RP-5: Deploy 700 ETH Into Fluid ezETH-WETH Instance on Mainnet

Summary:

This proposal seeks approval to deploy 700 ETH from the Renzo Protocol treasury into Fluid markets.

Motivation:

The Foundation aims to enhance asset utilization and improve liquidity for ezETH, with a particular focus on its lending markets. Fluid is a popular and leading DEX+Lending market in DeFi, with currently over 1.4B USD in TVL. Audited by Statemind and Mixbytes, the protocol still engages in active bug bounty programs like the ImmuneFi bounty with $500K in rewards.

By allocating 700 ETH to the specified Fluid market, the community looks forward to:​

Enhanced Liquidity: This will bolster overall ezETH liquidity in DeFi, facilitating more efficient trading and lending activities. The Fluid vaults offer a great opportunity for smooth swaps as well as borrowing and lending for ezETH.

Yield Generation: Actively deployed capital will generate further yield, thus contributing to the DAO revenue stream.

Strategic Collaboration: Engaging with Fluid markets aligns Renzo Protocol with innovative DeFi platforms like Fluid, fostering overall ecosystem growth.

Specification:

Assets: 700 ETH split into ezETH and WETH

Platform/Markets: ezETH-WETH vault on Fluid Markets

Deployment Strategy: The 700 ETH will be split and deposited into the vault to support swaps, as well as Lending activities.

Risk Management: We invite @Chaos Labs to carry out the risk assessments and recommendations over the deployment

Liquidity sourcing: The ezETH to be deployed for this proposal will originate from the DAO Community Treasury specified below

DAO Treasury: 0xD22FB2d2c09C108c44b622c37F6d2f4Bc9f85668

Next Steps:

Community Feedback: Gather important feedback from the community on the basis of this proposal and update any required parameters.

Snapshot Proposal: This proposal will be moved from the discussion phase to snapshot after a 5 day period, where REZ holders get to vote on this proposal.

Conclusion:

The successful deployment of 700 ETH into Fluid’s ezETH-WETH market represents a strategic move to deepen liquidity while generating sustainable yield for the DAO. We urge all REZ holders to actively participate in this governance process. Your votes are vital to driving the protocol forward and shaping the future of Renzo.