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Sovryn is the DeFi Operating System for Bitcoin, on Bitcoin

DeFi

coincodex.com 07 October 2021 09:05, UTC
  
Reading time: ~3 m

Ever since the DeFi sector exploded in 2020, every blockchain that can operate as a development platform started launching DeFi protocols in hopes of becoming the leader in the space. Of course, that included the likes of Ethereum, where DeFi originally emerged, as well as every competitor that the project has, such as TRON, EOS, Solana, and as of few days ago — even Cardano, which just launched smart contracts on its mainnet.

However, when it comes to Bitcoin, the project was never able to enter DeFi on its own blockchain, as it simply wasn’t meant to be a development platform, and the best BTC could do was launch a wrapped version on some of the other projects’ networks and access DeFi from there.

Until now, that is, when the launch of Sovryn changed that forever, bringing the first DeFi operating system for Bitcoin on Bitcoin.

What is Sovryn?

The Sovryn Protocol is the only truly decentralized financial protocol that exists on Bitcoin to date. It allows users to trade, lend and borrow money permissionlessly, without any central authority. It doesn’t require users’ personal data, and users remain in possession of their private keys at all times.

The project actually started in 2020, with only five developers working on it. By April 2021, they managed to launch the protocol, which in the meantime grew enough to now have over 60 contributors who are actively working on it.

The project has already hit a number of milestones, such as raising up to $23 million from various investors, including Pomp, Monday Capital, Collider Ventures, Greenfield One, and others. It also facilitated $568 million in transactions, $77 million TVL, and $551 million AUM.

Apart from the mentioned activities, users can also engage in margin trading, swaps, adding liquidity, and alike. So far, the project has reported having over 31,000 active users, and its recent hackathon brought in even more developers, whose number now sits at 1,400. The sudden rise in awareness of the project and its popularity led to 59 projects being submitted to the Sovryn ecosystem.

What are the Project’s Features?

In the long run, Sovryn aims to start providing the core functions of a full DeFi ecosystem but to do it natively on Bitcoin. The protocol itself is governed by a cohort of many diverse stakeholders, which makes it fully decentralized. No single entity has the power to single handedly decide the direction of the protocol, or anything else that will happen to it, for that matter.

All decision-making is done by those who have staked their tokens in the Sovryn Bitocracy through simple, yet effective voting, that will result in approving or disapproving changes and additions to the protocol.

Sovryn also has technical bridges that allow it to transfer assets to and from the Rootstock network. In addition to that, it also has a decentralized bridge that connects BTC to the world of smart contracts.

Next, the project has its own launchpad called Origins, which is still brand new. In addition, the app is integrated with a fiat on-ramp that was provided by Transak, where users get to buy BTC with fiat directly. As mentioned, users can make leveraged trades with their assets.

A lot more is expected to come in the following months and years, including entire oracles, derivatives, NFTs, Bitcoin-backed stablecoins, loans, and more. 

So, in the end, Sovryn is a revolutionary project that will finally expose Bitcoin users to the same options and abilities to earn that Ethereum users have been enjoying for almost two years now. And, since it is the only project of its kind, Sovryn is essentially unchallenged in Bitcoin’s ecosystem.


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