Mhairi
March 2, 2022, 1:14pm
1
This UMIP should add renDOGE to the supported collateral currencies into the global whitelist contract, allowing for the usage of renDOGE as collateral currency.
## Headers
| UMIP-42 | |
|------------|------------------------------------------------------------------------------------------------------------------------------------------|
| UMIP Title | Add renDOGE as a collateral currency |
| Authors | Logan Fulcher (logan@opendao.io) |
| Status | Approved |
| Created | January 20,2021 |
| Link to Discourse | https://discourse.uma.xyz/t/adding-rendoge-as-collateral-umip/24/30 |
## Summary (2-5 sentences)
This UMIP should add renDOGE to the supported collateral currencies into the global whitelist contract, allowing for the usage of renDOGE as collateral currency.
## Motivation
Dogecoin is a derivative of Luckycoin which forked from Litecoin and uses a Scrypt algorithm. It has been a presence in the crypto currency community since 2013, and despite its reputation as "only a meme coin," dogecoin sees ongoing mining and significant trade volume, particularly among the Litecoin mining community and its highly dedicated meme fan base. DOGE has a current market capitalization of $1.17 billion & 24 hour trading volume of approximately $256 million. The coin has maintained a top 100 position in market cap for nearly 8 years.
renDOGE is an ERC20 variant of DOGE and is the catalyst for the process of incorporating DOGE into decentralized finance. renDOGE is similar to renBTC, in that the DOGE is custodied in a permissionless manner by Ren. Thus, it is a straightforward process to move between DOGE and renDOGE.
The motivation for adding renDOGE as a supported collateral in the global whitelist contract is for providing DOGE holders an opportunity to go long on DOGE - bringing it onto the Ethereum blockchain makes this possible. The process utilizes RenVM via OpenDAO to convert DOGE to renDOGE, then mint a stablecoin backed by DOGE ($DOGEO) as collateral, which is built on UMA.
In process, renDOGE holders would supply tokens to the OpenDAO Platform as a collateral asset to mint DOGEO via underlying UMA contracts; the newly minted DOGEO, being a synthetic asset that traces the value of USD, could then be used elsewhere or converted into another stablecoin for a variety of purposes. Once users of the DOGEO token want their locked renDOGE collateral back, they would bring DOGEO back to the OpenDAO platform, settle any fees/interest, and then reclaim their renDOGE tokens which can be converted back into the original DOGE. A DOGEO/USDC pool will be created via Uniswap for easy access into other markets using DOGEO. It is also possible that DOGEO may find itself available for use in other future applications as well.
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