Equilibrium and Ren are teaming up to mutually beneficial ends. Equilibrium will gain access to RenVM’s BTC bridge on Polkadot, and RenVM will see increased demand for its services as a fresh surge of users peg in and out of BTC.
Bridges are important to Polkadot-based DeFi because they are the underlying foundation of its interoperability features. With enough bridges talking to each other, a crypto platform can accept and interact with every major cryptocurrency. Ren and Equilibrium are among the first projects to be harnessing bridges in this way, collaborating before even launching official parachains on Polkadot.
In technical terms, Equilibrium will add RenVM’s pallet to its own substrate, enabling the transfer of RenVM-supported assets to Equilibrium’s blockchain. At the same time, Equilibrium users will be able to lock BTC on RenVM’s BTC bridge and collateralize it for crypto loans and decentralized stablecoins, or lend it out to earn a yield on those locked assets.
This will generate new and increased demand for RenVM’s assets as an influx of new users (led there by Equilibrium) peg in and out of BTC. Overall, this partnership will enhance liquidity in the DeFi space and facilitate much more natural, intuitive transfers of value across blockchains.
Ren is a cross-chain protocol that uses secure multi-party computation to enable the fluid movement of value between any blockchain. With $280 million locked in its smart contracts, RenVM ranks 12th for total value locked (TVL) on DeFi Pulse. RenVM has moved more than $1.5 billion across two major blockchains since opening its doors in May 2020.
Ren is an open protocol that enables the movement of value between any blockchain.