UMA and Ren Protocol are teaming up to offer a Bitcoin-backed stablecoin.
The price of UMA’s uUSD stablecoin will tend towards $1 as it approaches its maturity date, and will be redeemable for $1 of the collateral asset at expiry. In the meantime, the asset fluctuates in value in line with market demand. In the case of uUSDrBTC-OCT, the derivative will expire on October 1st.
With this new partnership, users can mint uUSD depositing Ren Protocol’s permissionless Bitcoin-wrapper, renBTC, at a 125% collateralization ratio.
Those who mint yUSD and provide liquidity to this Balancer pool stand to earn a weekly allocation of 10,000 UMA and 25,000 REN.
UMA, whose $900M market cap token was recently listed on Coinbase, is doubling down on its innovative priceless synthetics. It’s the synthetic assets protocol’s second liquidity mining opportunity, following the ETH yUSD campaign which started last month and continues today.
The move makes renBTC the second Bitcoin wrapper to be used as collateral on a major DeFi protocol after wBTC, and should continue to bolster demand for Ren Protocol’s trustless bridge, which has ported $171M in BTC to Ethereum since it’s inception less than half a year ago.