Did someone say DeFi on Bitcoin using Sovryn!???
When it comes to Decentralised Finance, the Bitcoin network has been forced to sit on the sidelines as the ICO and DeFi boom. Even though Bitcoin is the most valuable cryptocurrency by market capitalisation, the Bitcoin blockchain has been left out of most of the DeFi advancements due to technological restrictions.
This came to a halt with the development of Bitcoin SegWit. This development allowed the creation of Bitcoin sidechains, a significant step towards including the Bitcoin ecosystem into DeFi. These sidechains are connected to the Bitcoin blockchain and provide additional smart-contract capabilities comparable to Ethereum.
Sovryn is one of the unique platforms benefiting from this development. Sovryn is a provider of decentralised finance (DeFi). Rootstock Smart Contract is a Bitcoin sidechain that runs the Sovryn protocol (RSK). Sovryn is a permissionless, non-custodial smart contract-based Bitcoin lending, borrowing, and margin trading system. The Sovryn protocol is neither represented nor controlled by a single firm, organisation, or individual.
Benefits of Sovryn to DeFi
The fact that Bitcoin, crypto’s major asset, has been massively left behind on the innovations surrounding DeFi protocols has left a huge gap in the Industry. Sovryn solves these problems by enabling people to use Bitcoin in their decentralised applications;
- Without having to let go of their Bitcoin
- Without having to go through a Centralised entity
- Without risking their financial privacy and authority.
The RSK Sidechain
The RSK Sidechain is a layer two smart contract protocol. The RSK sidechain used by Sovryn is linked to Bitcoin through Merged-mining. Merged mining is a method that allows Bitcoin miners to offer security for RSK while also mining Bitcoin and earning the relevant block rewards. Securing a sidechain is a byproduct of mining Bitcoin, the magic of merged mining.
As a result, miners are not required to devote more processing effort to protect the RSK sidechain. RSK is a non-custodial protocol. It is not an IOU (like WBTC) and continues to fight censorship. tBTC is similarly non-custodial.
However, the conversion is quite expensive and will become even more expensive in their new model (higher collateralisation ratios). In general, RSK fees are substantially lower than Ethereum fees.
Sovryn has created its native SOV coin to administer the system. By staking their SOV tokens on the network, SOV token holders can participate in Sovryn’s bitocracy. This gives them voting rights and allows them to share Sovryn’s benefits and risks. Because Sovryn wants to rely mainly on Bitcoin, the SOV token is not required to use the platform’s services.
DeFi Services Offered by Sovryn
Sovryn provides a variety of financial services. These services can be used in a genuinely decentralised manner once the user has joined the Sovryn ecosystem, and the user will never have to give up ownership of their private keys. These services include the following:
- BTC to RBTC: With Sovryn, users can obtain RBTC by transferring BTC to a randomly generated deposit address and vice versa.
- Fiat to RBTC: Sovryn offers a Fiat on-ramp through which users can buy RBTC using fiat. KYC is necessary to utilise the service.
- Swap: Users can swap and trade coins and tokens that run on RSK.
- Margin Trading: Users can trade with a 5x leverage on the Sovryn platform.
- Lend: Users may earn money by lending out their bitcoins on the platform
- Borrow: Users can borrow cryptocurrency by putting down a deposit.
- Portfolio Management
- Yield Farming: Users can earn a profit by lending money to a pool of people.
- Staking: To participate in Bitocracy and receive protocol fees and voting rights, users can stake SOV tokens.
- Users can also invest in upcoming projects with the Launchpad.
Core Features of Sovryn
Here are the key features of Sovryn as a DeFi platform built on Bitcoin.
Open Source: As it is in every other DeFi platform, Sovryn is focused on the interoperability of the platform and the development of open-source codes for developers globally.
Merge Mined: The Bitcoin Proof of Work decentralised consensus mechanism secures the Sovryn smart contracts.
Continuous Decentralisation: Sovryn continuously adds secure oracles to the platform for higher decentralisation
Safe and Secure: Sovryn goes through constant security audits from several auditors and maintains a bug bounty to provide and safe and secure platform for users.
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