Chaosnet FAQ

Chaosnet FAQ

Why Chaosnet? Acting as the proving grounds for RenVM Mainnet, Chaosnet is an unaudited and unrefined release of RenVM deployed to the Ethereum, Bitcoin, Bitcoin Cash, and ZCash Mainnet that interoperates real cross-chain assets. The purpose of Chaosnet is to put RenVM to the test with real economic incentives. It serves as a final stage for the team, developers, and community where we will purposefully put the network under stress, and incentivize its corruption. Further, although most major blockchains have a 'testnet' environment (a replication of the main blockchain) there are subtle differences. By deploying RenVM to Mainnet, it allows us to catch any bugs that might not show on Testnet.

Ensuring RenVM is battle-tested under real-world conditions is paramount, and Chaosnet is its dress rehearsal. Where can I find more information on RenVM, Darknodes, and Developer Tools (SDK)? -RenVM -Darknodes -Developer Tools​‌

What are the chances I'll actually lose money? To be frank, if you proceed, expect to lose your money and know you are doing so at your own risk. If you are contemplating on not participating because of this, you should not participate.

Can developers build dApps with RenVM Chaosnet, is there an SDK, etc..? The SDK is currently pointed towards Testnet at the moment, but it does serve as an initial tool to experiment with, so check the SDK here. If you are interested in integrating RenVM, please fill out this form and we will let you know when the RenVM Developer Center is open, where we will provide 1 on 1 support for anyone looking to integrate RenVM! ChaosDEX is based on the xy=k model. So how does this actually work? ChaosDEX is based on Uniswap's model (i.e. xy=k). If you would like to know more about how this type of exchange works, and the implications of such for those who utilize it, we encourage you to check out this article. ​

‌How does being a Liquidity Provider (LP) work? As with Uniswap, individuals can provide liquidity in any of the above digital assets and earn fees for doing so. The fees one can earn is currently set at 10 BPS or .01 % per trade. There are plenty of great articles on the risks and rewards for providing liquidity in such a system, so we do encourage you to some research prior to proceeding. We will assume you understand the risks, so reading the below information is incumbent on those participating! A few articles can be found here: 1) Uniswap: A Good Deal for Liquidity Providers? 2) Understanding Uniswap Returns​

Does Chaosnet use Mainnet REN? Yes and REN is an ERC-20 based work token. Please review this resource for more on its role in the ecosystem. ‌What blockchains does RenVM currently support? Bitcoin (BTC) Bitcoin Cash (BCH) ZCash (ZEC) Ethereum (ETH) & (ERC-20)

‌How does 'GAS' work in ChaosDEX and other cross-chain environments? For Chaosnet, individuals will have to pay ETH GAS to submit any cross-chain transaction (which is annoying, we know). Paying ETH GAS for sending BTC, etc. to a dApp is bad UX, so we will be building examples for Devs that allow 3rd parties to cover the GAS needed for these transaction making the end-user experience far superior (for a small fee the trader will pay during their trade).

Currently, when you send BTC, BCH, or ZEC to ChaosDEX a small fee will be removed from that transaction and converted into ETH to cover GAS costs.

Will RenVM Chaosnet, require a minimum number of BTC, BCH, ZEC, ETH confirmations? On Chaosnet, it is set to two (2) confirmations due to real assets being used, which takes around 20 minutes. This is a balance we struck for safety and speed..but it's slow/annoying.. and we are aware, hence why we have the below plan for Mainnet. On Testnet, this number was set to zero (0) because it makes testing easier and faster. On Mainnet, there will be four (4) options (more on this in the question below): 1. Systems for people to take on the “confirmation risk” and provide a float to speed things up significantly for a small fee deducted from the asset received by the trader. 2. Devs can set it up so that people can deposit ahead-of-time. 3. Layer 2 solutions, where we'll be exploring Lightning Network, and similar concepts. 4. Wait the full 6 confirmations that RenVM will require (on Mainnet).

‌How will 'confirmations' work on cross-chain apps in the future? The number and speed of confirmations inherently depends on the original chain and must be set at the time the chain is admitted into the protocol. For Bitcoin, this will be 6 confirmations (for Mainnet)(Chaosnet, it will be 2). This obviously takes a long time and, while it’s not so bad for some use cases (lending, collateralization, etc), it’s not the best for dApps/DEXs and general UX.

So, we have the concept of Universal Interoperability. This allows a third party to provide two things (in exchange for a fee nominated by users): (a) Provide gas so you don’t need to manage lots of different tokens, just the ones you’re actually using for the dApp. (b) Provide speed by taking on the confirmation risk. The third-party sees you have (let’s say) 1 confirmation and is confident you’re not a miner about to attack Bitcoin. They come in and provide the shifted BTC immediately to complete whatever action you were taking, and when the real underlying shift finishes the 3rd party get their funds back. This can be done to greatly ease the user experience: gas and speed. Of course, we have designed it to remain trustless. What happens when prices shift while waiting for confirmation? If the price shifts too much, then the funds are returned to your specified refund address. This will take some more time (more block confirmations), and will exclude the fees required for the transfers made throughout the process (similar to how a failed Ethereum transaction still costs gas). -When adding liquidity, its 5%. -When trading, its 5%

When this happens or if a trade doesn't go through, how do these refunds work? RenVM takes hold of the funds sent to it and returns you the authorizing signature for submission to Ethereum, as normal. However, instead of triggering a trade the Ethereum contract will see the price has shifted away from what you specified and will initiate a return of the funds to your nominated address. (Recall, the application asks for a refund address when you interact with it.)

*Note: this is just how ChaosDEX works and is an example of the types of “arbitrary data and logic” that can be attached to interoperable transactions made using RenVM. Other applications are free to (and likely to) provide different mechanisms.

Will ChaosDEX continue into Mainnet as well? Chaosnet & ChaosDEX is used for testing and will not be run on Mainnet. Our core product is the RenVM SDK which is what third-parties will utilize.

What is the recommended amount of ETH needed for a Chaosnet Darknode? .1 ETH

How long does it take to fully register or deregister my Darknode during Chaosnet? Given the new epoch cycle for Chaosnet is 7 days (1 week), it will take approximately 8 days to register and 3 weeks to deregister one's Darknode. For more information on Epoch Cycle changes for RenVM Mainnet please review this article.

‌Is running a Darknode on Chaosnet useful for the team? Yes, by running a Chaosnet Darknode you are inherently helping us test and refine RenVM. One of the core purposes of Chaosnet is to the real world incentives of RenVM. Running (and continuing to run) a Chaosnet Darknode says something about the incentives at play: they’re enough to get people running Darknodes. And this helps us! In fact, by not running a Chaosnet Darknode you’re also inherently helping us test. It’s telling us there’s something not quite right with the incentives.

What's the incentive for someone to collude and attack the network during Chaosnet? The ability to steal real BTC/ZEC/BCH, the want to help us test the network, the want to betray their fellow colluders and take their REN bonds, and of course, some people just want to watch the world burn.

All of this deregistering and re-registering for Mainnet is a bit annoying, is it necessary? We do certainly understand the point as it's been discussed at length but registration for the RenVM Mainnet is a necessary component (applying automatic updates for current Darknodes to run RenVM is not technically feasible). This announcement is very much an administrative piece to ensure our community has plenty of time and notice to proceed at the speed they prefer. Chasonet is designed for testing and those willing to actively experiment, but certainly not mandatory and there is no pressure on the general community to be active during this period. In summary for those who prefer to be less active, should de-register their current Darknode(s) and wait patiently for activation at the release of Mainnet SubZero, no other action is needed. How can I report a bug I found when using Chaosnet in some capacity? Please fill out this form (https://renprotocol.typeform.com/to/YdmFyB) or email us at [e-mail]