Aave Expected to Increase ezETH Caps

DeFi vaults are experiencing significant growth in 2026, expanding from $6B to over $15B. However, a critical infrastructure challenge remains. **The Core Issue** Vaults operate at the application layer, working with existing DeFi yield. The fundamental bottleneck isn't vault technology—it's the lack of infrastructure to bring regulated assets into DeFi in the first place. **Key Points** - Vaults can only work with assets already in DeFi - Infrastructure must exist before applications can scale - The question remains: who is building the necessary infrastructure layer? This infrastructure gap represents the primary obstacle to broader institutional adoption and vault expansion.

Renzo Protocol has introduced a **Buyback and Burn Flywheel** program for its REZ token, with real-time tracking available through a [Dune Analytics dashboard](https://dune.com/renzo_team/renzo-protocol#rez-buyback-program). **Key Details:** - The program aims to reduce REZ token supply through systematic buybacks and burns - Token holders can monitor the program's progress in real-time - Renzo emphasizes alignment between protocol success and token holder outcomes The initiative represents Renzo's commitment to its community and REZ holders, creating a transparent mechanism where protocol growth directly benefits token holders through supply reduction.

Renzo has distributed a cumulative total of **20,605,232.6 REZ** to REZ stakers since the program's inception. **Key Protocol Metrics:** - Purchased 206,052,326 REZ from the open market using protocol revenues - Burned 185,447,093 REZ, reducing total supply by 1.85% - Additional token burns planned for the future The distribution represents ongoing rewards for participants in Renzo's staking program, funded through the protocol's revenue-generating activities. The token buyback and burn mechanism aims to manage REZ supply while rewarding long-term holders.

Renzo Protocol has executed its fourth buyback and burn event as part of its ongoing token economics program. **Key Details:** - REZ tokens were purchased from the open market - Tokens have been permanently burned, reducing total supply - Additional REZ distributed to stakers as rewards This marks the fourth iteration of the program, following previous burns in January. The initiative aims to manage token supply while rewarding long-term holders who stake their REZ tokens. Specific amounts and cumulative totals are available in the full thread announcement.

The tokenized economy faces a critical infrastructure challenge: **asset issuers need distribution and liquidity**, while **allocators want access to high-quality assets**, but there's no bridge between them. Most tokenized assets are permissioned, requiring compliance checks and eligibility requirements that prevent them from integrating with DeFi protocols. This creates what's known as the **Integration Gap**—quality regulated assets exist but remain isolated from DeFi capital markets. The core problem: - Supply side: Issuers lack distribution channels - Demand side: Allocators can't access quality assets - Missing piece: Infrastructure to connect regulated assets with DeFi The question remains: who will build the rails to bridge this gap?