A Comprehensive Understanding of the Yes and No of Binance Launchpool's New Project Renzo
Binance launched a new coin mining project, Renzo, which has received investments from Binance Labs, OKX Ventures, and others.Author: Mia, ChainCatcher
Editor: Marco, ChainCatcher
Yesterday, Binance announced the launch of its 53rd new token mining project, the liquidity re-staking protocol Renzo (REZ).
Starting from April 24, 8:00 AM Beijing time, users can stake BNB and FDUSD in the Launchpool to earn REZ rewards. Of the token rewards, 85% will go to BNB stakers, while the remaining 15% will be allocated to the FDUSD pool. The mining activity will last for 6 days.
After the Launchpool activity ends, Binance will list Renzo (REZ) at 8:00 PM Beijing time on April 30, and trading pairs will be opened. REZ will follow seed label trading rules.
Previously Invested by Binance Labs, OKX Ventures, and Others
Renzo is a liquidity re-staking protocol based on the EigenLayer ecosystem, designed to simplify complex staking mechanisms for end users and facilitate rapid collaboration with EigenLayer node operators and Active Validation Services (AVS).
According to the project team, unlike traditional staking, Renzo allows users to earn higher yields. Renzo effectively releases the liquidity of re-staked ETH by introducing the derivative token ezETH; additionally, it utilizes advanced algorithms to balance returns and risks in real-time, automatically making optimal allocation choices for users to ensure stable and considerable investment returns.
The project team claims that the REZ token has dual purposes of utility and governance, allowing users to vote on governance proposals related to the Renzo protocol.
According to the crypto data platform RootData, Binance Labs participated in the investment of Renzo. In January of this year, Renzo announced the completion of a $3.2 million seed round of financing, led by Maven11, with participation from OKX Ventures, IOSG Ventures, Figment Capital, SevenX Ventures, and others. OKX Ventures stated that this is its first officially announced investment in the EigenLayer ecosystem.
Project Development Updates
Renzo announced the launch of its mainnet in October last year, and within just three months of its launch, its Total Value Locked (TVL) exceeded $100 million. Currently, according to Defillama, Renzo's TVL stands at $3.3 billion, ranking second in the LRT track.
In January of this year, Renzo launched the Renzo ezPoints rewards program to incentivize users who contribute to the protocol. One way to earn points is by minting ezETH, which serves as Renzo's liquidity re-staking token. ezETH can automatically earn rewards and ensure liquidity, allowing users to participate in DeFi while retaining re-staking rewards. There are no limits on token deposits in Renzo, which is one of the main factors for its skyrocketing TVL.
According to its founder, Lucas Kozinski, Renzo's development plan is divided into three phases, requiring one to one and a half years:
First is to increase and allocate liquidity; Renzo is currently in this phase, having integrated over 50 DeFi protocols and launched native re-staking on multiple Layer 2s;
The second phase will focus on improving efficiency and addressing gas cost issues on EigenLayer to enhance yields;
The third phase will enable the "Slashing" feature of AVS within the next 6 to 12 months to build portfolios and manage risks.
Currently, Renzo has partnered with companies like Gauntlet to establish risk and portfolio construction frameworks to capture market share and gain user trust.
REZ Token Economic Model
The total supply of EZ will be 10 billion tokens, with a circulating supply of 1.05 billion tokens at launch, accounting for approximately 10.50% of the total token supply. The specific distribution mechanism is as follows:
Binance Launchpool will allocate 2.50%;
Airdrops will allocate 10.00%;
Investors and advisors will allocate 31.56%;
The team will allocate 20.00%;
The foundation will allocate 13.44%;
The DAO treasury will allocate 20.00%;
The liquidity budget will allocate 2.50%.
According to the chart, in terms of token unlocking progress, the REZ token will maintain a relatively low circulation ratio during the initial circulation phase, with the token supply mainly composed of Binance Launchpool and airdrop shares. By the end of the first quarter of next year, the circulating supply of REZ tokens will enter an acceleration phase.
Controversy Over Economic Model
With the public release of the REZ token economic model, voices of skepticism have emerged within the crypto community, with the presentation of the economic model's chart becoming the focal point of controversy.
Some investors pointed out that the economic model allocates a large number of tokens to investors and the team. The project team has been accused of obscuring this fact by designing misleading pie charts. In the pie chart, the section labeled "half" actually occupies 62%, while two sections that only account for 2.5% are visually exaggerated to about 20%. Some investors even published what they believe to be a more accurate pie chart for comparison.
Additionally, some investors expressed skepticism about the project's claim of "decentralization of the protocol."
They sarcastically noted that while the project team promotes decentralization, they have only airdropped 5% of the token supply, which seems very absurd. They further pointed out that as much as 70% of the token supply is still held by insiders, indicating that the so-called decentralization has not been achieved at all.
As the controversy within the community escalates, Renzo announced today that it will open the first quarter airdrop claim event on May 2, distributing 5% of the total token supply. It is important to note that the first quarter incentive activity will end on April 26, and users who sell their ezETH holdings before this date may lose their eligibility for the airdrop. Users can claim REZ on May 2 through the official claim website.
It is understood that Renzo will linearly distribute 500 million REZ (5% of the total) based on the ezPoints accumulated by users. Addresses in the top 5% will have 50% of the tokens unlocked immediately at TGE, with the remaining portion gradually released over the next 6 months. Additionally, 2% of the first quarter 5% airdrop (0.1% of the total token supply) has already been allocated to NFT communities such as Milady Maker and SchizoPosters. The second quarter reward activity will immediately launch on April 26, 2024.
Furthermore, Renzo stated that airdrop eligibility depends on ezPoints at the time of the snapshot, regardless of the ezETH balance at that time (whether sold or not); users whose Pendle YT expired before the snapshot will be eligible for the airdrop as long as their scores meet the minimum standard; NFT airdrops will be calculated based on the number of NFTs, not the number of wallets.
