Mhairi
March 2, 2022, 12:42pm
1
This UMIP will add renBTC as an approved collateral currency. This will involve adding it to the whitelist and adding a flat final fee to charge per-request.
# Headers
| UMIP-11 | |
| ---------- | ----------------------------------- |
| UMIP Title | Add renBTC as a collateral currency |
| Authors | Adrian Li (adrian@umaproject.org) |
| Status | Approved |
| Created | August 26, 2020 |
## Summary
This UMIP will add renBTC as an approved collateral currency. This will involve adding it to the whitelist and adding a flat final fee to charge per-request. The proposed final fee is 0.018 renBTC per request.
## Motivation
BTC is the world’s largest and most popular cryptocurrency by market capitalization as well as traded volume. Many holders of BTC like to borrow against their BTC to get leverage on their BTC. At the time of writing, over 7,000 WBTC are locked in MakerDAO in this fashion.
To allow synthetic tokens created with the EMP to take advantage of this liquidity and desire for leverage, an ERC20-compliant representation of BTC is required. renBTC is an ERC20 token backed 1:1 with BTC using the decentralized Ren Protocol.
renBTC as collateral is expected to have a variety of deployments. The timing for adding it now, and the immediate application, is for use with USDBTC, which will enable the creation of yUSD, a yielding dollar token. This price identifier is described in [UMIP-7](./umip-7.md).
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