VarenX abstracts the complexity of swapping assets across blockchains by utilizing Ethereum’s smart contracts for swapping ERC-20 tokens and combining that with the RenBridge decentralized application (dApp). RenBridge dApp allows individuals to mint native currencies (such as BTC, DOGE, BCH, DGB, FIL, LUNA and ZEC) on Ethereum as an ERC20 token (renBTC, renDOGE, …). It also allows users to convert these ERC20 tokens back into their native counterparts.
For example, to swap from LUNA to BTC, VarenX will execute the following steps:
Deposit LUNA > mint renLUNA > swap renLUNA for ETH > swap ETH for renBTC > burn renBTC > send BTC