LRT · REZ · $0.8B TVL. Renzo rode the restaking wave to top-tier LRT status with ezETH, then became the category's cautionary tale: the April 2024 depeg — when ezETH briefly traded far below intrinsic value amid a chaotic token-launch weekend — remains the reference event for LRT liquidity risk.
Solvency screens at B. Sub-1x fee coverage, a 50% drawdown, and a 10% unlock schedule describe a protocol shrinking faster than it earns. The depeg exposed how thin exit liquidity gets exactly when everyone wants it; withdrawals have since been enabled, which structurally improves the picture.
Legitimacy screens at BBB. The team communicated and remediated through the episode, and audits are adequate — but the depeg was at root a design-and-communication failure, and the framework prices it there rather than in Solvency alone.
Growth screens at B with the weakest momentum in the LRT cohort (3/10): -45% TVL and a 10% share that continues to leak toward ether.fi.
Composite B. The screen's read: a protocol permanently marked by one bad weekend, competently managed since. A full rating would stress exit liquidity above all else.
"A chain is as strong as its weakest link." The conservative composite takes the weakest dimension and inherits any notching cap, so a single structural weakness cannot be diluted by strength elsewhere.
