According to an Avalanche blog post from 3 June, adding support for the RenVM Bridge will enable anyone to mint and burn assets on Avalanche. The integration of RenVM will enable users to bring Bitcoin (renBTC), Bitcoin Cash (renBCH), DigiByte (renDGB), Dogecoin (renDOGE), Filecoin (renFIL), Terra (renLUNA), and ZCash (renZEC) to Avalance in the form of wrapped Ren tokens.
RenVM is a trustless bride that acts as a custodian of digital assets as they move between blockchains. When users deposit tokens to RenVM, the protocol automatically mints a 1:1 ARC-20 representation of the token on Avalanche. An ARC-20 token is an ERC-20 token that wraps an underlying Avalanche Native Token.
Jay Kurahashi-Sofue, the VP of Marketing at Ava Labs, said interoperability is the key in compounding the growth of decentralized finance. With more and more smart contract-enabled blockchains launching each day, providing users with a seamless bridging experience will enable them to decide which platform works best for them.
As part of the partnership, both Avalanche and RenVM will be pursuing the addition of Ren-based assets on various AMMs and lending platforms such as Pangolin and Sushiswap. The company revealed that more DEXs and lending protocols are set to be added to Avalanche over the summer.
“With the addition of Avalanche to RenVM all stakeholders involved will benefit by providing more utility to the Avalanche ecosystem, and even more velocity through RenVM,” said Michael Burgess, the COO at Ren.