RenBTC is an ERC-20 token on the Ethereum network that is pegged to Bitcoin. Because every RENBTC can always be redeemed for one Bitcoin, its value generally stays close to the Bitcoin market rate.

The Ren platform mints RenBTC. This open protocol grants access to inter-blockchain liquidity, allowing assets from other chains to move into Ethereum decentralized applications (DApps). It primarily supports Bitcoin (BTC), Bitcoin Cash (BCH), and Zcash (ZEC).

RenBTC competes directly with Wrapped Bitcoin (wBTC). Minting is simple: users send BTC to RenVM, which secures the asset and mints an equal amount of renBTC tokens on Ethereum.

Unlike other Bitcoin-backed tokens, renBTC is not synthetic and does not use liquidation mechanisms to maintain its peg to BTC. Instead, it uses a direct supply peg, ensuring there are always enough BTC in reserve to cover the circulating renBTC supply.

Redeeming renBTC is as easy as minting it. Users send their renBTC back to RenVM (paying a small gas fee), which releases native Bitcoin to their address. The renBTC tokens are then destroyed, lowering the supply to match the reduced reserves.

Taiyang Zhang, who serves as the current CEO, established Ren (previously known as Republic Protocol), the company responsible for the Ren ecosystem. An early cryptocurrency adopter and proficient developer, Zhang also co-founded Virgil Capital, a quantitative crypto trading firm with multiple strategies, and was a founding member of KeeperDAO.

Loong Wang, the present CTO at Ren, is another key figure on the team. His background includes serving as the lead software developer for Neucode and working as an academic tutor at the Australian National University. The broader team consists of over 30 people, including three additional software developers, one blockchain developer, and a researcher.

RenBTC stands out from other wrapped Bitcoin tokens primarily due to its fluid value exchange mechanism. Rather than holding Bitcoin in a centralized custodial service, RenVM relies on a decentralized network of nodes known as Darknodes. This setup allows users to mint and burn tokens at will without undergoing KYC procedures. The protocol is capable of processing hundreds of transactions per minute and has never experienced overload.

Furthermore, Ren provides specialized adapters that enable direct integration of RenVM into various decentralized applications. Consequently, users can employ Bitcoin (as RENBTC) on lending platforms or decentralized exchanges (DEXs) seamlessly, without facing additional hurdles. It is also worth noting that the ECDSA private keys within RenVM remain secret, resulting in a trustless, permissionless, and decentralized BTC token on the Ethereum network.

The circulating supply and total supply of RenBTC are identical, shifting dynamically as ERC-20 renBTC tokens are minted or burned. There was no initial token sale for RENBTC, nor is there any allocation reserved for the team.

As of December 2020, slightly more than 14,000 BTC had been wrapped into RENBTC, resulting in a market capitalization of $321.9 million. This figure is expected to vary significantly over time, since the market cap relies on both the current price of Bitcoin (BTC) and the quantity of BTC held within the renBTC reserve.

RenBTC functions on the Ethereum network, which is regarded as one of the most secure blockchains in use today. The security of these ERC-20 tokens relies on thousands of Ethereum miners working together to uphold the blockchain’s integrity and protect transferred assets.

Furthermore, the RenVM protocol employs a secure multiparty computation framework. This system enables untrusted Darknodes to execute scripts without exposing inputs or outputs to other parties. To participate, Darknodes are required to stake 100,000 REN tokens as collateral and receive fees for supporting the renBTC network.

ECDSA private keys remain concealed, even from the nodes themselves, ensuring that RenVM produces and signs data securely. Consequently, no attacker can stop users from minting renBTC or redeeming their BTC at their discretion.

The protocol asserts that it is Byzantine Fault Tolerant. This implies that scripts will continue to operate and keep secrets hidden, even if Darknodes go offline or behave fraudulently.

Holders of Bitcoin can generate renBTC at any time through the RenVM protocol. Alternatively, the ERC-20 version of the token is available for direct purchase on major centralized platforms such as Binance and Huobi Global, as well as on decentralized venues like Uniswap and 1inch Exchange. Data from December 2020 indicates that the most frequently traded pairs for renBTC are renBTC/BTC, renBTC/WETH, and renBTC/USDT.