Renzo’s liquid restaking token (LRT), ezETH, experienced a significant depegging event that liquidated millions from “loopers” using the token as collateral on leverage protocols like Gearbox.
According to data from CoinMarketCap, the digital asset’s value plunged to a low of $2,755 before recovering to its current level of $3,178 as of press time.
Notably, decentralized exchange Uniswap witnessed a more severe depegging of ezETH, with its value dropping to as low as $700, attributed to liquidity challenges.
Renzo is a prominent liquid restaking protocol, with over $3 billion worth of assets locked on its platform, according to DeFillama data.
Liquidation galore
The DeFi protocol Gearbox confirmed that the depeg led to the liquidation of several Credit Accounts.
The protocol’s founder, 0xmikko, provided more insights into the situation, saying:
“115 Credit Accounts were liquidated, 10,650 ezETH were sold on Balancer pool. Liquidation losses of 25.77 ETH were automatically c
We współpracy z: https://cryptoslate.com/renzos-ezeth-token-depeg-triggers-liquidations-across-defi-platforms/
