Renzo, the Ethereum liquidity re-pledge protocol, became famous for launching the 53rd phase of Binance’s new coin mining project yesterday (23rd) night . However, its liquidity token ezETH briefly decoupled this morning, causing social The group was once panicked, worried that such liquidity pledge or re-pledge agreements would be decoupled, leading to the risk of serial liquidations.
ezETH once decoupled to 0.2 WETH
According to Dexscreener data , ezETH and WETH in the Uniswap capital pool were originally stable at a 1:1 exchange relationship. However, at around 10:35 this morning, they were once decoupled to a minimum of 0.2132 WETH, equivalent to $688. Fortunately, it quickly stabilized to 0.97 WETH around 11 o'clock and maintained this level until the deadline.
Exploring the reasons for the temporary decoupling of ezETH may be related to a series of liquidation events in the lending protocol Morpho. According to the platform’s data , at 10:34 this morning, user (0xaA…FB13) was the first to be liquidated on Morpho for 256.93 ezETH, worth approximately US$837,000. Then between 10:37 and 10:40, users (0xB0…1d12) suffered a series of liquidations, accumulating 702.27 ezETH, worth approximately US$2.29 million.
Gearbox will release ezETH decoupling report
Regarding the decoupling incident of ezETH, this may be a "chicken and egg, chicken and egg" problem. On the one hand, the series of liquidation transactions undoubtedly exacerbated the degree of decoupling of ezETH; on the other hand, basic factors, such as Uniswap's insufficient liquidity and ETH price fluctuations, may also be the root cause of this event.
Gearbox, a protocol that provides ezETH with up to 9x leverage, responded:
Due to the decoupling of ezETH quoted by the RedStone oracle, some credit accounts were liquidated, but the Gearbox platform did not incur bad debts. Reckoning is never pleasant, however, and we'll get a full recap of what happened shortly.
Renzo’s Official Twitter has not yet publicly commented on this incident.
Buyers who buy the dips make a profit
The decoupling of ezETH’s price not only caused panic among investors, but also attracted buyers looking for buy the dips opportunities. According to data on the monitoring chain of X account Ai Auntie, a whale spent 2,400 ETH to purchase 2,499 ezETH (approximately US$6.98 million), thus making a net profit of 99 ETH.
In addition, Lookonchain monitoring data on the chain pointed out that czsamsunsb.eth invested 4,099 ETH to purchase 4,221 ezETH, and achieved a net profit of 121.65 ETH in about 2 hours, worth approximately US$395,400.
