New “Yield Dollar” From UMA Protocol Causes Concerns Over BTC In DeFi
With this, UMA allows its users to lock in renBTC within UMA, which stands as an ERC-20 coin that represents Bitcoin within the Ethereum Network. This renBTC can, in turn, be used as collateral in order to mint Uma’s Yield Dollar token, the uUSD.
Barring the obvious of creating a permissionless leveraged position through the use of renBTC, users of UMA are also capable of accessing yield farming, as well. As per the announcement of the company, Ren and Risk Labs will now start offering farming rewards to users that contribute their uUSD, which was minted from USDC and renBTC, to a Balancer pool.