[REN] MIP6 Collateral Application

1. Who is the interested party for this collateral application?

@Planet_X. Thanks to @tbone for the majority of content.

2. Provide a brief high-level overview of the project, with a focus on the applying collateral token.

RenVM is an open protocol that enables the permissionless and private transfer of value between any blockchain. The REN token is used as a bond in order to operate darknodes on the RenVM network.

RenVM has already brought renBTC, renBCH and renZEC to the Ethereum network as part of the ongoing effort to connect different blockchains.

3. Provide a brief history of the project.

Q1 2018 - Decentralized Darkpools

Ren (Republic Protocol at the time) sold out a USD35 million ICO. The original mandate was to build darkpools for digital assets - a way to prevent front-running and price slippage by trading large amounts in a private, decentralized manner. This idea placed the project in the ‘interface’ layer of the stack. Rather than just building a single darkpool, the intention was to provide infrastructure for third parties to build multiple dark pools, pooling liquidity and providing a better end-user experience. RenEx and SwapperD were built and delivered (Q4 2018)

Q1 2019 - Republic Protocol Evolves to Ren

Ren team realizes that what they have built applies to much more than Darkpools, pivots down the stack to an ‘interoperability (+ privacy) protocol’ and RenVM is born. Rather than operating a single darkpool, or allowing multiple dark pools to build and connect, the protocol will now provide key interoperability infrastructure for DEXs, OTC desks, loan & leverage platforms, liquidity pools, NFTs, dApps, etc.

Q3 2019 - Formal RenVM Testnet: August 2019 - Present

This is still utilized to test features prior to implementation on Mainnet.

The RenVM Mainnet Rollout Plan 3 articulates the steps for testing and gradual decentralization of the protocol. Follows the recommendation of Progressive Decentralization from Andreessen Horowitz. (Published September 2019)

Q4 2019 - RenVM Chaosnet | RenVM Mainnet Unaudited

Formal RenVM Chaosnet: November 2019 - Present

The sole purpose of this was to put RenVM Mainnet through as many stress tests as possible prior to Mainnet release. The Ren team believes this prudent approach (a 6 month testing period) to RenVM’s security (in addition to formal verification from security auditors) has been crucial for its robustness and subsequent success. Chaosnet is still utilized to test features prior to implementation on Mainnet.

(Published November 2019)

Q2 2020 - RenVM Mainnet | Subzero

RenVM Mainnet is released May 27th, 2020.

RenVM Mainnet Dashboard (Network Stats) 3

Q3 2020 - Open-Sourcing RZL MPC 4

One of the most important technical goals for the project is getting to a stage where the team is comfortable open-sourcing the implementation of the RZL MPC algorithm.

Over the last month, the Ren dev team has begun decoupling the MPC implementation from the rest of the codebase, making it easier to iterate, test, and understand. As a part of this, they have been implementing new optimizations, building multiple versions of some parts of the codebase to gain even more confidence in its correctness, and moving to a new design centered around easy-to-understand state machines. All of this comes together to make a codebase that is simpler, safer, faster, and easier for everyone to test/review/audit. An overview of this logic, can be found here 4.

The Ren team has engaged with several auditing teams to review these changes, and once they are completed, will be ready to make the codebase available under the GNU GPL v3 license. This is planned for release by the end of Q3 2020, depending on the timeframes of these audits.

4. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

REN token contract: https://etherscan.io/token/0x408e41876cccdc0f92210600ef50372656052a38

RenVM 101 1

RenVM Technical Overview | Wiki

RZL sMPC Whitepaper PDF

Fees & Economics 2

Safety and Liveness

Github

Developer Documentation

RenVM Mainnet Dashboard (Network Stats) 3

Ren Resource Center

Contract Index

5. Link any available audits of the project. Both procedural and smart contract focused audits.

RenVM Audit Homepage 1

Smart Contracts by ChainSecurity, November 2019

Hyperdrive by ChainSecurity, May 2020

RZL MPC by Consensys Diligence May 2020 3

6. Link to any active communities relating to your project.

Telegram: https://t.me/renproject

Website: https://renproject.io

Twitter: https://twitter.com/renprotocol

Reddit: https://www.reddit.com/r/RenProject

Medium: https://medium.com/renproject

GitHub: https://github.com/renproject

Wiki: https://github.com/renproject/ren/wiki/Introduction

7. How is the applying collateral type currently used?

The REN token is used as a bond to run Darknodes, which power the RenVM network. REN has a one billion token fixed total supply, ERC-20 based. 100,000 REN are required to operate a REN node. REN’s only purpose is to serve as bond for Darknodes, which generate income based on network fees.

8. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

RenVM is a decentralized protocol and so does not bear responsibility for the collateral.

9. Where does exchange for the asset occur?

Centralized exchanges: mostly Binance (60% of volume). Further listed on exchanges such as Huobi, Bilaxi and Poloniex.

Decentralized exchanges: Uniswap, Kyber Network.

10. Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.

Presently I am not aware of any publicly available legal opinions addressing the project or token.

11. Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.

At the time of writing I am not aware of any regulatory registrations for the token.

12. List any possible oracle data sources for the proposed Collateral type.

API’s of centralized and decentralized exchanges.

13. List any parties interested in taking part in liquidations for the proposed Collateral type.

Not known. Most likely we would have to rely on markets.

6 Likes

I think ren is very interesting.

I had a couple questions.

What is typical daily volume in the renBTC etc. trades on the exchanges listed? I am also curious if there are any direct renBTC DAI pairs. Also what is the total outstanding value in the tokens to be listed?

Thank you in advance!

1 Like

Hi @MakerMan,

Take a look at the RenVM command center
https://mainnet.renproject.io/
Daily volume is about USD1.0 million, this is however not broken down into the individual ren tokens such as renBTC, renZEC etc, but as renBTC is about 99% of total volume it most likely has about the same share of daily volume.

Looks as if https://www.curve.fi/ is busy setting up the renBTC/DAI pair. Do note that this has no direct influence on the REN MIP6 application, this could however impact the renBTC MIP6 application (which is separate).

REN currently has a market cap of USD139 million.

2 Likes

cool thanks for the additioal info Planet_X

I am really interested in watching ren grow. I think for liquidations having a renBTC/DAI market would be really beneficial. I wonder abo.ut whether pricing oracles could be easily manipulated given the low volume. I saw people talking about wBTC pricing oracle on compound using BTC and not wBTC. I keep wondering if we need to utilize multiple pricing oracles to determine whether to liquidate or not. BTC has pretty large volume, but renBTC doesn’t so perhaps on some of these low volume tokens that have a high volume underlying we need to think about using some kind of volume weighted oracle price between the high volume underlying and the low volume primary. I guess that is something for the risk/oracle groups to mull over.

I also agree this may not affect the ren MIP6 collateral application but the renBTC specific implementation.

Sort of notable, Aave just listed REN earlier today:

They allow loans to be opened against REN at a LR of 200% (50% max starting LTV), with liquidation of position occurring if LR drops below ~153% (65% LTV liquidation threshold). It will be interesting to see the level of demand for loans against REN.

3 Likes