Compared with previous Launchpool projects, Renzo ’s valuation logic seems to be much clearer.
Original author: Azuma
On the evening of April 23, Binance officially announced that the liquidity re-pledge agreement Renzo (EZ) will become the 53rd project for the platform's new coin mining.
Starting from 8:00 am Beijing time on April 24, users can invest BNB and FDUSD into Launchpool to obtain EZ rewards. EZ mining will last for a total of 6 days. The Launchpool website will be updated before the mining activity opens.
After Launchpool ends, Binance will list Renzo (EZ) at 20:00 on April 30, Beijing time, and open EZ/BTC, EZ/ USDT , EZ/BNB, EZ/FDUSD and EZ/TRY trading markets. EZ will be subject to seed tag trading rules.
Overview of Renzo Business Model
Earlier this year, Odaily Odaily wrote an article shortly after Renzo went online: " TVL increased by 100 million per month, how did Renzo occupy a place in the Restaking track? " The article detailed Renzo's business model.
In short, Renzo is positioned as a liquidity re-staking protocol based on EigenLayer. The project mainly aims to solve the two major pain points of re-staking directly through EigenLayer: First, the liquidity of ETH will also be locked after re-staking. Renzo’s solution is to use the derivative token ezETH to release the liquidity of re-staking ETH; second, with the increase in the number of EigenLayer active verification services (AVS), different AVS configuration strategies will present completely different returns and risk conditions. At this time, Renzo can use its algorithm to balance returns and risks in real time, replace users to make complex configuration choices, and help users achieve stable high returns.
EZ Token Economic Model
Shortly after Binance officially announced the launch of Renzo, an overview of EZ’s token economic model was revealed for the first time.
The total supply of EZ will be 10 billion, and the circulating supply at the time of listing will be 1.05 billion, accounting for approximately 10.50% of the total token supply. The specific distribution mechanism is as follows.
Binance Launchpool will allocate 2.50%;
The airdrop will allocate 10.00%;
Investors and advisors will be allocated 31.56%;
The team will be allocated 20.00%;
The foundation will allocate 13.44%;
The DAO Treasury will be allocated 20.00%;
2.50% will be allocated to the liquidity budget;
From the perspective of token unlocking progress, since the beginning of circulation, the circulation ratio of EZ will remain at a relatively low level in the next year. The token supply during this period is mainly composed of Binance Launchpool and airdrop shares. However, starting from the end of Q1 next year, the circulation supply of EZ will enter an accelerated stage, and investors need to pay attention to this time node.
Valuation Overview
Compared with Binance’s previous Launchpool projects, Rezon’s valuation logic is relatively simpler, because Renzo has a very clear comparison target - ether.fi.
As two direct competitors in the liquidity re-staking track, Renzo and ether.fi have many similarities in addition to overlaps in business types.
First, the TVL of the two is almost the same. According to Defillama data, the current TVL of ether.fi is 3.8 billion US dollars, ranking first in the LRT track; Renzo's TVL is 3.3 billion US dollars, ranking second in the LRT track.
Second, the initial circulation ratios of the two tokens ETHFI and EZ are almost the same. The initial circulation supply of ETHFI is 115.2 million, accounting for about 11.52% of the total token supply; the initial circulation supply of EZ will be 1.05 billion, accounting for about 10.50% of the total token supply.
Third, the first launch channels for both tokens ETHFI and EZ are Binance Launchpool , and ether.fi is the 49th project.
Based on the above points, we can speculate on the valuation of Renzo through the price performance of ether.fi after its launch, as shown below.
Based on the real-time price of ETHFI of $3.9, the corresponding EZ price calculated with the same FDV will be $0.39, and the weighted FDV difference will be $0.34; the corresponding EZ price calculated with the same MC will be $0.43, and the weighted FDV difference will be $0.37 .
Of course, the above price is only a static estimate based on Renzo's market competition situation. Considering that the two have certain differences in business focus and the market sentiment at the time of the two rounds of new issuance is slightly different, the price performance of EZ still needs to wait until the opening before there can be a definite answer.
