to duly reward REZ stakers and supporters. With Renzo Amore coming to an end, the Foundation plans on re-shaping how REZ stakers are rewarded, in a way which opens up the possibility for REZ stakers to extend economic security to AVSs, and possibly auto-compounding of partner airdrops & fee sharing with REZ stakers
If adopted, this RP will officially launch ezREZ restaking on EigenLayer.
What this means: REZ can be used to provide economic security to AVSs, especially the AVSs that Renzo work closely within the Renzo ecosystem. Unlike the former REZ staking model, ezREZ will now introduce a liquid receipt token making it composable with various DeFi applications.
This proposal will follow a 5-day discussion period after which a Snapshot voting will be put up for REZ holders to vote on the proposal leading to the following if passed:
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Pause any new deposits on the current REZ staking contract
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Accept REZ as an asset on Eigenlayer
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Allow minting of ezREZ backed by 1:1 REZ staked on EigenLayer
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Set Deposit caps at 50M REZ
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Deploy Uniswap V3 pool for ezREZ/REZ pair
Motivation
AVSs (Actively Validated Services) require defined asset(s) for economic security in which they require to operate. They in turn provide economic incentives as AVS rewards to node stakers and operators. Renzo provides economic security to these AVSs in ETH and stETH. This proposal opens up the opportunity for deeper alignment between AVSs and Renzo DAO utilising REZ economic security.
Security
ezREZ will be built on the same battle-tested contracts as ezETH and ezEIGEN.
ezETH is the liquid restaking token representing a user’s EigenLayer restaked position at Renzo. With several successfully completed audits, ezETH, ezEIGEN and ezREZ present a good layer of security for users. Read more on the audits here.
Incentives:
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By providing economic security to AVSs, stakers in turn benefit from rewards paid out by these services
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ezREZ, just like ezETH, is a reward bearing token similar to cTokens. Any rewards earned will be auto-compounded. This means the value of ezREZ increases relative to the underlying assets as it earns more rewards.
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ezREZ will earn users ezPoints which are key for future REZ distributions to reward community participation
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Fee sharing: opens up opportunity for fee sharing to reward loyal community members
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Partner Token allocation: Rewards received from partner projects will be distributed to ezREZ stakers
Key Specifications
- ezREZ will be deployed as an ERC-20 token on Ethereum Mainnet
- Similar to ezETH, the smart contract will mint ezREZ when REZ is deposited
- Reward bearing c-token: rewards will auto-compound to ezREZ
- ezREZ will be transferable from Day 1 with withdrawals enabled
- ezREZ position will generate ezPoints at a similar rate to the current REZ staking. The current version of REZ staking will not generate ezPoints.
If this proposal is passed, deposits will go live with 50M REZ caps for Phase 1
- REZ will be accepted as an asset on EigenLayer
- Enable minting of ezREZ when REZ is deposited
- Delegation of restaked REZ to restaking operators whenever applicable
Implementation and Voting Process
The snapshot vote will occur five days after this proposal is published, allowing REZ holders to decide on the direction of the RP. If approved, the following implementations and other described in this proposal will be pursued under RP-3:
- Formally announce the sunsetting of the current REZ staking contract, stop accrual of ezPoints and pause any new deposits. Users will have to manually migrate their REZ staking position following a 1 hour cooldown period on the current REZ contract.
- ezREZ will officially launch on Mainnet instance, leveraging same battle tested contracts as ezETH and ezEIGEN
- The smart contract will be setup to mint ezREZ when REZ is deposited
- Deposit caps will be defined and set to 50M REZ for phase 1
- Mint 2.5M ezREZ from the treasury and deploy ezREZ-REZ LP on Uniswap V3 using another 2.5M REZ from the treasury
- Add ezREZ staking to governance to maintain governance participation from the community.
REZ holders with voting rights will have the responsibility for voting on the direction of this proposal
- For: Officially deploy ezREZ on Eigenlayer via Ethereum Mainnet
- Against: Do not deploy ezREZ or as specified by this RP
- Abstain: Neither for or against
Exiting the Current Staking Contract
The current REZ staking contract features a 1 hour cooldown period, after which users are able to manually claim and possibly migrate to the new ezREZ contract. As opposed to the former 7 day cooldown period, the Foundation has set this short interval to ease the migration process. If this RP should pass, the ezREZ staking will go live immediately on the Dapp making the process even more convenient.
A well detailed guide on this process will be made available on the passing of this proposal or as popularly demanded from the community at any stage of this RP
Governance Adoption and Voting Power
The ezREZ instance will be integrated into governance, granting it voting rights. Both staking contracts will be whitelisted for governance participation; however, they cannot be active simultaneously. For example, if a user initiates a cooldown on the current REZ staking contract, their voting power will be temporarily disabled until they either migrate to ezREZ or delegate their tokens. A snapshot of both positions will be taken prior to any proposal voting to factor into the voting process.
To ensure smooth transition between these two staking options, a separate RP will be made to fully sunset voting rights from the current REZ staking if this RP-3 passes.
Empowering REZ Stakers through Restaking
REZ is the governance token for the Renzo community. Holders of this token are able to express their voices and concerns in the DAO through voting rights granted by governance token, REZ.
Eigenlayer is a restaking network through which AVSs can select which assets to accept as economic security. On the other hand, users can stake supported assets and choose which operator to delegate to secure AVSs.
ezREZ will be a representation of REZ staked in Eigenlayer and will be delegated to specified operators who will in turn secure AVSs accepting REZ as an asset. Renzo runs on some of the services provided by these AVSs and looks forward to collaborating further to expand its ecosystem.
As outlined in several points on this proposal, this RP opens up avenues for revenue generation for REZ stakers.
The Foundation encourages a full participation on this proposal, from discussions to snapshot as this strengthens the DAO’s decisions.