1. Who is the interested party for this collateral application?
MakerDAO community in conjunction with the Ren community.
2. Provide a brief high-level overview of the project, with a focus on the applying collateral token.
renBTC is a tokenized representation of BTC on the Ethereum blockchain. It is an ERC20, and backed 1:1 with real BTC locked in RenVM, a decentralized custodian. It is redeemable at any time for real BTC.
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.
One of the core features of RenVM is bringing BTC to Ethereum (i.e renBTC). renBTC serving as collateral within the MakerDAO ecosystem is the sole focus of this application, although RenVM also supports renBCH and renZEC.
3. Provide a brief history of the project.
Q1 2018 - Decentralized Darkpools
Ren (Republic Protocol at the time) sold out a $35mm 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.
This is still utilized to test features prior to implementation on Mainnet.
The RenVM Mainnet Rollout Plan 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.
Q3 2020 - Open-Sourcing RZL MPC
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.
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.
5. Link any available audits of the project. Both procedural and smart contract focused audits.
6. Link to any active communities relating to your project.
7. How is the applying collateral type currently used?
renBTC is a one for one representation of BTC on Ethereum via RenVM. As an ERC20, it is/can be utilized in a variety of capacities within the DeFi ecosystem; lending, leveraging, trading, etc.
8. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?
No, decentralized protocol
9. Where does exchange for the asset occur?
Individuals can acquire renBTC by minting it with real BTC via the RenBridge.
The same minting process can be achieved on 3rd party platforms such as Curve Finance, and others who choose to integrate RenVM (as its SDKs are permissionless).
Further, renBTC is an ERC20 and can be found throughout the DeFi AMM ecosystem.
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.
Yes, legal opinion can be distributed individually upon request.
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.
12. List any possible oracle data sources for the proposed Collateral type.
Existing MakerDAO BTC/USD oracle.
Note: RenVM (and its ERC20 based assets) itself does not utilize oracles, renBTC is a 1:1 peg to BTC.
13. List any parties interested in taking part in liquidations for the proposed Collateral type.
An existing keeper has informally indicated they will take part in liquidations.