Are DeFi coins going to be liquidated? An article exploring the Ethereum cross-chain DeFi project Ren
Editor's Note: This article comes fromHot Wheels Community (ID: FHBT18), Author: Pepe, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Hot Wheels Community (ID: FHBT18)
Hot Wheels Community (ID: FHBT18)
, Author: Pepe, reproduced by Odaily with authorization.
Is it time to clear the defi currency? I vaguely heard that many Vs are on the way of selling or clearing warehouses, which seems to be true. On the one hand, when this thing starts to be talked about in the streets and alleys, writers are scrambling to chase related topics, which also means that the risk increases; on the other hand, from the perspective of trading From a perspective, it is not wrong to reach the profit target and get out.
But what if it's just the beginning? Who knows?
You must know that these "stars" in the mouth of the currency people today, even if they have doubled in a month or two, a considerable part of them are still in the position of falling 80%-90% from the high point of the last bull market. . So should we pay attention to short-term risks, or should we take a long-term view?
Think about it, I think everyone should have a different answer.
Hello everyone, I’m Pepe. In view of this wave of counterfeit season, there are a lot of restless coins. Many friends just listen to the code in the group, and they are also very confused. Note that this is not a solicitation for order delivery. It is mainly for the convenience of everyone to understand the project. Careful friends should be able to find that this year’s hottest ones are the targets of overseas technology flows. There will be a certain threshold for understanding. I hope that this research can Help everyone lower the threshold, at least know what they do, and you won't be too at a loss in the choice of currency, that's all.
The full name of the project we’re talking about today is RepublicProtocol. It’s a bit weird to translate it into “Republic Protocol”. Let’s call it by its token name REN.
It is also the underlying protocol of decentralized transactions, and it is considered to have caught up with the current defi trend, but my feeling is that when it comes to defi, it is not so mainstream, and its ranking is also in the 60s, but people who are optimistic at home and abroad are not yet Few, and many even think it may be the next Link (what does Link look like, in fact, our first picture today is the trend chart of Link in the past two years).
Why do you say it is like Link? This is not about the price, but the model. It seems that except for a fat man in a plaid shirt (the founder of Link often shows up), they are all similar. They are not pure DeFi platforms. And more like people who sell water and shovels in the gold rush, they provide services to various defi projects on Ethereum.
Link's cross-chain is mainly used as a decentralized oracle machine. At present, the main application direction is to provide price feeds for various types of defi, and provide accurate price data under the chain to smart contracts on various chains. Some people say that it is like A socket, as long as you need to feed the price of defi, and the currency that needs to be traded on the online defi platform, there is a need to link to other homes.
And Ren also has this "socket" feature. One of its most important features at present is that it can link currencies outside the Ethereum DeFi ecosystem to the ecosystem in the form of cross-chain.
The largest market - BTC, simply holding BTC in the wallet, has no interest, and cannot be deposited into platforms such as comp, which was very popular two days ago, like Ethereum and some tokens in its ecology. income.
One of the solutions to this problem is to transfer btc to Ethereum, such as locking 1 btc in the Bitcoin network, and correspondingly map and generate a btc erc20 token on Ethereum, as long as the defi platform does With the corresponding support, you can use this token to enjoy various financial services, loans, and leveraged financial services until the loss is over (haha, just kidding, it will not return to zero, it will not return to zero).
Many companies are already doing it to transfer BTC to Ethereum. The following is a recent statistics on the number of BTC on Ethereum:
It can be seen that thanks to the popularity of defi, it is in a state of proliferation and growth this year, and more than 5,000 btc has been accumulated so far, of which the largest share belongs to wbtc, accounting for almost 75%.
However, wbtc is centralized. You must know that there is no smart contract in the Bitcoin network, so it cannot lock the currency through an algorithm. In order to ensure that it corresponds to the mapping on the ether, the user usually transfers the Bitcoin to the project party to provide The address is kept by them or some third-party custodians, which has an asset security and trust issue.
As for Ren, he also mapped Bitcoin to Ethereum, but his family adopted a decentralized method:
From Bitcoin to Ethereum, through the RenVM virtual machine in the middle, the user's BTC will be distributed and stored by Darknodes (dark nodes) in the network, without trusting a certain center. According to the project side, the private key generated by this piece of assets is provided by The contract custody process is encrypted for each node, and a single node cannot move the mortgaged assets on the platform.
However, at present, his family seems to be more focused on providing services for DeFi. Now not only can btc be replaced by renbtc to run on the ether, but also bch and zec have also opened services. In the future, more ecological cooperation will be sought.
https://mainnet.renproject.io/
As for the token ren, one of the most important functions is that applying to become a dark node requires mortgage. As a security deposit, the current threshold is 100,000 ren.
If you become a node mortgage and go in, I heard from overseas communities that you can’t raise it for at least three months. The node’s income is the share of the platform’s handling fee. His family is now transferring to minting and redeeming the mapping token on the ether chain. Both directions are thousand. Note that this is charged by currency, that is, the node's income is btc/bch/zec.
The official mainnet of RenVM was launched at the end of last month, and there are 574 nodes so far:
The growth is still relatively fast. As you can see in the picture above, most of the locations are in the United States and Europe. The picture below shows the current lock-up situation of network cross-chain assets:
Mainly Bitcoin, there are about 120 of them up to now, and the locked value of all assets is 1.33 million US dollars, which is not much, but the growth situation is always in an upward state.
The above is a general situation of this project. One of the main features is that it uses a distributed method to do cross-chain DeFi. Many outsiders directly include it in the DeFi concept currency, but I think it is the same as other decentralized There are still big differences between trading platforms. What we are currently doing is mainly a third-party service, not just trading.
The other is the form of this dark node, which adopts a model of staking to earn income.
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Reviews about REN
Let me talk about the good things first. Although the main network has just been launched for less than a month, it may be a bit of a sense that the benefits are exhausted, but in terms of price, there are still some things to look forward to.
One is that there are only more than 500 dark nodes at present, and the total amount of his family is 1 billion. According to 100,000 nodes, all tokens are used as nodes to make 10,000 nodes. According to the mortgage amount of most POS networks, it is 50%-70% Forget it, his family should be able to achieve 5,000 nodes, even if they can't, two or three thousand nodes is still a lot of room away from now, and this part of the mortgage increase will have a positive impact on market sentiment.
Of course, whether this increase can be promoted depends on the fee income, that is, whether the above fundamental data can continue to grow. The nodes currently added should be considered early, so we still bet on its future development , the current income may be $100 a month?
The other is similar to link logic, to see if more projects can be linked behind it, the more ecological links, the more amount will be substituted, especially if the market value of these coins increases, the corresponding handling fee will also increase, the value of REN It will also grow naturally.
Another is the development of defi, and the more prosperous the defi market is, the better it will be for them.
But when it comes to the problem, a long-term problem is how big can his family do at this level? I read an article before that the valuation of his family can reach 2 US dollars, but how much assets should this be based on?
Think about it, how many people in your circle of friends will exchange bitcoins for tokens and deposit them in defi for financial management? I'm afraid more people don't even know how to use their wallets.
For products like ren, the data surface will really expand in the future, and the biggest need is probably the "artifact for hackers". If you transfer a sum of money into any DeFi ecosystem and turn it around, you will be unaware of it.
epilogue
I don't want to completely negate the decentralized platform, but at present, there are still too many uncertainties here. Don't look at the prosperity now, there are also many people calling for orders. It is only based on the rise of the currency. It's been a year, but have you seen many people mention it before? To put it bluntly, it is still the price.
From a certain point of view, those who are under the banner of decentralization now may need to be careful that one day they will run away and find no one.
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