Add renBTC as Collateral Asset on BSC

Summary

renBTC is a tokenized representation of BTC on the Binance Smart Chain blockchain. It is implemented as a standard BEP-20 contract, and backed 1:1 by native BTC locked in RenVM. It is redeemable at any time for native BTC. Individuals can acquire renBTC by minting it with native BTC via the RenBridge, or through exchanges.

We propose to list renBTC on Cream-BSC.

For

List renBTC with collateral factor at 0% on Cream-BSC

Against

Do nothing

Motivation

  • Bitcoin is the most liquid and highest trading-volume crypto assets (aside from USDT). renBTC is the easiest form of wrapped Bitcoin you can get on Binance Smart Chain if you are holding BTC in a regular Bitcoin wallet. You only need to visit RenBridge and send BTC to a gateway to mint renBTC for yourself on your Binance Smart Chain wallet
  • It is likewise very easy to go from renBTC to regular BTC on your BTC wallet by visiting the same bridge as mentioned above
  • renBTC on BSC is the same token as renBTC on Ethereum, making it easy for borrowers and lenders of renBTC on the Cream-Ethereum side to switch over to Cream-BSC
  • These factors can drive a lot of lending and borrowing volume for Cream-BSC

Risks:

  • As with any new token there are smart contract risks, but given that the contract is the same as on the Ethereum side, it is deemed to be safe
  • Bitcoin is not a risky asset compared to other crypto assets, but there is an additional risk that comes from RenVM, which is the custody risk. Because RenVM holds the BTC that backs renBTC, a problem with RenVM can cause issues with renBTC. Our highest priority is working on making the RenVM network as safe and decentralized as possible, and we’ll be launching many features over the year to make it more safe and decentralized

Background

The Ren Project launched RenVM, a byzantine fault-tolerant network that is able to securely in a decentralized manner do ECDSA threshold key generation and signing via sMPC, which allows RenVM to manage (ECDSA) private keys of different assets like Bitcoin, Zcash, Filecoin, and mint representations of these assets on smart-contract chains like Binance Smart Chain and Ethereum. Since launch in May this year, RenVM has processed almost $3B in total volume of Bitcoin, Zcash, Bitcoin cash, Filecoin and Dogecoin going to and from Ethereum.

RenVM is a crypto interoperability network that:

  • enables universal interoperability between blockchains: anyone can use RenVM to send any supported asset to any application on any supported host chain in any quantity.
  • has robust security*: large bonds, large shard sizes, and continuous shuffling make RenVM extremely difficult to attack, even for irrational adversaries. In the unlikely event of a successful attack, RenVM can restore lost funds through seizing bonds.
  • is scalable: as more assets are locked into the custody of RenVM, the algorithmic adjustment of fees allows RenVM to automatically scale its capacity to meet demand.
  • provides an optimal user experience: users can interact with multiple assets, applications, and chains with only one transaction.

*when rolled out in the next mainnet phases, currently the network is centralized to allow time for bootstrapping network security as more nodes in RenVM are coming online and more features are deployed

Specification

Relevant Ren Project documents

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