Depeg of $3B restaking token ezETH causes over $60M in DeFi liquidations
Renzo Protocol’s liquid restaking token (LRT), ezETH , suffered a sharp depeg overnight, in response to an unpopular and misleading token omics announcement. LRTs are popular with so-called ‘airdrop hunters’ in the decentralized finance (DeFi) sector. Many opt to take on highly leveraged exposure to the ETH-pegged assets to increase their chances of receiving a portion of the project’s own token upon launch. However, the announcement faced significant backlash as it revealed that just 5% of Renzo’s REZ token supply was set aside for the initial airdrop (despite the disingenuous use of a not-to-scale pie chart). The image has since been adjusted. Oh wow, this is pretty bad from @RenzoProtocol 1st, a large portion of the tokens are going to investors and team 2nd, looks like they’re trying to skew how bad it looks with the design of the pie chart Notice the bottom “half” is 62%, whereas the two 2.5%’s appear to be ~20% pic.twitter.com/1TWIaC9fNI — Blur (@BlurCrypto) April 2...