rGov & ITS

Rena is modeled as a decentralized autonomous organization (DAO). The Rena community guides the protocol's growth and evolution through blockchain voting.

rGov

Users can participate in the Rena DAO’s governance by staking their Iteration Syndicate (ITS) tokens and minting rGov tokens. With rGov, users can issue and vote on proposals on snapshot to steer the future of the Rena protocol. rGov tokens are non-transferable and have a 72-hour cool-down period before they can be redeemed back for the original ITS. rGov is minted at a 1:100 ratio (1 ITS is equivalent to 100 rGov) and redeemed conversely.

Rena Snapshot: https://snapshot.org/#/rgov.eth

Proposals are issued on Snapshot by users holding a minimum level of influence. All participants can vote on each proposal submitted with no minimum.

ITS

The Iteration Syndicate token (ITS) was introduced as the governance token for the Rena ecosystem.

ITS has a 1% transaction fee which feeds its legacy Rebalancer contract.

ITS's Rebalancer is a semi-automated function that creates arbitrage opportunities by "rebalancing" the ITS/ETH liquidity. This is done by temporarily removing a portion of liquidity from the Uniswap ITS/ETH pair, splitting it, and then using the ETH portion to swap for ITS, which is then entirely burned. Since ITS's inception, the Rebalancer has repeatedly been called, reducing the total supply of ITS over time and creating arbitrage opportunities for DEX participants.

While the ITS Rebalancer still exists and serves its original function, the key utility of the ITS token is that it can be staked to mint the rGov token, used to govern the RENA ecosystem.