The “trustless” cross chain bridge, Renand the public platform for synthetic assets, UMA, teamed up with Start a Bitcoin backed return dollar called UUSDas well as a joint cash mining rewards program.
The partnership will result in a product that Allows investors to use Bitcoin without authorization on the Ethereum network. He uUSD It is the second AMU return dollar product after the Ethereum-backed return dollar called yUSD, which was launched in July 2020. The concept was a huge hit with over 10 million YUSD minted in the past two months.
In a relationship with @UMAprotocolWe are introducing a BTC backed yield dollar along with a joint liquidity mining rewards program. http: //t.co/99kEVqP9bC
– Ren (@renprotocol) September 7, 2020
A dollar return is similar to a stable coin, but has some significant differences. It has an expiration date like a futures contractand as that date approaches, the price approaches $ 1. Until the expiry, can be redeemed for USD 1 security at the exact time of the expiry. Uma describes it as a “term loan” as the return dollars on coinage are typically less than $ 1.
Users buy renBTC, a bitcoin competitor to wBTC, and block it as security for UMA to mint uUSD tokens. These return dollars can be used to buy more renBTC or invest in other DeFi protocols.
In addition to the new yield dollar, There will be a joint incentive for Ren and UMA’s liquidity agriculture to make guarantee deposits. This allows investors to earn UMA and Ren tokens to provide the Balancer Fund for UUSD with liquidity that can be paired with USDC. RenBTC’s return dollar has a collateralization ratio of 125%, which expires on October 1st.
In order to motivate the high yield farmers, in addition to the BAL tokens, according to the protocol calculations, the pool receives 10,000 UMA tokens and 25,000 REN per week. The annual percentage is not fixed and depends on how much liquidity is provided during the seven-day period.
The offer is positive news for the wrapped bitcoin marketwhich is growing rapidly and allowing high yield farmers to work their BTC stocks on ERC-20 based protocols. In the past three months, the amount of Bitcoin on the Ethereum network has increased by 1350% and is currently just under 78,000 BTC, according to btconethereum.com. Of these, about a quarter or 18,732 are renBTC.