The trustless exchange of value is what underpins DeFi, and ensuring fluid value exchange regardless of blockchain is the next step in its evolution. Cross-chain liquidity, and what it enables, will have a profound impact on DeFi’s utility. This is exactly why we built RenVM.

In preparation for Mainnet, we wanted to demonstrate what RenVM is capable of and how easy it is to start building. With this in mind, we will be exploring a few current and future use cases for RenVM to help paint a picture of what’s possible, and inspire others to build.

What’s Possible with RenVM

Given that RenVM is composable, it can be integrated into any DeFi app. As a developer you have the flexibility to provide a native cross-chain experience for your users via GatewayJS and RenJS or simply add RenVM’s tokenized cross-chain ERC20s (renBTC, renZEC, and renBCH). All of these levels of integration are relevant to the below list, so let’s dive in.

1) Cross-Chain Decentralized Exchanges (DEX)

The first and most obvious use case for RenVM is using it to bring cross-chain assets to DEXs. This year is poised to be the year of decentralized exchanges and incorporating cross-chain assets into your DEX is an obvious strategic advantage. We’ve already built two examples of this; available on ChaosDEX and RenLab.

How to build:

1) Create a DEX adapter contract (see our Uniswap and Kyber examples).

2) Integrate RenJS or GatewayJS to generate and display gateway addresses.

3) Speed up wait times using a trustless on-chain liquidity pool.

2) Cross-Chain Lending and Leveraging

What’s DeFi’s killer app? Right now, it seems to be lending and leveraging platforms. So what happens when RenVM allows BTC, ZEC, BCH, and more to be incorporated into these products? Well, more liquidity equals a better product and a better user experience.

How to build:

1) Create an adapter contract that interfaces with a lending pool that supports shifted assets.

2) Integrate RenJS or GatewayJS to generate and display gateway addresses for lenders.

3) Ask users for their BTC/ZEC/BCH addresses when they initiate a borrow.

4) Improve on-boarding for your non-Ethereum lenders by integrating with the Gas Station Network.

3) Multi-Collateralized Synthetics and Stablecoins

Multi-Collateral DAI has arrived, but its still only backed by low liquidity ETH based assets. The more diverse set of assets backing DAI, the more secure it becomes. Bringing cross-chain assets to Multi-Collateral DAI not only allows DAI to be safer, but allows MakerDAO to grow in market share and dominance. We’ve already built an example of this at ETHDenver (see our MakerDAO BTC Vault demo, and try it yourself here).

How to build:

1) Build an on-chain stablecoin platform that supports renBTC collateralization.

2) Integrate GatewayJS so that users can collateralize the system with a single BTC transaction.

4) Mint Cross-Chain Assets as ERC20s

One of the easiest things to build with RenVM is an app that allows individuals to trustlessly mint/burn a 1:1 representation on the Ethereum blockchain as an ERC20. So simple in fact, it’s already been built. Roundabout is a permission-less, non-custodial way to transfer Bitcoin in and out of Ethereum via RenVM. It’s rather straightforward, send any amount of BTC to Roundabout, and a 1:1 BTC ERC-20 shows up in your MetaMask. While Roundabout only supports BTC for now, similar apps can be built to support ZEC and BCH as well. There are already two examples of this available on Roundabout and RenLab, so check them out.

How to build:

1) Use GatewayJS to mint renBTC/renZEC/renBCH directly to an Ethereum external account.

2) Set up an optional centralized REST API using our confirmation-as-a-service tutorial to speed things up.

5) OTC with no Counterparty Risk

RenVM can facilitate an interoperable escrow that allows OTC desks to mitigate counterparty risk for large trades. Alice requests 10 BTC for 535 ETH, Bob inputs the same request but for BTC. Once the trade is matched, and only once the trade is matched, RenVM releases the fund to each counterparty.

How to build:

1) Create a centralized API to accept non-custodial swap orders and host RFQs.

2) Require quote submitters to mint renBTC on Ethereum (into an escrow) as part of opening an order.

3) Once a quote is accepted, use the escrow to execute the swap.

6) Multi-Collateral Crowdfunding

ETH rose to prominence in 2017 in part because it was the main platform for funding ICOs. With RenVM, any digital assets can be used to fund a project and it can even be automatically converted to DAI (or any other ERC20) at the time of sending.

How to build:

1) Build an adapter contract that sits in front of a normal ICO contract, but allows users to use renBTC/renZEC/renBCH.

2) Integrate RenJS or GatewayJS to generate and display gateway addresses for payments.

3) Integrate with the Gas Station Network to eliminate the need for users to have ETH when paying.

7) Layer 2 Network for Cross-Chain Assets

BTC, ZEC, BCH on side chains like Plasma can facilitate faster & cheaper transactions, providing similar capabilities to that of the Lightning Network but in DeFi.

How to build:

1) Build an Ethereum contract that can accept BTC and when it does, it opens a state channel.

2) Abstract ETH away using an integration with the Gas Station Network.

3) Integrate RenJS or GatewayJS to generate and display gateway addresses for new channels.

8) Streaming Bitcoin Payments

Bringing BTC and other assets into real-time finance streaming services such as Sablier. We’ve already built a demo of this and it’s available on RenLab.

How to build:

1) Create a smart contract that streams renBTC tokens to another Ethereum address.

2) Abstract ETH away using an integration with the Gas Station Network.

3) Allow users to simply provide a BTC address and burn renBTC to this address when the user withdraws their BTC (so they never need to interact with the renBTC representation).

9) Multi-Collateral Basket Investment Vehicles

This trend is not new in traditional finance, nor in the DeFi space, but bringing cross-chain assets to these baskets will increase the utility and robustness of these investment vehicles.

How to build:

1) Create an basket-investing adapter contract similar to Token Sets that supports renBTC.

2) Abstract ETH away using an integration with the Gas Station Network.

3) Integrate RenJS or GatewayJS to generate and display gateway addresses for new deposits.

For The Future

10) Game Token Converter

As digital assets begin to be incorporated into gaming ecosystems, DAI, NFTs or otherwise; RenVM can facilitate seamless interoperability with existing and not-yet-built blockchain ecosystems that are either solely gaming focused or prove themselves as beneficial to the gaming industry and its players.

11) A Global Cross-Chain Permissionless Liquidity Pool

Any asset, any chain, any amount, transferring liquidity to any application via Ethereum based smart contracts. No one entity can censor it and may have a profound impact on DeFi’s future liquidity offerings.

12) Universal Stablecoin Converter

Want to bring Facebook’s Libra, China’s DCEP, and USDT Omni’s liquidity to Ethereum as an ERC-20? The ultimate nexus for digital forex markets; when RenVM adds support for these assets and integrates with projects like Curve Finance, a universal FX market emerges. Bringing these assets to DeFi may serve as the single most important confluence of infrastructure in the decentralized ecosystem.

Have an app idea of your own? Join the Ren Alliance

If you plan on building with RenVM, join the Ren Alliance and receive these benefits. Filling out the Ren Alliance application is easy and should take about five minutes.

Looking forward

Mainnet is almost upon us, so get ready and start building. While we are waiting on our security audit to finish up, come join our developer chat to ask any questions about building with RenVM. With RenJS, GatewayJS, CaaS and GaaS completed, the tooling and core infrastructure for integrating RenVM is complete; so those looking to integrate have all the components needed for smooth UX regardless of application type.

RenVM is contributing to the cambrian explosion of DeFi utility applications, so we can’t wait to get started.

— Loong Wang, CTO, Ren