Alameda's bankruptcy leads to Ren's DeFi protocol running out of funds by the fourth quarter, prompting a new fundraising round and the closure of the old version in 30 days.

The renowned DeFi protocol Ren Protocol is best known for its cross-chain asset renBTC, which brings Bitcoin into other blockchain ecosystems. Ren Protocol has been funded by Alameda since its acquisition in early 2021. With the bankruptcy of the FTX Group, Ren Protocol announced that it will run out of funds in Q4 and is seeking funding for its new version of the product.

Ren Protocol Statement: Only Enough Funds Until Q4, Will Launch 2.0

The official Ren Protocol announced that due to Alameda no longer being able to provide development funding, they will only be able to sustain operations until the fourth quarter of this year.

Ren Protocol stated that the protocol aims to operate in an open-source and community-driven version, with plans to launch Ren Protocol 2.0, aiming to become the most decentralized cross-chain platform. They will also be consulting with investors and discussing decisions with the community moving forward.

Next Steps: Halting Ren 1.0 Temporarily

Ren Protocol mentioned that the initial plan was to gradually roll out 2.0, but as 1.0 was led by Alameda, in light of current events, they have decided to conclude it early and move into 2.0. Therefore, they will prohibit Ren 1.0 from continuing to mint new cross-chain assets and will shut it down after 30 days.

The official recommendation is for users to transfer cross-chain assets back to their original chains, such as renBTC, as soon as possible.

The transition will occur from the renproject.io domain owned by Alameda. All current sites will be gradually hosted on IPFS, with control gradually transferred to RenDAO.