The advantage is accessing applications on Ethereum, so for instance, people have wrapped BTC and put it in lending and trading pools on Ethereum and earned yield on their BTC. Same could be done with ZEC, but you don’t get anything by default from RenVM (it takes a wrapping fee to pay for the service and for the security of the protocol), you decide yourself how you put your capital to work after it has been wrapped.
Indeed. Notably the Ren and UMA teams recently joined forced to create an incentivized pool for renBTC. They could likely do the same for renZEC given sufficient interest from ZEC holders.
zUSD backed by renZEC?
You could do this, all the DeFi primitives are there!
Hey all - back again to share some news. The information is summarized in my tweet to zooko.
Basically, a couple of Ren community members submitted applications on behalf of ZEC and BCH communities to enable rewards or renZEC and renBCH in [Balancer Labs]. So far, nobody with renZEC has created or contributed to a liquidity pool; however, as an example, one person in the BCH community contributed $168k in $renBCH and received 57 $BAL ($845) in 1 week which is roughly an instable ~26.2% APY.
So far, it seems renZEC’s primary use case is in Balancer for these rewards; however, we’re trying to have more protocols onboard renZEC, and we’re making progress with MakerDAO (money market DeFi protocol) to support renTokens as collateral. We had a zoom video call with them yesterday where Loong, the Ren CTO, presented to their community.
Feel free to reach out if you have any questions about any of this. If I don’t respond quickly here, you can reach me on Twitter or in the [Ren Telegram].
Is there any double spend or total coin count risk to ZEC when using renZEC?
All renZEC is backed 1:1 with native ZEC. Of course someone could try double-spending ZEC, but then it would make more sense to target a centralized exchange with high ZEC trading volume, than RenVM. If a double-spend attack would be successful, Ren governance could bring back the peg 1:1, although it would not be able to act fast, as decentralized governance is what decentralized governance is.
Btw I made a proposal to add ZEC to the lending and borrowing protocol C.R.E.A.M.: https://forum.cream.finance/t/proposal-to-add-zcash-renzec-on-the-ethereum-money-market/46
Would be awesome to get ZEC added there, as it would enable more permissionless, KYC free economic activities with ZEC in the Ethereum DeFi ecosystem. And you’d be able to earn yield on ZEC that otherwise might sit idle in your wallet.
(I’ll keep posting cool news related to ZEC on Ethereum, hope you folks don’t mind!)
A few days ago renZEC got listed on Matcha, which is an Ethereum exchange by the 0x project. Which means more liquidity to trade ZEC outside centralized exchanges!
Can we earn interest on our ZEC via Celsius?
damnit! not allowed in NY
Latest data on renZEC liquidity on Ethereum:
- 4,309 ZEC minted
- Of which 3168 ZEC is in the Uniswap pool
The growth over time can be seen here:
Would be awesome if we could follow Bitcoin’s footsteps:
Hey everyone, we recently put up a proposal to create a renZEC/wZEC Curve pool: https://gov.curve.fi/t/scip-14-renzec-wzec-pool/1123
For those who don’t know what Curve is, it is a stableswap exchange, so low-slippage trading for things like DAI/USDT/USDC within one pool, or renBTC/wBTC in another, and now we are proposing a ZEC pool.
wZEC is by Wrapped.com and we think fits better those who are comfortable with a regulated custodian managing the assets under custody. While Ren is transitioning into a decentralized custodian with the expanding MPC network.
If passed (and please vote if you can!), you’d be able to earn better yields for ZEC on Ethereum and have more liquidity there thanks to the Curve pool. And we are working on getting ZEC listed in lending protocols and stuff like that so the utility for ZEC on Ethereum increases!
Hey everyone, the vote for the renZEC/wZEC pool for Curve passed, with 100% in favor!
This means you’ll be able to yield farm with your ZEC without the risks related to impermanent loss as you would get in something like a ZEC/ETH pool on Uniswap, because renZEC and wZEC are stable to each other so the relative weights of these assets in the pool aren’t an issue in terms of USD value.
I’ll update when the pool is live and ready to go.
Terrific! Well done.
xDAI Honeyswap now has a renZEC/xDAI farm open: https://hny.farm/farms
High fees are diametrically opposed to the main goal of Ethereum - to be a convenient and cheap transport of tokens, in other words, so that Ethereum can be what it should be, it should not cost much. In this regard, ETH 2.0 will be a salvation not only in terms of increasing bandwidth, but also in terms of starting a trend of reducing its cost. POW adds a prime cost of the coin, POS does not have it at all.
In the long run, these trends will lead to the fact that bitcoin miners will no longer receive Commission fees and will lose the incentive to support the network. And this contradicts Satoshi’s idea that with reducing the reward for the extracted block, miners will compensated in the form of commissions for a large number of transactions in their own bitcoin network. To be honest, I see this inevitable process as a turning point and a prerequisite for Zcash to start taking the transaction mass from bitcoin, and also began to overtake bitcoin in increasing the hashrate. At least Zcash’s miners will be fed if Zcash will not be wrapped.
For those interested in earning some yield on their ZEC bags on Ethereum, a new opportunity just came! Bancor, which is an AMM exchange, has whitelisted renZEC for their new liquidity pools which offer impermanent loss protection, meaning you can keep single-sided exposure to ZEC whilst earning trading fees from other traders. Some info can be found here:
Also, the ZEC liquidity on Ethereum is growing by the day, we’re soon up on 6k ZEC which is cool!: