Mar 10 | 5 min read
The Ren Project works through their technology called Ren Virtual Machine (RenVM), which allocates a platform specific token (called renTokens) to a user’s crypto investment. For example, if an investor wants to receive interest for the Bitcoin they own on the Ethereum network, they are able to transfer their BTC through RenVM. RenVM will create a representation of a specific token such as Bitcoin (BTC) in the form of renBTC. Each renToken represents the exact value of the original token. RenVM launched in May 2020, after completing a $34 million initial coin offering in 2018.
RenVM is operated by a decentralized network of machines called Darknodes, which operate in a similar way to Bitcoin miners. Darknodes cannot see how much money is being sent or what address it is being sent to. It ensures user privacy by using an algorithm called Shamir’s Secret Sharing. To run a Darknode, the Ren project requires a user own 100,000 REN staked as collateral and is running the Darknode software from a Virtual Private Server (VPS). Through a Proof of stake consensus model, the project allows anyone to become a RenVM validator, however this requires staking 100,000 REN tokens.
By operating in this way, the Ren Project functions as a trustless system, allowing investors to make trades anonymously. Unlike centralized exchanges, it also means the protocol will not be able to create more tokens.
Founded in 2017, Ren was one of the first names to show up as a bridge to move cryptocurrencies between different blockchains. By allowing investors to bridge their assets, Ren’s goal is to make DeFi more accessible by removing barriers to accessing liquidity between blockchains.
Taiyan Zhang and Loong Wang, both software developers, co-founded Ren in 2017. Ren was originally called Republic Protocol and was rebranded to Ren in 2019. Zhang has been a part of the DeFi ecosystem since 2016 and has advised several blockchain products.
As of December 2021, the Ren Project has stated the community is “in a pre-DAO state”. Members are able to submit proposals and have them reviewed and voted on, but do not have full control of Greycore members yet. However, the community is able to control over setting the RenVM fees, and develop the governance process. You can read more about Ren governance and the process towards becoming a DAO on the project’s governance forum.
In 2018, Ren sold 60.2% of the total supply to investors in a presale of the token. The REN token is classified as a work token, with its only purpose to serve as a bond for Darknodes.
As one of the most trusted bridge projects in the DeFi space, Ren has been a part of DPI since its inception. REN is unique in that it enables anonymous trades of any token to any blockchain.
You can gain exposure to the Ren Project and other leading blue-chip DeFi assets by buying DPI which includes REN tokens. You can buy DPI directly from the Index Coop by connecting your wallet to the Index Coop app.
If you’re looking to exchange a fiat currency, like the U.S. dollar, directly for DPI, then you’ll want an Ethereum wallet like Argent, Gemini, Metamask, or Rainbow. With each of these wallets, you can connect to your bank account or debit card, which allows you to exchange fiat currencies directly for Index Coop products like DPI.
The DeFi Pulse Index ($DPI) is a digital asset index that tracks the performance of “blue chip” decentralized financial (DeFi) assets across Ethereum. It combines the features of an ERC-20 token and a traditional structured product to create a 21st-century digital upgrade to traditional structured products.
DPI is capitalization-weighted based on the value of each token’s circulating supply and aims to track projects that have significant usage and show a commitment to ongoing maintenance and development.
As a bundled crypto asset, you effectively own all of the underlying tokens and can redeem your units of $TOKEN for the underlying tokens, a feature of traditional structured products that is typically reserved for large, institutional investors.
As an Ethereum-based crypto-asset, $DPI can be used productively throughout DeFi with opportunities for liquidity provision (LP), borrowing and lending, yield farming, and collateral debt position (CDP). DPI was launched jointly by Set Protocol and DeFi Pulse Inc., and was the first product to be managed by the Index Coop.
Index Coop is a decentralized autonomous organization (DAO) that powers structured decentralized finance (DeFi) products and strategy tokens using smart contracts on the blockchain. We offer a suite of sector structured products, leverage and inverse products, and yield-generating products. We aim to create products that are simple to use, accessible to everyone and secure. Our products are built on Set Protocol, a twice-audited, self-custodial DeFi tool that allows for the creation and management of Ethereum-based (or ERC-20) tokens. Among users, partner protocols, and our composable products, Index Coop maintains one of the largest partnership networks in the DeFi ecosystem.
First, you’ll need to create an Ethereum wallet like Argent, Metamask, Gemini, or Rainbow.
Next, you’ll set up your new wallet and connect your bank account.
You can also earn or buy DPI tokens directly via your favorite decentralized exchange.
Disclaimer: This content is for informational purposes only and is not legal, tax, investment, financial, or other advice. You should not take, or refrain from taking, any action based on any information contained herein, or any other information that we make available at any time, including blog posts, data, articles, links to third-party content, discord content, news feeds, tutorials, tweets, and videos. Before you make any financial, legal, technical, or other decisions, you should seek independent professional advice from a licensed and qualified individual in the area for which such advice would be appropriate. This information is not intended to be comprehensive or address all aspects of Index or its products. There is additional documentation on Index’s website about the functioning of Index Coop, and its ecosystem and community.
You shall not purchase or otherwise acquire any of our token products if you are: a citizen, resident (tax or otherwise), green card holder, incorporated in, owned or controlled by a person or entity in, located in, or have a registered office or principal place of business in the U.S. (a “U.S. Person”), or if you are a person in any jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized (together with U.S. Person, a “Restricted Person”). The term “Restricted Person” includes, but is not limited to, any natural person residing in, or any firm, company, partnership, trust, corporation, entity, government, state or agency of a state, or any other incorporated or unincorporated body or association, association or partnership (whether or not having separate legal personality) that is established and/or lawfully existing under the laws of, a jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized). You shall not resell or otherwise transfer any of our token products to any Restricted Person. The transfer or resale of any of our token products to any Restricted Person is not permitted. Click here to view the list of Tokens Restricted for Restricted Persons. You shall read the Terms of Service and use our Website in compliance with the Terms of Service.
Information is for educational and illustrative purposes only. The Index Cooperative is not engaged in the business of the offer, sale or trading of securities and does not provide legal, tax, or investment advice. Cryptocurrencies and other digital assets are speculative and involve a substantial degree of risk, including the risk of complete loss. There can be no assurance that any cryptocurrency, token, coin, or other crypto asset will be viable, liquid, or solvent.No Index Cooperative communication is intended to imply that any digital assets are low-risk or risk-free. The Index Cooperative works hard to provide accurate information on this website, but cannot guarantee all content is correct, complete, or updated.