A liquidity protocol built on RenVM that lets you start and finish on the same chain as the application you want to use. Rather than hold renBTC specifically on Ethereum, you could simply put renBTC in the protocol’s Ethereum address (controlled by RenVM) and get access to the protocol’s renBTC reserves on every chain. This has some key advantages.
The protocol could call contracts on other chains on your behalf using funds that already exist in its reserves on that chain. For example, rather than “cross” chains from Ethereum to Avalanche to do a swap and “cross” back to Ethereum, you could provide liquidity in advance and simply perform the swap with renBTC already on Avalanche and leave the resulting funds in the same Avalanche address in RenVM’s control under your name.
This would eliminate the confirmation time of two burns from each round-trip transaction, save the sender two mint and two burn fees, and accrue LP fees for providing liquidity. The protocol would be responsible for burning-and-minting what extra is needed in addition to load-balancing between reserves, which, along with increased usage of RenVM, may compensate for circumventing mint and burn fees. Ultimately, this efficiency could make interoperability faster, cheaper, and more viable through RenVM.
EDIT: Another major feature of such a protocol: native stablecoin interoperability. For example, the protocol could have native USDT in its pools on Ethereum and Solana, so if you deposit USDT on Ethereum, you get access to native USDT on Ethereum and Solana at the same time without ever having to wrap it anywhere. A native, 1:1 stablecoin bridge.
EDIT 2: One could build an interest-bearing, chain-agnostic wallet on this protocol that gives you access to super-fast liquidity and the best quotes on all chains from a single UI. You wouldn’t have to worry about which chain your liquidity is on or deal with chain-specific wallets and transactions; it would be as if you owned the same amount of renBTC on every chain at the same time.
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