In a recent incident outlined by a user named bboy1000halos, ETH price decoupling on the Renzo platform led to substantial losses for some investors. On Morpho, liquidations were triggered, resulting in a cumulative loss of 3,626 ETH, equivalent to roughly US$11.37 million.
bboy1000halos explained that they expected the lending situation to withstand a price decoupling of 15% to 20%. However, it was an unexpected shock when ezETH experienced a decoupling of 50%.
As a significant backer of Renzo with an exposure of 22k ezETH (including YT), bboy1000halos inquired about the possibility of receiving additional REZ to assist with the recovery. This incident marks a significant turn in the volatility and inherent risks in the world of cryptocurrency trading.