Uniswap V2 (Ethereum)
Current DeFi protocols face a variety of obstacles to gaining participation, generating sustainable yield, and maintaining overall longevity. RenaSwap provides effective solutions to these problems and lays the foundation for a new type of DeFi interconnectivity built on Volume Aggregation. Below we list the challenges typically faced by DeFi platforms today and how Rena as been engineered to solve them.
Problem: Inflationary token economic models can lead to devaluation of the token by flooding the supply with new token emissions. Solution: The RENA and ITS utility tokens avoid the downside of inflationary token economics and the dilution of token holders' share by using a deflationary token model. Here's how RenaSwap performs token burning:
ITS and RENA Rebalancer smart contracts are refilled with ETH by smart asset routing on every RenaSwap transaction.
Using a percentage of the ETH held in a Rebalancer, ITS or RENA tokens are market bought & burned each time a rebalance occurs.
Since the amount of volume on RenaSwap determines how much ETH flows into the Rebalancers, the degree of buy & burn power that the Rebalancers have is a direct result of the total trading volume on RenaSwap.
The effect of the deflationary model is moderated by these three factors: 1. price of the token, 2. the liquidity of the token on Uniswap, 3. the buying power of the Rebalancer.
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.
