THELOGICALINDIAN - UMA Protocol unlocks permissionless leveraging of Bitcoin on the Ethereum arrangement But theres aloof one problem
DeFi platform, UMA Protocol, has afresh launched a “Yield Dollar” alongside a three-asset crop agriculture incentive. Unfortunately, the aggregation accouterment the constructed BTC has yet to administer ascendancy of the over 9,000 Bitcoin it currently holds.
UMA and Ren Protocol Announce Three-Asset Incentive
The new barrage was fabricated in affiliation with Ren protocol, a permissionless clamminess protocol.
UMA now enables its users to lock renBTC, an ERC-20 bread apery Bitcoin on the Ethereum network, into UMA. renBTC can again be acclimated as accessory to excellent uUSD, UMA’s Yield Dollar token, which can be acclimated to acquirement added renBTC and actualize a permissionless leveraged position.
This is the aboriginal time the atypical abstraction of a Yield Dollar has been activated to Bitcoin.
The uUSD badge is about a fixed-rate, fixed-term loan. Put simply, the badge is a abiding arrangement whose amount approaches $1 as it alcove its date of expiry—once expired, it is redeemable for $1 of the accessory asset.
The badge opens up a bulk of altered possibilities for end-users. Aside from actuality able to actualize a permissionless leveraged position application renBTC, UMA users will additionally be able to admission yield farming.
According to the company’s announcement, Risk Labs and Ren will action agriculture rewards to users that accord uUSD minted from renBTC and USDC to a Balancer pool.
As Balancer has whitelisted the Balancer pool, those application it to acreage will aggregate rewards from three DeFi assets at once—REN, UMA, and BAL.
The basin will accept 10,000 UMA tokens and 25,000 REN tokens every week, while BAL tokens will be broadcast according to Balancer’s own calculations. As rewards will be affected every 256 blocks, users that accommodate clamminess alike for a few hours will be able to aggregate rewards.
renBTC requires a bifold check
renBTC came into the spotlight beforehand this ages back it was found that it holds over 9,000 BTC in one wallet. The agreement is not decentralized yet; however, decentralization is on their roadmap. One distinct abode was begin to be authoritative over 9,000 BTC, account over $90 million.
Users additionally aloft questions apropos Ren’s abridged accomplishing of Multi-Party Computation. The better botheration in renBTC charcoal that all of the network’s assets are in the accepted accompaniment actuality custodied by the aggregation members.
https://twitter.com/ChrisBlec/status/1302998918020714497?s=20
renBTC was additionally begin not implementing MPC as they claimed to do. Instead, the aggregation had implemented basal Shamir’s Secret Sharing, which is cryptographically outdated.
Brian Spector of Qredo Network, which is allotment of MPC Alliance, told Crypto Briefing that creating a able-bodied crafted MPC cipher is not for the aside of heart.
“First the cipher should be developed from the bookish papers, again advised by professionals and again open-sourced. Only afterwards all of these accomplish are done, it should be deployed to production,” he said.
