Ren is an interoperability protocol to port assets across different blockchains using the RenVM. Best highlighted by the recent surge in renBTC, the Ren Bridge allows users to deposit native assets (BTC, BCH, ZEC) and receive an Ethereum-wrapped flavor in return.
The key difference between Ren relative to other Bitcoin wrapping solutions like WBTC is that this process is permissionless, meaning it can be done without undergoing KYC or receiving consent from a third party.
This is process is enabled by validators running darknodes. Each validator must stake 100k REN as a bond to validate on the network and earn a pro-rate portion of the 0.1% trading fees and flat rate attached to every transfer.
In recent weeks, we’ve seen Ren partner with rising liquidity aggregators like Curve to offer unique onramps in which users simply deposit native Bitcoin and receive WBTC in return. Seeing as WBTC is supported in more DeFi applications (Maker, Compound, Aave, etc) this flow gives users access to deeper income opportunities than what renBTC currently offers.
Recent News About Ren for June of 2020
Ren has turned a lot of heads since launch due to the rapid shipment of new applications that leverage the RenVM. Best highlighted by the WBTC Cafe, RenJS is used to give users an easy onramp to WBTC in a permissionless fashion.
Complimented by the sBTC Curvepool, users can contribute renBTC, sBTC and/or WBTC to earn rewards in the form of SNX, REN, BAL and CRV. Talk about composability!
Ren Protocol Background
Originally started as Republic Protocol, Ren raised $34M in an ICO back in February of 2018 at a base rate of $0.05714/token.
Ren underwent a rebrand in 2019 in which they shifted their focus to creating an interoperable tool for any protocol to leverage called the RenVM. The RenVM was launched in May of 2020 and is most commonly interacted with using Ren Bridge.
How it Works
Select the amount of tokens you’d like to convert (in this example we’ll use Bitcoin) and hit Next. You’ll notice that the modal shows the Ethereum address (your connected Metamask wallet) which the renTokens will be sent to. Review the costs to make sure everything checks out.
Hit “Confirm” and you will receive a one-time deposit address to send your BTC to. Send the exact amount of Bitcoin you chose (in this case 0.01 BTC).
After depositing, you will have to wait for 6 network confirmations. Please note that this could take up to an hour, so be patient! Once deposited, you’ll need to do one final step of “Withdrawing” your newly minted renBTC to your wallet. Accept the transaction and you now have an Ethereum-wrapped version of Bitcoin!
With the recent surge in DeFi tokens, REN is making a strong case for value accrual since the launch of RenVM. We recommend using this query to stay up to date with how much BTC has been ported to Ethereum using the Ren Bridge at any given time.
Backed by a strong community called the Ren Army, this project is one you’ll certainly want to keep an eye on in the coming months.
To stay up with Ren, follow them on Twitter.