Hunt For One Million Bitcoin Leads to $100 Million Seized
June 22, 2020 5:24 pm
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A dapp that launched just this month has received an incredible 293,000 bitcoins, worth $3 billion, to tokenize them on the ethereum blockchain.
RenBTC, a method to tokenize bitcoin on ethereum in a decentralized way through ren nodes, is still far too new to be included in many stats sites, but its public address reveals the astonishing speedy rise of this project specifically and decentralized finance (defi) in general.
“User deposits BTC into a gateway address which is a Bitcoin script that can only be spent by RenVM, and RenVM immediately consolidates the BTC into its address,” Loong Wang, Ren’s CTO, told Trustnodes earlier this month.
We took no screenshot at the time of the address so can’t tell how much was processed at that point, but its current final balance is close to overtaking the two years old Lightning Network (LN) in assets under management.
LN has about 950 bitcoins in its network, while ren as we can see above currently has nearly 730 btc.
Just how much volumes LN has processed is not too clear, but you’d think it is far, far lower than $3 billion because you can’t do anything with your bitcoin on LN.
While on ethereum there’s tons of things you can do, like get a 15% interest rate on your bitcoins by depositing them on the Curve ren pool (featured image) where others then use your bitcoin for market making, arbitrage, flashloaning, and basically to disrupt Wall Street itself.
The best part is all of this is through code rules which means the borrower or the user of your asset can’t just not give them back or go bankrupt because of complex algorithms of collateralizations that in effect give your coins over to the code.
The code of course doesn’t cheat, presuming it has been audited and it does do what it says and it has no bugs, so if the borrower’s assets start falling, then the code automatically – usually with the help of many bots – attributes ownership accordingly.
So that this very new project has already processed $3 billion and the month still has many days to go, is surprising and considerably so, but maybe not too surprising as interest rates for bitcoin went as high as 150%.
Copyrights Trustnodes.com
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