[renBCH] MIP6 Collateral Application

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

@Planet_X. For the third time, thanks to @tbone for the majority of the content in this application.

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

renBCH is a tokenized representation of BCH on the Ethereum blockchain. It is an ERC20, and backed 1:1 with BCH locked in RenVM, a decentralized custodian. It is redeemable at any time for real BCH.

RenVM is a byzantine fault-tolerant protocol that provides ECDSA threshold key generation and signing via sMPC. What makes RenVM unique is that it does all key management and rotation using its sMPC based protocol that the team has pioneered. The state, inputs, and outputs of all programs that RenVM runs (e.g. ECDSA private keys) are kept hidden from everyone, including the Darknodes that power it.

This allows RenVM to securely manage (ECDSA) private keys of different assets, making it possible to mint or burn tokenized representations of these assets on external blockchains in a trustless, permissionless, and decentralized manner.

Presently, renBCH has a market cap of only USD110,000. However, BCH is the fifth largest market cap cryptocurrency at around USD 5.5 billion making renBCH potentially a large source of Dai. By including renBCH the Maker community can attempt to make the path of BCH into DeFi go through Dai instead of having all the various DeFi projects integrate renBCH separately. This should be a win for all parties involved.

  1. 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.

renBCH token contract: https://etherscan.io/token/0x459086f2376525bdceba5bdda135e4e9d3fef5bf

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: Telegram: Contact @renproject

Website: https://renproject.io

Twitter: https://twitter.com/renprotocol

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

Medium: Ren Project – Medium

GitHub: Ren · GitHub

Wiki: Home · renproject/ren Wiki · GitHub

7. How is the applying collateral type currently used?

renBCH is a one for one representation of BCH on Ethereum via RenVM. As an ERC20 it has a wide range of possible uses, perhaps mostly within the defi space.

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?

At the time of writing renBCH does not trade on centralized exchanges.

Decentralized exchanges: Uniswap V2.

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 Uniswap and other dexes that will list it.

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.

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I know it is somewhat of a contradiction to write a collateral application for a token and at the same time deliver some slightly salty comments on the relevant communities but I just feel I have to.

I might be very wrong about this but I feel the REN team simply feels too-cool-for-marketing. Just relying on sexier tech and the “yeah - but we are decentralized” argument is not going to win the bridging wars.

The BCH community appears totally uninterested in either defi or stablecoins. It is not a topic being discussed to any serious degree on either r/btc or bitcointalk. When the topic does comes up defi is often heavily dissed by the more senior community members. This implies that renBCH growth will come from whales and exchanges not bothering with community interaction and younger members that are not chronically damaged in the seating area from the bitcoin scaling debate. This is highly ironic as BCH in the form of renBCH and subsequently Dai collateral is likely to be the only useful application this coin will ever have. Reading up on this community is like listening to a bunch of dinosaurs arguing about who went extinct first.

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