[PIP-026] - Add ezETH as collateral to mint ULTRA


Project name: Renzo Protocol (ezETH)
Website: https://www.renzoprotocol.com/
Dapp: https://app.renzoprotocol.com/
Docs: Intro - Renzo Protocol
Source code: GitHub - Renzo-Protocol/contracts-public: Renzo Protocol Public
Contract: https://etherscan.io/token/0xbf5495Efe5DB9ce00f80364C8B423567e58d2110
Oracles: RedStone
Audits: https://github.com/HalbornSecurity/PublicReports/blob/master/Solidity Smart Contract Audits/Renzo_Protocol_EVM_Contracts_Smart_Contract_Security_Assessment_Report_Halborn_Final.pdf
Twitter: https://twitter.com/RenzoProtocol
Github: Renzo-Protocol · GitHub
Telegram: Telegram: Contact @RenzoProtocolChat
Mirror: Renzo Protocol

I am Kratik, a member of the core Renzo Protocol team. Currently there is only one other market for borrowing against LRTs on PrismaLRT - this is a proposal for a new market, ezETH, to be added alongside the existing market for Etherfi

Renzo is a Liquid Restaking Token (LRT) and Strategy Manager for EigenLayer. It is the interface to the EigenLayer ecosystem securing Actively Validated Services (AVSs) and offering a higher yield than ETH staking.

The protocol abstracts all complexity from the end-user and enables easy collaboration between them and EigenLayer node operators.

Renzo strongly advocates for EigenLayer and its goal of facilitating permissionless innovation on Ethereum, and programmatically acquiring trust for the ecosystem. Renzo is built to promote the widespread adoption of Eigenlayer.

As ezETH is an ERC-20 token, adding support for ezETH should be straightforward.

ezETH is the liquid restaking token representing a user’s restaked position at Renzo. Users can deposit native ETH or LSTs and receive ezETH.


  • ezETH is a reward bearing token similar to cTokens
  • The underlying restaking positions earn rewards which are reflected in the price of ezETH
  • Rewards are expected in ETH, USDC and Actively Validated Services (AVSs) reward tokens.
  • This means the value ezETH increase relative to the underlying LSTs as it earns more rewards in AVS tokens
  • To mint ezETH, simply go to the renzoprotocol.com/restake and stake your ETH or LSTs


  • Depending on the restaking strategies deployed, unstaking will take a minimum of 7 days, primarily due to EigenLayer unstaking requirements, but will vary depending on each AVS.
  • If the deposits and withdrawals are balanced, the rewards are equally distributed regardless of the asset being withdrawn.
  • If the deposits and withdrawals are unbalanced, while the principal will be withdrawn in whole the rewards are different for each asset incentivizing the balance based on the jump rate model

Motivation & Benefits to Prisma
Renzo has been following Prisma for some time now. Adding an ezETH market for ULTRA collateral will be mutually beneficial for both Prisma and Renzo Protocol, as it will increase the utility for ezETH, while also increasing the TVL for ULTRA and the Prisma protocol. Any TVL created from ezETH lending to Prisma creates additional revenue for the Prisma Protocol and DAO from active loans and liquidations. With the current APY estimates, ezETH would also be one the highest earning assets on Prisma, which many Prisma users will find beneficial.

Suggested Parameters

Mint Cap: 20m ULTRA
MCR: 130%
Mint Fee: 0.75%
Borrow Interest Rate: 4%


  • Prisma can be one of the first CDP use cases for ezETH
  • Most liquid LRT on the market
  • High ezETH TVL compared to competing LRTs
  • Increased TVL and utilization for ULTRA
  • Increased profit for the Prisma DAO from mint fees and liquidations
  • Increased utility for ezETH
  • Heavily audited, battle-tested ezETH code


  • Smart contract risk from being exposed to DeFi strategies

If you agree with this proposal, a [YES] vote would lead to the following:

Add ezETH/wETH as collateral to mint ULTRA with the above parameters
If you disagree with this proposal, a [NO] vote would result in the continuation of Prisma operations as is.

We would be happy to adjust the proposal and/or the above parameters based on feedback from the community, DAO, and core Prisma team and would be happy to answer any questions on Renzo Protocol, ezETH, or the proposal itself.


Snapshot is live: Snapshot