RariCapital

Summary:

We propose an upgradeable Ren cross-chain asset focused pool that will support current and future cross-chain assets supported by RenVM, beginning with renBTC and renFIL, and including ETH, USDC, and DAI in the pool as those are the most popular collateral assets on Ethereum.

Background:

The Ren Project launched RenVM, a byzantine fault-tolerant network that is able to securely in a decentralized manner do ECDSA threshold key generation and signing via secure multi-party computation, which allows RenVM to securely manage (ECDSA) private keys of different assets like Bitcoin and Filecoin, and wrap these assets on smart-contract chains like Ethereum and Binance Smart Chain. Since launch, RenVM has processed about $4 billion in total volume of Bitcoin, Zcash, Dogecoin and Filecoin going to and from Ethereum and Binance Smart Chain.

All Ren-assets on Ethereum are standard ERC-20 contracts, that are 1:1 representations of the native assets, and are redeemable at any time for the native assets, and can be created at any time using the native assets through any of the bridge UI built by the Ren team or third-party developers, like the RenBridge or the DeFi Bridge.

We foresee Zcash (as renZEC) to be added to the pool early after the potential launch of this pool, given outside developments which should land a Chainlink oracle for ZEC/USD, and will pursue price feeds for other assets supported by RenVM like Dogecoin, DigiByte and Terra (LUNA), and any future additions to RenVM.

Contracts and price feeds:

renBTC ERC-20 contract: https://etherscan.io/token/0xeb4c2781e4eba804ce9a9803c67d0893436bb27d renFIL ERC-20 contract: https://etherscan.io/token/0xD5147bc8e386d91Cc5DBE72099DAC6C9b99276F5

BTC price feed: https://data.chain.link/btc-usd FIL price feed: https://data.chain.link/fil-usd

Initial pool parameters:

Upgradeable: Yes Close Factor: 50% Liquidation Incentive: 8% renBTC Collateral Factor / Reserve Factor: 50% / 25% renFIL Collateral Factor / Reserve Factor: 45% / 25% ETH Collateral Factor / Reserve Factor: 75% / 20% USDC Collateral Factor / Reserve Factor: 75% / 15% DAI Collateral Factor / Reserve Factor: 75% / 15%

Motivation:

The proposed Ren cross-chain asset pool would be a unique offering in all of DeFi given the nascence of cross-chain DeFi, allowing the market to permissionlessly borrow multiple non-Ethereum asets such as Bitcoin and Filecoin which isn’t possible anywhere else at the moment. The pool would also be in the best interest of the large Ren community which will actively take part in managing and promoting this pool through our currently developing DAO.

Risks:

All assets supported by RenVM share the same security, which makes it easy to add new assets to the pool as it does not affect the security assumptions, but it does mean that there is an increasing reliance on RenVM not breaking. Our highest priority though is working on making the RenVM network as safe and decentralized as possible, and we’ll be launching many features during 2021 and forward to increase the safety and continually make it more decentralized.

Link to forum post: https://forums.rari.capital/d/45-ren-cross-chain-asset-focused-pool-renbtcrenbchrenfilethusdcdai