Rena Finance

The Rena Vision for Finance

We have undoubtedly entered a technical revolution. Decentralized finance is advancing faster and faster, and not showing any signs of slowing.

Projects that have been successful in DeFi are the ones that do things that did not exist in traditional finance. Compound, Uniswap, and Balancer are good examples. They all do things in a new way.

Our future is bright and prosperous, and Rena Finance is positioned to not only keep the pace of DeFi's advancement, but to accelerate it. RenaSwap could not be built in the old world. Not in the old system. It needs a new system. New rules. New players. New opportunities for everyone.

It comes down to liquidity. Most people are aware that financial liquidity is what makes institutions so powerful and why retail participants can’t do what they do. Liquidity is the fundamental tool in the expansion of such an entity. This is why Rena Finance matters.

If we were to add more trading volume to the DEXes based on a decentralized, automated market maker protocol, then what have we created? The most effective liquidity incentive machine, putting the power of liquidity back into the hands of the collective, the community.

Incentivized liquidity allows us to start building an open financial volume market. With this financial volume stream, we can allow new DeFi businesses to tap into the stream and build new ideas.

RenaSwap is the first DeFi protocol to offer decentralized Volume-as-a-Service (VaaS).

Summary

​ is a one-sided automated market maker-based decentralized token swap protocol which utilizes token wrappers, buy-only liquidity pairs, and circulating asset flows to amplify volume for all tokens integrated with RenaSwap. We call this Volume Aggregation as it gives new life to all participating projects in the form of increased volume, which attracts more liquidity, increasing incentives for Liquidity Providers. Its specialized design utilizes RENA, our deflationary ERC-20 utility token, to tap into the numerous capital flows moving through interoperating DEXs and share a percentage of those flows with ETH/RENA liquidity providers.

We view RenaSwap as a regenerative energy system where each component (in this case each token) receives greater benefit than that which is supplied to the system. RenaSwap creates this energy through generative trading volume, smart asset routing, token wrapping, and cross-DEX price spreading through rebalances. RenaSwap has a primary power source (), a power distributor (), and a backup power source (). RenaSwap's Volume Aggregation and asset recirculation adds volume, and therefore greater incentive for liquidity providers in the RenaSwap ecosystem as listed tokens and aggregate trading volume grow together. This is how Rena Finance's decentralized Volume-as-a-Service is achieved.

The ITS token is the governance utility token for the RenaSwap ecosystem. Rena Finance plans to fully decentralize the decision-making of its ecosystem through ITS.

The Future of Rena Finance

RenaSwap is the foundation of the Rena Finance ecosystem and aims to grant all participating projects and users a net increase in trading volume and, consequently, liquidity incentivization. As the ecosystem grows and more tokens are listed, the volume benefits for all projects and users will be compounding (more projects results in more aggregate trading volume for the entire ecosystem). For many farming tokens and volume-based smart contracts, trading volume is a matter of life and death. It is with this core problem in mind that we designed RenaSwap: to boost the volume of and demand for RENA, ITS and partnering projects.

The Rena Finance DAO plans to seek valuable partnerships while continuing to develop innovative DeFi solutions and new assets to incorporate within RenaSwap. Soon after launching, the DAO will be directly involved in approving projects for grants and RenaSwap listings while providing additional assistance for integration. As the project evolves, we will guide the protocol towards full decentralization, community governance (by ITS holders), and empower projects to list their tokens without any intervention by the Rena Finance team. The possibilities for expansion are limitless and we expect there to be many more use cases for RenaSwap that we have yet to discover.

RenaSwap - A Buy-Only Volume Aggregation Protocol

RenaSwap contains our key innovations and will be the foundation for a majority of our future development within DeFi. The key concept of RenaSwap is to use a Token Wrapper in order to create One-Sided Liquidity pairs. In doing so, we are able to wrap and pair any ERC20 token, opening the doors to all sorts of new protocols currently unseen in DeFi.

RenaSwap will debut with three wrapped tokens: rETH, rRENA, rITS. These tokens allow the protocol to remove the underlying asset used to buy the token that an rToken is paired with. For example, someone uses ETH to buy RENA from the RENA/rETH pair, the protocol removes the ETH sent by the buyer and mints rETH into the pair, maintaining the price. RenaSwap market buys RENA from Uniswap using the extracted ETH, then distributes it to Uniswap RENA/ETH LP stakers. For ITS, when someone uses ETH to buy ITS from the ITS/rETH pair, the ETH goes directly to the ITS/ETH LPs within the ITS Rebalancer. For an explanation of how the RENA Rebalancer works, see the sub-section titled Continual Liquidity Growth and Deflationary LP.

Initial RenaSwap Pairs

The flow between the initial RenaSwap pairs is shown below.

RENA/rETH ~ Receives RENA from RENA transaction fees and from ITS/rRENA buys

~ Sends underlying ETH to market buy RENA on Uniswap, then distributes to the (ETH/RENA) Uniswap LP stakers.

RENA/rITS ~ Receives RENA from RENA txn fees

~ Adds underlying ITS to ITS/rETH

ITS/rETH ~ Receives ITS from RENA/rITS

~ Sends 50% of underlying ETH to market buy ITS on Uniswap, then pairs that ITS with ETH and locks liquidity into the ITS Rebalancer

ITS/rRENA ~ Receives ITS from ITS txn fees

~ Sends underlying RENA to RENA/rETH

RENA pairs also receive RENA on each rebalance.

Explanation

These pairs are all Buy-Only, meaning that they require receiving a constant flow of the RENA or ITS utility tokens. RenaSwap's asset flows are the magic sauce of its volume perpetuation and arbitrage opportunity generation attributes.

To use RENA as an example, the RENA/rETH and RENA/rITS pairs will receive an ongoing flow of RENA, which means the supply of RENA will increase relative to the rETH and rITS in these pairs. The effect of this change on the supply/demand ratio of either of these RENA pairs will widen the gap between RenaSwap and Uniswap's prices for these assets. This continually generates new arbitrage trading opportunities between the two protocols (and any other decentralized swapping protocols that may be implemented in the future). Additionally, this constant flow of RENA & ITS into the pairs means that each pair will have a constantly increasing amount of RENA & ITS "locked" above price floors (see "RenaSwap's Dynamic Price Floors" section below).

To take advantage of the numerous arbitrage opportunities created by this unique system, users will first need to obtain either ITS or RENA in order to be able to swap with a ITS/rRENA or RENA/rITS pair. The flow of RENA between multiple pairs with each trade results in a phenomenon that we've termed "volume aggregation." For example, if the RENA token has a high trading volume, then more RENA will flow into the RENA/rITS pair, thus increasing the RENA supply, creating more arbitrage trading because of the change in supply vs demand -- all of which can only be accessed by using ITS. Therefore, users need to obtain ITS for the utility of capturing this arbitrage, which catalyzes further chains of events in the system and demonstrates a significant part of the ITS token's overall utility within the ecosystem.

Our goal for the Rena ecosystem is to set the framework for continual growth. RenaSwap pairs are designed to scale extremely well. The liquidity within the pairs can only increase, as the flow of incoming RENA is constant and there is no way to remove the rETH, rRENA or rITS. This will result in an ever-decreasing price impact, allowing for more tokens to be "locked" above the price floors as well as allowing larger and larger buys to be made without impacting the price dramatically.

The RENA Token

Summary

RENA is a deflationary ERC-20 utility token providing sustained yield for LPs and is the cornerstone of RenaSwap's utility. It will have a maximum supply of 11,000,000 tokens and through an aggressive burning mechanism the circulating supply will decrease. All RENA transactions incur a 1% fee, which is distributed 60% to RENA/rETH and 40% to RENA/rITS (See ). In addition, the RENA token has three defining features: continual liquidity growth, consistent yield and volume, and anti-dilutive LP staking.

Roadmap

Phase 1 | Launch | Q2 2021

The launch of RENA & RenaSwap and the integration of ITS into RenaSwap

Phase 2 | Growth | Q2 - Q4 2021

In Phase Two we aim to expand our ecosystem via strategic partnerships with an emphasis on project integrations, developer expansion, marketing exposure, and community involvement. Alongside this, we have already conceptualized future assets that we plan to develop and integrate with RenaSwap.

As a specialized DeFi development team we realize that the DeFi landscape is evolving at incredible speeds, and therefore future implementations will be adaptable and flexible.

We plan to improve on RenaSwap and add further utility to ITS & RENA in the following ways:

- ITS staking to mint

- Layer 2 scaling solutions

- RENA staking

- NFTswap platform

- Rena or LPs as collateral for rStable

Below are detailed summaries describing the above concepts.

Note: these concepts are still early in their conception and could be altered, replaced or removed.

rGov

Once RenaSwap and the Rena Finance ecosystem is up and running to our standards, the ITS token will transition to a unique governance system. In order to create a fair governance system while also ensuring that those voting are long-term thinkers, we will be introducing a voting token called rGov. This token is minted once a user stakes their ITS on and is burned when a user unstakes the ITS.

Staking and unstaking each have a small fee meant to ensure that those voting in governance are long-term minded. The fee will help to prevent votes from insincere parties from being submitted. Parts of this fee will get re-distributed to stakers, with the rest being burned.

The ITS staking portal will receive rewards in the form of ITS & RENA. These incoming reward tokens are not being minted, but instead, a small fee of RENA & ITS from RenaSwap’s transactions are used to reward ITS stakers. On top of this, a portion of the 2.5% withdraw and deposit fee will also be re-distributed to those staking ITS.

This is our general plan for implementing a governance system, we have not put in place a timeframe for the release of this, but you can expect it in the following months after Rena’s final release. A forthcoming article will reveal more details on the nature of our ecosystem’s governance.

Layer 2 scaling solutions

The RENA team has already began conducting R&D on Layer 2 solutions, the current consensus is to follow Uniswap's lead and adapt to use Optimism. This would allow for us to have our liquidity remain on Uniswap while also integrating RenaSwap onto a layer 2 platform. Other future development solutions include migrating to platforms such as Binance Chain or Solana, however these would likely segregate our community and divide the liquidity across chains.

RENA staking

Single sided RENA staking that is able to yield RENA or ITS rewards from RenaSwap. The same can be done for ITS.

NFTswap platform

RenaSwap's unique swapping mechanics allow for NFT AMM pairings.

NFTswap would allow for NFT pairs to be listed on RenaSwap, allowing for the selling and buying of these NFTs with RENA, ITS or ETH. Having NFT liquidity is important as it sets a base value for each NFT, thus allowing holders to sell or buy instantly at a fair value rather than having to use an auction house.

If a an NFT were to be paired with RENA a RENA/NFT liquidity pool would be created, meaning all NFTs would be priced against the price of RENA and would further increase its trading volume. This also creates NFT arbitrage opportunities, between other NFT platforms and RenaSwap.

Rena or LPs as collateral for rStable

Creating the rStable token would allow for users to collateralize their RENA and claim 50% of its value in rStable. Ideally rStable would have a incentivized rStable/ETH Uniswap liquidity pair, essentially allowing for people to provide RENA collateral for a loan.

Governance (rGov)

In order to create a fair governance system while also ensuring that those voting are long-term thinkers, we will be introducing a voting token called rGov.

This token will be used to create proposals and vote on the Rena Finance Snapshot.

rGov Token

This token is minted once a user stakes their ITS on and is burned when a user unstakes the ITS.

Staking and unstaking will cause your rGov tokens to be locked for 72hours, this is meant to ensure that there is minimal attack vectors. The lock will also help to prevent votes from insincere parties from being submitted.

rGov Functionality

The rGOV governance token will allow holders to control the upgrade of the protocol and to make changes to rates, fees, and other mechanics to ensure the health and success of the network.

rGov also will have voting power over grants and any proposals put forward by the team / participants.