The project team warned on Twitter Thursday that users of the Alameda-backed Ren protocol risk losing their funds if they don’t take immediate action.
Chain Bridge said that the upcoming upgrade (Ren 2.0) to its current product (Ren 1.0) may not be backward compatible.
Connects from Alameda
Cleaning encourage Users quickly burn tokens issued by the bridge service against their base assets or “risk losing” them as a result of the upgrade.
Like other bridges, Ren allows users to deposit cryptocurrency from the original blockchain (such as BTC on Bitcoin) in exchange for a token representation of that asset (such as renBTC), which is traded on Ethereum. This gives Bitcoin owners access to the applications, fees, and transaction speeds available on other blockchains.
The upgrade to Ren 2.0 aims to make Ren a community-controlled open source project, while severing all ties to the now defunct Alameda Research.
While the upgrade was always in the works, Ren’s development team chose to speed up the transition after filing for bankruptcy last month. With the trading desk collapsed, Ren’s development team now only has funding to maintain until the end of the year.
“Marking this event as the end of Alameda’s involvement in the project by sinking Ren 1.0 protects the reputation, integrity, and therefore the long-term prospects of the Ren ecosystem,” said Ren. blog posts On the 18th of November.
In the post, Ren indicated that they would lock down Ren 1.0 “after 30 days,” making it impossible to mint and burn their token assets from then on.
MakerDAO already has it agreed To give up PureBTC as collateral for a stablecoin due to the possibility of the asset being liquidated in the future.
Currently, the price of rhinepet is still pegged to the price of bitcoin, as it is trading at $17,419 at the time of writing. But other bitcoin related tokens like solBTC collapsed After the events of last month, due to the asset recovery provided by FTX directly.
Ren Post protocol users face potential liquidation losses after Alameda debuts on CryptoPotato.