Ren Protocol warns of risk that $15 million worth of assets could be lost

The Ren Protocol developers warned that the protocol could shut down in the near term, potentially locking the remaining user assets worth $15 million.

1) Reminder that Ren assets need to be bridged back to the respective native chains ASAP ⚠️

The Ren 1.0 network is likely to imminently shut down, and any remaining assets are at risk of being lost. https://t.co/OLSMrjj6vb

— Ren (@renprotocol) December 17, 2022

The team explained that they cannot forecast exact timelines, as this is tied to in the process of bankruptcy Alameda Research. The firm acquired the project in February 2021 and controls part of the infrastructure.

“We don’t know for sure. It depends on when the infrastructure we do not control will go offline. It could be in a few days, or a week or two. But I’m trying to find out,” The Block quotes developer Maximilian Roshko.

The protocol allows users to mint wrapped tokens to use assets on other blockchains. The most popular token on the network is renBTC for Ethereum.

If the protocol ceases operation, Bitcoin tokens minted would be inaccessible. According to Roshko, theoretically a restart of the network in the future could allow funds to be recovered.

However, at present the project team strongly urges users to move their assets to other blockchains as soon as possible.

Some commentators noted that the developers might have found a way to salvage the remaining funds. They say users entrusted the protocol team with asset security and shouldn’t have to monitor all updates on Twitter.

You have over $15m of other people’s bitcoin still…you really plan to rug them to zero because they are not following crypto Twitter?

— Cryptoyieldinfo (@Cryptoyieldinfo) December 18, 2022

In December, the DeFi platform MakerDAO closed the ability to borrow DAI stablecoin collateralized by renBTC.

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