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renBTC — Bitcoin via Ren Protocol (Historical Risk)

🧐 What it is:  (⚠️ DEPRECATED – HIGH RISK)

renBTC was an ERC–20 built to mirror BTC 1:1 via RenVM. After Ren 1.0 sunset in late 2022, the canonical redemption path vanished—liquidity thinned and the peg weakened. What remains is residual. Treat it as deprecated and high risk. At WAFFT Academy, we include this as a case study so you master cross–chain risks, redemption flows, and peg behavior before putting money on the line.

🔑 Key facts:

  • 🔢 Decimals: 8 (same as BTC).

  • 🧾 Canonical contract (Ethereum):0xeb4c2781e4eba804ce9a9803c67d0893436bb27d 

  • 🔗 Refs: Etherscan.io/renBTC

  • 🔍 Status: Deprecated (Ren 1.0 sunset). No native redemption.

🌐 Site & status:
🛠️ How it worked (short):

Like other wrapped tokens, renBTC used a lock–and–mint / burn–and–release flow: users deposited BTC into RenVM (BTC locked as reserve) → renBTC was minted 1:1 on Ethereum; to redeem, users burned renBTC and BTC was released on Bitcoin. Following the Ren 1.0 sunset, the canonical burn → release via RenVM is no longer available—exits rely on secondary–market swaps for renBTC; native redemption is not supported.

WAFFT note: this section is for learning from past designs, not investment advice. For renBTC specifically, 🚩 red flag—no native redemption, thin liquidity, and potential depeg. If you already hold it, verify pool depth and the BTC/renBTC spread, and test with a tiny amount first to gauge slippage. Not investment advice.

red-flag — renBTC

TL;DR🚨: renBTC = bridge sunset, no native redemption, thin liquidity, depeg risk → educational only.

💡 Why it matters:

renBTC was an early trust–minimized route for BTC → DeFi without a single institutional custodian. Its wind–down is a cautionary case🚨: when a bridge sunsets and native redemption disappears, liquidity thins and the 1:1 peg can break.

⚠️ Current status & risks:
  • 🚫 Redemption closed (Ren 1.0 sunset): the canonical burn → release path to native BTC is unavailable; any exit depends on secondary–market liquidity.
  • 💧 Illiquidity & depeg: very thin books/TVL → wide spreads and potential discounts vs. BTC.
  • 🔻 Operational & legacy: several UIs/pools were delisted; some dashboards are stale. Treat renBTC as deprecated—not for new positions.
✩ WAFFT take:

  • 🚫 Legacy—avoid new exposure:  Ren 1.0 was sunset in Dec 2022 and effectively inoperative by 2023; renBTC is deprecated.

  • ⚠️ Extreme risk: no canonical BTC ↔ renBTC redemption; remaining claims are uncertain.

  • 💧 Thin liquidity: expect wide spreads and heavy slippage—always check live depth before trading.

TL;DR🚨: DEPRECATED ASSET. Avoid any new exposure. If holding, unwind carefully via secondary markets with small test trades. Educational case study only.

👉 Up next: explore WETH — The ERC-20 Suit for Ether and see how Ethereum’s native coin learned to “wear” the ERC-20 standard, unlocking full access to DeFi and smart contracts. 💼🔗