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

Governance Proposals
1

Authors: Mendi Core Team

Title: Deploy a new market with Renzo ezETH on Mendi

Type: Mendi Improvement Proposal

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.

Link to snapshot vote: Snapshot

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 regarding this proposal.

Next Steps

Deployment of the market after the vote passes.

References and Links

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

2 Likes
2

There was an issue brought up regarding the DelegatorOperator contract, that the team reviewed. Thank you for our community member firegogo who quickly brought up in the Discord conversation the issue for us to review.

This would be an issue if the Renzo team sets the percentages in the OD contracts incorrectly, for example OD1 - 70%, OD2 - 70%.

They would end up in a 70-30 split, but the team can easily fix this after.

No funds are at risk of loss.

We also reviewed the issue and agree with this conclusion. Halborn also reviewed the contract and found no outstanding issue.