MIP-2 Deploy a new market with Renzo ezETH on Mendi

Authors: Mendi Core Team

Title: Deploy a new market with Renzo ezETH on Mendi

Type: Mendi Improvement Proposal

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Abstract

Eigenlayer restaking has been the dominant narrative this year in DeFi. EigenLayer has grew from $250 million in TVL to $11.819 billion at the time of writing. Renzo has been a key player in this growth and the protocol abstracts away all complexity from the end-user and enables easy collaboration between them and EigenLayer node operators. With the launch of ezETH on Linea, Mendi Finance should deploy a new market in the lending protocol for ezETH to provide lending and borrowing opportunities with this new and dynamically growing market.

Proposal Summary

Deploying the ezETH market will further leverage Mendi’s top position within the Linea ecosystem and capture trading activities around the ezETH token. It will also enable the Mendi community to gain exposure through ezETH to EigenLayer points and Renzo points.

The Mendi core team will be responsible for deploying the contracts, using the standardized deployment process.

Motivation

The Mendi community will gain considerable benefit from the deployment of the ezETH market:

• Mendi will capture the ezETH market on Linea generating further protocol revenue to be distributed to stakers.
• Lending protocol users will gain exposure to EigenLayer Restaking yields, Renzo points and EigenLayer points.
• Renzo will distribute Renzo ezPoints to wETH suppliers.

Technical considerations

Outline the technical aspects of the upgrade and what are the required development works to implement the proposal if the voting passes.

Expected Timeline

• Governance Vote: From March 13th to March 15th. An accelerated DAO proposal will enable a quick capture of the ezETH market for Mendi
• Deployment Target: Immediately once the vote passes. The core team will deploy the contract on the 13th, but we will not execute it unless the DAO vote passes.

Deployment Considerations

The core team will be responsible for deploying the new market.

Chainlink price feeds will be used to secure the market and the lending protocol.

Conflict of Interest

There are no conflict of interests between the core team regarding this proposal.

Next Steps

Deployment of the market after the vote passes.

References and Links

https://docs.renzoprotocol.com/docs/

https://twitter.com/LineaBuild/status/1768303692493570272?s=20