Ren Project: A Multichain Bridging Protocol in the DeFi Pulse Index
The Ren Project (REN) is one of 17 tokens currently held in the DPI product.
March 10, 2022
The Ren Project (REN) is one of 17 tokens currently held in the DPI product. Ren Project (REN) utilizes smart contracts to allow investors to move any token from any blockchain. Investors can transfer tokens like Bitcoin and Doge onto the Ethereum and Binance blockchains, for example.
What is the Ren Project?
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.
Who created the Ren Project?
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.
Ren Project Governance and Tokenomics
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.
Why was REN included in DPI?
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.
How can I buy REN?
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.
What is 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.
About 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.
How to buy Index Coop products with fiat currencies:
- 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.
- Once you’ve deposited fiat currency in your wallet you can exchange it for Index Coop products like DeFi Pulse Index (DPI) or the Metaverse Index.
You can also earn or buy DPI tokens directly via your favorite decentralized exchange.
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