Bootstrapping liquidity for renZEC on Binance Smart Chain

Exciting! What does this look like?

Will be able to show it off soon! While one could use RenBridge to do the wrapping:

You can’t do much else there. But having DeFi protocols add a native bridge themselves (it’s still using Ren underneath), users can wrap at the same place where they’ll be using it:

I’m hoping we can get them to add the ZEC bridge as well there, the above picture is a test deployment, not the final release. But either way if they add a ZEC gateway there, users can wrap, and then right after take part of the liquidity mining program, all on the same site. If that takes a little while for them to add, worst case people will have to use Ren’s bridge UI for the ZEC wrapping :slight_smile:

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This is great. Thanks for the visual illustration!

ValueDeFi launched a native ZEC bridge to Binance Smart Chain :tada: It is already live now, we’ve tested it and the implementation looks correct, but always I recommend folks to do test transactions and be careful in general. And as a general disclaimer, Ren can’t promise anything about the safety of third-party applications, don’t supply assets you can’t afford to lose etc.

Gas fees on Binance Smart Chain are very cheap so there is basically no cost to sending test transactions first. But remember to have a BSC address ready with BNB on it, otherwise you can’t pay for the transaction fees.

It can be found here: ValueDeFi
(While our own is here: RenBridge)

The stableswap pool for ZEC will likely be up tomorrow, with liquidity mining rewards ready as well. We will post and announce it on Twitter and our blog, and in here as well, and will appreciate any signal boosting we can get from folks here :handshake:

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The renZEC / ZEC-B pool is now up on Binance Smart Chain :tada:

This means you can start earning rewards there right now!

Instructions on how to do that:

  1. If you don’t have a BSC wallet address, you need to get that. We recommend MetaMask (to add BSC as a network on MetaMask, follow these instructions: Setting up Metamask for Binance Smart Chain (BSC) | by Stakingbits | Stakingbits | Medium), or Binance Chain Wallet.

  2. Make sure you have some BNB (in the BEP-20 form) in the wallet, to pay for transaction fees. Easiest (but non-private) way of getting that is through the Binance exchange:

  3. Get some renZEC and/or ZEC-B. We recommend getting 1:1 of each so that when you supply to the liquidity pool, you won’t get any slippage penalization (if you supply 100% on one side, there is a chance you’ll unbalance the pool significantly, which you get penalized for automatically by the pool).

To get renZEC: If you have native ZEC, you can mint renZEC through the RenBridge, or on ValueDeFi. Make sure you are on the BSC network and not on Ethereum!

To get ZEC-B: If you have native ZEC, you can deposit ZEC to Binance and then withdraw on the BSC network to get ZEC-B:

You can also buy it on an exchange, like on 1inch, but there is not a lot of liquidity for ZEC on BSC yet, so the recommended way is minting it yourself.

  1. Deposit renZEC and/or ZEC-B to the liquidity pool: ValueDeFi
    This will start earning you trading fees in ZEC from traders swapping renZEC <-> ZEC-B

  2. When you deposit the ZEC into the pool, you get liquidity pool tokens (LP tokens) that represents your share of the pool. To receive extra liquidity mining incentives, you need to stake these tokens here: ValueDeFi
    This will earn you vBSWAP tokens over time (ValueDeFi’s token) as an extra reward, which you can swap to ZEC later.

  3. Sometime later, ValueDeFi will launch another staking program where you stake the vBSWAP token to earn ZEC rewards, which we will announce. If you keep your vBSWAP tokens from the rewards above, you can then stake these to earn ZEC. You can also buy vBSWAP tokens from the market and stake them to earn more ZEC rewards. Given that this token can fluctuate in price, it is a risk to do this, which we can’t give any advice on.

I’ll keep everyone updated on the additional ZEC rewards that will launch later!

Here is our announcement of the pool: https://twitter.com/renprotocol/status/1387070248902352903?s=20

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Looks cool! I have a question, when you have ZEC in Binance, how do you turn that into ZEC-B? You say withdraw, but to where? A ZEC address? And how do I know that can support ZEC-B?

If you are able to use Binance (non-US user), and you have ZEC there, you are able to withdraw it on BSC directly, as demonstrated in this image:

In the address field you enter your BSC address (looks just like Ethereum addresses, starts with 0x…)

Thank you very much for your help much appreciated. I checked it again, what was happening was when I was withdrawing the ZEC from Binance when I was putting in the address I used the QR code option of the BSC address from Metamask but what was happening was there was a ‘ethereum:’ prefix on the address and I was getting an error message:

“The withdrawal address format is wrong. Please check the withdrawal address length and character count and try again”

I simply removed the prefix and it picked it up the address straight away BEP20 (BSC).

All sorted:)

Value DeFi on BSC just got hacked to tune of $11 million. They announced it about 30 minutes ago on their Discord, but they haven’t made any announcement on Twitter yet. I don’t know if the hack affects the wrapped-ZEC-related liquidity pools.

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Oh snap :anguished:

The ZEC pool is unaffected thankfully, anyone can withdraw their liquidity if they want (or keep it in still if you don’t mind the risk).

The big change is that the APY from being in the pool has significantly gone down, as most of the yield being distributed is in the form of their vBSWAP token, which of course dropped significantly in price :confused: (although it’s still being distributed as normally and you can harvest and sell it as before, and if the price recovers the APY rises as well)

Anyone still in the pool will also still get some ZEC rewards over time from people trading between ZEC-B and renZEC, it’s just pretty small initially until ZEC is a more traded asset in the BSC ecosystem.

It’s definitely a good demonstration of the risks in DeFi, and why you shouldn’t put any funds you can’t lose in these kinds of pools, and if anyone is withdrawing their ZEC now, that is completely reasonable to do :+1:

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