Ren Protocol helped in Minting Synthetic Bitcoin Cash, Inter-Blockchain Liquidity

November

25

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The defi (decentralized finance) ecosystem has grown very little in 2020, and the whole design saw a remarkable increase is the Ren Protocol. It is the application that lets individuals reach inter-blockchain liquidity for several defi applications.

The Ren Protocol, decentralized finance (defi), the application creates waves in the crypto society. The reason for this is the total value locked (TVL) in the Ren-VM system is over 12,600 BTC worth $146 million currently.

The Ren protocol operates with zcash (ZEC) and bitcoin cash (BCH), as it gives cross-chain skills with three blockchains and later relates them to Ethereum. This post is just a guide to show you how easily the defi platforms can be used.

For making Ren-based artificial BCH, zcash (ZEC), and BTC users require to go the website bridge.renproject.io/. Most importantly, RenBCH is similar to renBTC, as it is a counterfeit form of BTC cash. When the tokens are minted, they can be bought on several defi applications such as Slope or Uniswap.

Spending $3 to $6 per transaction is for none to someone grasping many defi apps to create off of 6,000 USDC with an obscure flash credit. In an experiment, only $1 minted with a worth of BCH to examine the system, and it is not a suggested quantity with prevailing gas rates.

The Ren developers suggest leveraging over $10 worth of BTC, BCH, or ZEC. However, it is done with fees now; it’s the person should pay much more to be worthy. In this experiment, it took $6.52 in gas to achieve the smart deal, and there involved a small fee in the minting procedure.

Although Ethereum (ETH) is having high fees, some traders can leverage multiple transactions like flash loans that employ a blend of defi applications to profit remarkably. A $3-6 gwei fee is insignificant to one who carried this transaction, creating tens of thousands of bucks.

For this purpose, the very initial action you will have to perform is to collect some ethereum (ETH), bitcoin cash (BCH), and create a Metamask wallet. You will also require a BCH compatible wallet, and then you can visit the site.

After these steps, you can connect with your Metamask wallet and allow the connection with the Ren Bridge. When the wallet gets connected, the Ren Bridge can then be leveraged for minting renBTC, renBCH, or renZEC.

As in the experiment, $1 was used, worth 0.0035 BCH, for minting into renBCH, the app allows you to select the desired asset, quantity, and the destination order. The window will tell you about the amount the address holder will receive, 0.002797, as sent in the experiment.

By using the Ren Protocol for the minting of BCH, the procedure requires 15 confirmations to complete. After these confirmations, you need to submit connections to the Ethereum Network. So, the exchange for BCH to renBCH get completed.

About the author, Awais Rasheed

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