Summary
Objective Labs recommends listing ezETH on Euler Arbitrum both as a borrowable asset and collateral. ezETH is already supported across major Arbitrum protocols but remains unlisted on Euler, creating a clear opportunity to lead LRT integrations on-chain.
Fundamentals
ezETH is a liquid restaking token from Renzo that gives users access to rewards from Ethereum validators and EigenLayer restaking. When users deposit ETH or LSTs like stETH into Renzo, the protocol restakes them with actively validated services on EigenLayer. In return, users receive ezETH, which grows in value over time as rewards accumulate. According to Renzo’s website, ezETH currently offers an APR of approximately 3.1%, derived from both Ethereum validator rewards and EigenLayer restaking yield.
As of July 2025, over $1.32B worth of ezETH is deployed across chains, with $24.69M on Arbitrum.
Over the past three months, ezETH has maintained a steady market cap of around 350K ETH. Daily trading volume remains under 5k ETH, signaling a maturation of its holder base with long-term holders.
Liquidity
As of July 21, 2025, ezETH liquidity on Arbitrum supports swaps of up to 630 ezETH with under 1% slippage and up to 678 ezETH with under 5% slippage. This level of depth indicates sufficient onchain liquidity to support listing ezETH as both a borrowable and collateral asset on Euler’s market.
Risk Parameters
Caps
| Asset | Supply Cap | Borrow Cap |
|---|---|---|
| ezETH | 500 | 250 |
We recommend initial conservative caps of 500 ezETH supply and 250 ezETH borrow, reflecting current liquidity while allowing sufficient room for adoption and market discovery.
IRMs
| Asset | Base rate | Kink | Rate at kink | Rate at max |
|---|---|---|---|---|
| ezETH | 0% | 50% | 1% | 40% |
We recommend the same IRM used for the other LSTs is the market.
LTVs
| Collateral | Debt | LLTV |
|---|---|---|
| ezETH | WETH | 93% |
| ezETH | wstETH | 92% |
| ezETH | weETH | 91% |
| ezETH | rsETH | 91% |
| ezETH | tETH | 91% |
| WETH | ezETH | 93% |
| wstETH | ezETH | 92% |
| weETH | ezETH | 91% |
| rsETH | ezETH | 91% |
| tETH | ezETH | 91% |
Note: the LTV matrix assumes rsETH and tETH are integrated
We recommend setting borrow LTVs to 2% below LLTVs.
Oracle
We recommend using Chainlink’s ezETH/ETH exchange rate feed, crossed by the same oracle used for ETH in the market.