Name : Implement 0 confirmation swaps
Category : Protocol
Status : Draft
Overview : The fantastic work that has been started by 0confirmation needs to be taken in-house by Ren’s development team.
Before this post is misinterpreted please hear me out.
As has often been discussed, the idea of renXXX assets is for them to have high velocity, keeping the TVL low. Right now that hasn’t happened because the only usecases for the wrapped tokens is yield farming which involves parking the tokens and earning a return on them.
The only way REN is going to be used meaningfully by any DEX, is if there are 0 confirmations otherwise it will simply not work. Try to imagine the user flow where on uniswap/sushi you need to deposit your BTC, wait for 6 confirmations to then trade the token you wanted by which the price is over 1 hour old (i’m assuming BTC as that has the highest market cap and is the only asset that moves the needle for now and most likely will be for some time).
It’s just too much friction, same for integrating into MEW (i know it’s been done but barely used) and ideally Metamask.
What I’m proposing is that REN take over development of this technology to offer 0confirmations and really help this take off. If this is a merger, acquisition or the REN start from scratch outright is up to Loong and co. In my opinion this functionality is what will move REN forward the most, even more than integrating with other chains/assets in the short-term. And I would add that in my opinion it’s too risky to leave such a core part of the envisaged functionality to developers outside of the REN team who have more than proven their technical ability + have the resources to really make this a huge success.
Thanks for listening, open to all feedback/opinions.