Renzo Protocol Releases February Risk Review Report

**Renzo introduces ezAuctions** - a weekly auction mechanism that converts non-ETH restaking rewards into pure ETH rewards for ezETH holders. **The Problem Solved:** - Claiming mixed token rewards from AVSs was costly and complex - Users risked losing rewards when claiming costs exceeded value - Tax implications from handling multiple reward tokens **How ezAuctions Work:** - Every Tuesday at 5 PM EST, Renzo claims EigenLayer rewards - Non-ETH tokens go to auction contract on Ethereum - 5-day auction period with price dropping ~20% daily - Starts at ~2x token value, decreases linearly - Anyone can bid using the buy() function **Key Benefits:** - Efficient token conversion with reduced slippage - Tax-efficient pure ETH rewards - Auto-compounding back into ezETH positions - No manual reward management required The system has been battle-tested and provides a streamlined alternative to market-selling reward tokens. [View auction contract](https://etherscan.io/address/0x31E5b1750b872542af1848D62464e2936A387453) | [Read detailed guide](https://mirror.xyz/0x3Bce01Da1a431Bfefdd6807dfc2cf7a7C0755008/3RY08ZSBAMnZ-2aVpv_HcxOjW4NdRcPANpy4lp-d7z8)

**ETH Strategy**, a Digital Asset Treasury (DAT), has chosen **ezETH** for its onchain treasury yield strategy. This partnership aims to deliver high ETH yields with favorable tax treatment and enhanced security for shareholders. **Key Benefits:** - Pure ETH yield through automated compounding - Publicly verifiable reserves via onchain data - Simplified DeFi management without complex operations - Tax-efficient structure eliminating manual reward collection **Why ezETH?** Renzo's auction and rewards system automates the complexities typically required for competitive DAT operations, including risk management and continuous monitoring. DATs need sophisticated yield strategies to remain competitive. ezETH provides exposure to staking, restaking, and bluechip DeFi integrations in a single product. [Restake with Renzo](https://app.renzoprotocol.com/ezeth)

SparkLend has expanded its borrowing options by onboarding Renzo Protocol, allowing users to borrow against ezETH tokens. This integration is part of a broader expansion that includes four new assets: - rsETH from KelpDAO - ezETH from Renzo Protocol - tBTC from The T Network - LBTC from Lombard Finance Users can now access these enhanced borrowing capabilities on [Spark's platform](https://app.spark.fi/borrow).

Renzo's ezETH has launched on Fluid, offering new DeFi capabilities: - Two new pools available: * ezETH / wstETH * ezETH-ETH / wstETH **Key Features:** - Up to 96% LTV for wstETH borrowing - Smart Collateral and Smart Debt functionality - 4x points earning on all ezETH deposits - Intuitive interface for swapping, lending, and borrowing Users can supply ezETH or ezETH-ETH as collateral, enabling dual-sided rewards through Smart Collateral and Smart Debt systems. [Visit Fluid's documentation](https://fluid.guides.instadapp.io/vault-protocol/vaults-on-fluid) for detailed information.

Renzo Protocol has expanded to Base, one of the fastest-growing L2 networks powered by Coinbase. The integration features: - First REZ DeFi integration on Base through REZ/USDC pool on Aerodrome Finance - Bridge functionality powered by Hyperlane - Additional rewards for LP providers Users can access the new features through: - [Aerodrome Finance](https://aerodrome.finance/pools) for liquidity provision - [Renzo Bridge Dapp](https://app.renzoprotocol.com/bridge) for token bridging Support available via [Discord](https://discord.gg/renzoprotocol)