Customers of the Alameda-backed Ren Protocol threat shedding their cash in the event that they don’t take speedy motion, warned the undertaking group over Twitter on Thursday.
The cross-chain bridge mentioned the upcoming improve (Ren 2.0) to its present product (Ren 1.0) is probably not suitable with the prior model.
Disconnecting From Alameda
Ren encouraged customers to rapidly burn tokens issued by their bridge service in return for his or her underlying property or to “threat shedding them,” because of the improve.
Like different bridges, Ren lets customers deposit a cryptocurrency from its native blockchain (ex. BTC on Bitcoin) in return for a tokenized illustration of that asset (ex. renBTC), which circulates on Ethereum. This offers Bitcoin holders entry to the apps, charges, and transaction speeds obtainable on different blockchains.
The improve to Ren 2.0 is meant to make Ren an open-source and community-controlled undertaking, whereas additionally severing all ties with the now-bankrupt Alameda Analysis.
Whereas the improve has all the time been within the works, the Ren growth group has opted to hurry up the transition after final month’s chapter submitting. With the buying and selling desk’s collapse, the Ren growth group now solely has funding that can maintain it till the tip of the 12 months.
“Marking this occasion as the tip of Alameda’s involvement within the undertaking by sunsetting Ren 1.0, safeguards the popularity, integrity, and therefore long-term prospects of the Ren ecosystem,” mentioned Ren in a blog post dated November 18th.
The State of renBTC
Inside the submit, Ren famous that it might shut down Ren 1.0 “after 30 days,” leaving each mints and burns of their tokenized property unimaginable from then onwards.
MakerDAO has already agreed to eliminate renBTC as stablecoin collateral as a result of probability that the asset de-pegs sooner or later.
At current, renBTC stays price-pegged to BTC, buying and selling for $17,419 at writing time. Nonetheless, different Bitcoin-pegged tokens like solBTC collapsed after final month’s occasions, attributable to redemptions for the asset being immediately supplied by FTX.
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