ezETH Compound Alpha Vault

The ezETH Compound Alpha Vault is designed to increase Ethereum-denominated returns using ezETH as the core asset. The vault deploys ezETH into the Compound protocol, where it is used as collateral to borrow WETH. Borrowed WETH is then converted back into ezETH and re-supplied, increasing overall exposure to ezETH staking and restaking rewards relative to the initial deposit.

Position management, debt levels, and risk controls are handled continuously by the Renzo Reserve OS. The system monitors loan-to-value (LTV) ratios and borrowing conditions in real time, leveraging the close price relationship between ezETH and WETH. If conditions change, the vault can rebalance or reduce leverage automatically to manage liquidation risk, allowing users to participate in the strategy without manual intervention.

Key Benefits

1. Amplified Yield on ETH: Earn competitive and optimized returns on ETH exposure through ezETH & leveraged strategies.

2. Hands-Off Execution: All borrowing, looping, and position adjustments are handled automatically, removing the need for manual leverage management or active monitoring.

3. Real-Time Risk Management: LTV ratios, borrowing costs, and market conditions are continuously monitored, with automatic rebalancing or deleveraging when risk thresholds are reached.

4. OnChain Transparency: Strategy behaviour, risk parameters, and vault state remain verifiable publicly on the blockchain.

Vault Details:

• LP Token Symbol: ezCompETH1

• LP Token Name: ezETH Compound Alpha

• Fees: 20% Performance Fee (e.g. 20% of yield generated in ETH terms)

• Underlying Vault Asset: ETH (WETH)

Operation Flow

• User deposits ETH into the vault

• Receipt tokens are minted to user as "ezCompETH1"

• The vault deposits ETH into the Renzo ezETH deposit manager

• ezETH is minted back to the vault

• The vault supplies the ezETH as collateral on Compound and takes on a WETH debt at a defined LTV

• The borrowed WETH is redeposited into Renzo and ezETH is minted again

• Process is repeated till max leverage

Contracts

• Vault Contract: 0xd1a85beAED6b5D2e61D3C50C4bD56e4E46133686

• ethDepositor: 0x45fEd80345757CE3B530effA4B8022Df3419CcCd

• CachedRateProvider: 0x4709ab91123f7Dbb4B6C4a02C94E855678404Fc7

• ezETHConversionStrategy: 0xEBB77A6a553646f81Eaf57429C8Fc004F9bBd86a

• ezETHValueStrategy: 0x35b5EBe66Dd7EF372F5C36B25A297863e1b0BD9E

• CompoundEzEthLoopStrategy: 0xD050D674bdd75A0398BE6b6ec87978cd6622F1BC

Deposits

• Visit https://app.renzoprotocol.com/reserve/ezCompETH1

• Click Connect Wallet to link your EVM wallet.

• Confirm the amount of ezETH tokens and proceed to deposit.

• Approve and confirm the transaction on your wallet.

• Once the deposit is successful, you can view your ezCompETH1 on your wallet.

Withdrawals

• Visit https://app.renzoprotocol.com/reserve/ezCompETH1 and select withdraw.

• Enter the amount of vault shares ezCompETH1 that you would like to redeem. You can click MAX to enter the maximum tokens available

• Confirm the amount and proceed to deposit.

• Approve and confirm the transaction on your wallet.