Renzo Depeg (2024) event

Event · PageRank 0.0008

Overview

On April 24, 2024, ezETH — the liquid restaking token issued by Renzo Protocol — lost its peg to ether, briefly trading as low as roughly $688 on Uniswap before recovering. The drop followed the end of Renzo's season 1 airdrop farming window and a contentious REZ tokenomics announcement, which prompted holders to exit ezETH in size; because ezETH could not be redeemed instantly, sellers had to route through secondary liquidity. The depeg triggered cascading liquidations for leveraged "loopers" on lending markets including Gearbox and Morpho. It became a widely cited example of the liquidity and oracle risks in the restaking and LRT sector.

Within the DeFi Intel graph, Renzo Depeg (2024) connects to 1 tracked entity, most strongly to Renzo Protocol.

Relations

Top connections in the DeFi Intel knowledge graph (confidence-weighted, 1 of 1 total).

Frequently asked questions

What happened to ezETH in April 2024?

On April 24, 2024 ezETH depegged from ether, briefly falling to about $688 on Uniswap before recovering.

What caused the depeg?

It followed the close of Renzo's season 1 airdrop farming window and a contentious REZ tokenomics announcement, which drove a rush of holders to sell ezETH into secondary market liquidity.

What was the knock-on effect?

The price drop triggered mass liquidations of leveraged looping positions on lending protocols such as Gearbox and Morpho, and highlighted broader liquidity risks in liquid restaking tokens.