New decentralized lending and trading platform launches with a focus on the top cryptocurrency, Bitcoin (BTC), rather than the conventional Ethereum-based applications.
Sovryn, a decentralized platform built and operating on Bitcoin’s RSK sidechain, announced the launch of its public chain this Tuesday, aiming to bring a full Bitcoin suite to the DeFi world. Users on the platform can now access a suite of DeFi tools, including lending, borrowing, and trading using Bitcoin.
The platform incorporates a decentralized exchange and a derivatives platform, where users can place future bets on assets (either long or short) with up to 5X leverage. In addition to borrowing and lending services on the platform, users can also stake (provide liquidity) on Bitcoin (BTC), Tether stablecoin (USDT), and Dollar on Chain (DOC) tokens and earn interest rewards by lending out the assets.
RSK is a Bitcoin sidechain type that offloads some of the transactions from the layer 1 chain to another public network. As a sidechain, RSK gives Bitcoin similar smart contract capabilities to Ethereum-based applications allowing new features to be integrated using Bitcoin.
In a statement to the press Edan Yago, Sovryn project lead, praised RSK as a “natural fit” for his project, allowing the development of a censorship-resistant digital currency. He further stated,
“Now, with the addition of a smart contract layer, deploying on RSK has meant we can provide the same or better functionality than centralized services, but in a decentralized way.”
The statement from Sovryn further confirmed a planned launch of its decentralized governance protocol later this month, similar to a lending protocol, Compound token launch in May. The governance smart contracts will be forked from Compound, with the early investors and users of Sovryn having the exclusive sale rights at the launch of the Sovryn governance tokens, which are expected to launch in Q1 2021.
To participate in voting on the platform, users must stake their tokens, where the longer you stake your tokens, the higher your voting power will be.
Sovryn completed a symbolic $2.1 million funding round led by Greenfield One and joined by other investors, including Collider Ventures, Monday Capital, and BlockVentures, who also provided development support. The funding value is a representation of the 21 million BTC coins that will be mined.