renBTC
Crypto Overview
Purpose and Utility
renBTC is a tokenized representation of Bitcoin (BTC) on the Ethereum blockchain, created through the RenVM protocol. It allows Bitcoin holders to use their BTC on Ethereum's DeFi ecosystem while maintaining actual ownership of the underlying Bitcoin.
Business Model and Operations
The protocol works by having users deposit BTC, which is then held by a decentralized custodian (RenVM), while an ERC-20 token representing that exact amount of BTC is minted on Ethereum. When users want their BTC back, they burn the renBTC and receive their original BTC.
Real-World Adoption
renBTC has seen significant usage in DeFi applications, particularly for providing Bitcoin-backed liquidity on Ethereum. The protocol has processed billions in volume since its inception, though usage has declined since 2022.
Platform Development
While RenVM, the protocol behind renBTC, had active development, it's important to note that in December 2022, the Ren protocol team announced they would be sunsetting the current iteration (Ren 1.0). Users were advised to bridge their assets back to their native chains.
Token Distribution
renBTC is a 1:1 representation of Bitcoin, so there isn't a separate token distribution model. Each renBTC is backed by an actual Bitcoin held in the protocol.
Crypto Impact
To assign a comfort level investing in renBTC from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to renBTC.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.