Inter-Blockchain Liquidity: Minting Synthetic Bitcoin Cash With the Ren Protocol

The decentralized finance (defi) ecosystem has matured quite a bit in 2020 and one project that’s seen some growth is the Ren Protocol. The application that allows people to access inter-blockchain liquidity for a number of defi applications. The following post is a step-by-step guide on how to leverage the Ren Protocol with Bitcoin Cash and a Metamask wallet.

This week news.Bitcoin.com tested the Ren Protocol, another decentralized finance (defi) application that has been making waves within the crypto community. This is because the total value locked (TVL) in the Ren-VM system right now is more than 12,600 BTC ($146 million).

Defi Pulse data shows that the Ren-VM Protocol has around 12,600 BTC locked into the system on August 23, 2020.

The Ren protocol also works with zcash (ZEC) and bitcoin cash (BCH) as well, as it offers cross-chain capabilities with three blockchains and then connects them to Ethereum. In order to give our readers some perspective on how the project works, we tested the Ren Bridge to mint a very small fraction of renBCH.

In order to create Ren-based synthetic bitcoin cash (BCH), zcash (ZEC), and bitcoin (BTC) users need to visit the website bridge.renproject.io/.

Essentially renBCH is just like renBTC, as it is a synthetic form of bitcoin cash. After the tokens are minted they can be leveraged on a number of defi applications like Curve or Uniswap.

The following guide illustrates how easy it is to utilize these defi platforms, but it also shows how Ethereum is suffering from fee issues.

Paying $3 to $6 per transaction is nothing to someone leveraging various defi apps in order to yield off of 6,000 USDC with an intricate flash loan. In my experiment, I only minted $1 worth of BCH to test the system for this article and this is totally not a recommended amount with current gas prices.

On Saturday, August 22, 2020, I minted $1 worth of bitcoin cash (BCH) as a test to see how the platform works. It is recommended by the Ren developers to leverage…

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