RP-4: New Strategic Incentives for Renzo

Summary:

This proposal seeks to sunset the ezPoints program in favor of new, targeted strategic incentives. After careful analysis of the effectiveness of both ezPoints and similar programs, the Foundation finds these to be less effective once protocols grow beyond hundreds of millions in TVL. Instead of continuing ezPoints, the Foundation proposes more targeted, direct, and clear incentives for Renzo integrations of strategic importance as the best approach for continued protocol growth. Renzo has the highest yielding LRTs and users are already earning a higher yield than other staking protocols.

Reference: https://u–1.com/lrts

Motivation:

While overall successful, ezPoints and similar programs begin to deliver diminishing returns in terms of rewards and meeting participant expectations once TVL climbs and value speculation ends. The majority of rewards go to a few of the largest participants, while the majority of participants are disappointed as they expected more. The math begins to make less sense for users, stakeholders, protocol growth, and in the unique case of Renzo, an LRT that outperforms the rest, even without incentives.

Therefore, instead of revising and continuing ezPoints in a completely different fashion, the Foundation proposes sunsetting the program and replacing it with the Renzo Strategic Incentive Program (SIP).

The Renzo SIP is designed to benefit all stakeholders, users, and the Renzo Protocol by making more effective use of REZ reserves. Users and participants will receive a transparent amount of REZ based on their interactions with key integrations Renzo core contributors consider strategically important for growth. This approach limits the uncertainty with rewards, allows for quicker or instant delivery of REZ to the participants, and makes for more responsible use of REZ emissions in line with stakeholder expectations.

Implementation:

Subject to the passing of this proposal:

ezPoints and referral program will be sunset and points will no longer accumulate after Season 4 snapshot. Historical points will remain visible on the dApp until claims are closed.

The following pools will receive direct REZ incentives:

Aave

ezETH supplied 0.3% target APR Distributed monthly through Merit rewards The quarterly budget for the above pool will be 15,000,000 REZ

Kamino Lending

ezSOL supplied 0.9% target APR Distributed Real Time via Kamino Portfolio The quarterly budget for the above pool will be 5,000,000 REZ

UniswapV3

ezETH/wstETH: Enzyme Vault 10% target APR Distributed through vault curator Re7 Capital The quarterly budget for the above pool will be 4,000,000 REZ

Kamino Liquidity

ezSOL/JitoSOL 20% Target APR The quarterly budget for the above pool will be 4,000,000 REZ

Fluid

ezETH/ETH pool

10% target APR Distributed through Fluid Rewards The quarterly budget for the above pool will be 4,000,000 REZ

Token incentives will be distributed to each liquidity pair adjusted as needed to align with the proposal’s objectives. The conditions for this proposal may change based on community feedback and discussions. The Foundation reserves the option to incentivize other pools in alignment with the best interest of the Renzo community. Of the 75,000,000 REZ previously allocated in RP-2:

25,000,000 REZ will be distributed for Season 4 50,000,000 REZ will be reserved for the Strategic Incentive Program Transparency Report:

A detailed report of the distributed incentives will be published on the governance forum periodically, similar to the ongoing monthly incentives report.

Conclusion:

Renzo Protocol has delivered the most powerful LRTs in the industry, now it’s ready for the next phase of growth. This proposal to sunset ezPoints and begin the Strategic Incentive Program will be instrumental in accelerating the expansion of the Renzo ecosystem.

No points, no waiting, no games, just real rewards for using the best LRTs on the market.

Thank you for your support and participation in Renzo governance, the Foundation looks forward to hearing your feedback on this proposal.