Renzo Protocol's ezETH Faces Depeg

• Renzo Protocol's ezETH faces a depeg.

• Chainlink’s CCIP opens for general availability.

• Pooled stakers can now claim their STRK airdrop.

• TreasureDAO launches Treasure Chain on testnet.

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Renzo Protocol experienced a significant depegging event with its ezETH liquid restaking token, which dropped by as much as 80% during a brief peak. The token has largely stabilized but currently trades at a 4% discount. The depegging was triggered by a sell-off and the lack of support for withdrawals from the protocol. This incident resulted in liquidations for positions in derivative markets, leading to over $50 million in losses for users with leveraged ezETH positions. Users have voiced their dissatisfaction with the protocol’s tokenomics and misleading representations in a pie chart. While the protocol has not directly addressed the depeg, they have announced that mainnet withdrawals are a main priority.

Note: Renzo published an update after this newsletter was released.

Chainlink's Cross-Chain Interoperability Protocol (CCIP) is now open for general availability, allowing developers to integrate permissionless cross-chain token and message transfers. The interoperability standard enables smart contracts to send data and trigger functions on different chains and supports token transfers for ETH and USDC. Applications for CCIP include cross-chain transfers, cross-chain collateral, and account abstraction. CCIP provides a token-bridging application called Transporter and features three transfer mechanisms. CCIP initially launched to mainnet early access in July 2023. The protocol has processed over $4 billion in USDC volume.

Pooled stakers and StarkEx users who were previously mislabeled can now claim their STRK token airdrop through the Starknet provisions portal. The STRK token was launched by Starknet on February 20 of this year. While Ethereum stakers were initially included in the allocation, an issue arose that prevented liquid staking protocols from distributing the tokens to their users. The Starknet provisions portal has been updated to support stakers from pooled protocols such as Lido, Rocket Pool, Ankr, Blox, SharedStake, Stakefish, and Consensys, allowing them to claim their tokens.  There is a claim cap at 43,200 STRK per wallet. The deadline for claiming STRK is June 20th, 2024.

TreasureDAO, the leading gaming platform on Arbitrum, launched the initial testnet version of Treasure Chain. The L2 chain is built on Arbitrum Orbit and uses EigenDA for data availability. The release includes the Treasure Portal—a user interface comprising of a bridge, an explorer, and a faucet for interacting with the testnet. The release also includes the launch of Shards, a new rewards system that allows users to earn points by completing quests on the testnet. Treasure Chain is anticipated to launch on mainnet in Q3 of this year.

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