The RENA DAO has officially listed ~$1.4m in wsOHM/RENA liquidity on Uniswap.
Wrapped sOHM is a token that represents both the price of OHM and the yield of sOHM. Therefore by providing liquidity to wsOHM/RENA, the RENA token is now partially exposed to both the yields of sOHM and the price movements of OHM.
The price of one wsOHM token = (one OHM) x (the current OHM index). This means that each time sOHM rebases positively the price of wsOHM will appreciate. Therefore each rebase or price movement should allow for arbitrage across the wsOHM/RENA & ETH/RENA liquidity pools.
e.g. if the price of wsOHM goes up, then the value of RENA in the wsOHM/RENA pair also goes up, allowing for a user/bot to arbitrage between wsOHM/RENA and ETH/RENA to bring the spreads closer, and vice versa if the price goes down.
Previously Rena’s treasury consisted purely of RENA/ETH LPs. Therefore making the price of RENA closely dependent on the price of ETH. Now the RENA token is now roughly 18% backed by wsOMH/RENA LPs. To accompany this the RENA team has begun development on a custom r(3,3) concept that enables RENA to further accumulate and utilize sOHM.
Etherscan for wsOHM/RENA LPs
Wrapping and unwrapping of sOHM & wsOHM