The Sovryn platform is built using the Bitcoin-powered smart contract infrastructure RSK thereby making it suitable for DeFi applications and more secure than the Ethereum-blockchain network.
On Tuesday, December 15, Sovryn – the decentralized platform for Bitcoin trading and lending – went fully functional. As a result, users can now trade Bitcoin in a non-custodial, permissionless, and censorship-resistant manner through the Sovryn application.
Built on the Bitcoin-powered smart contract platform RSK, Sovyrn said that it also plans to launch the governance system. The RSK framework offers the benefit of faster block times against the Bitcoin network’s 10 minutes. Moreover, RSK has been merge-mined with BTC getting 50% of the BTC network hash rate.
RSK provides the Sovryn platform with a secure smart contract platform suitable for decentralized finance (DeFi) applications. Sovryn claims that the RSK framework makes it even more secure than the Ethereum blockchain.
The recent launch comes Sovryn managed to successfully raise $2.1 million in the latest funding round. The funding round was led by Greenfield One along with participation from players like Monday Capital and Collider Ventures. Also, BlockVenture and Collider Labs were the first ones to join Sovryn offering initial capital and closing support. Edan Yago, one of the Sovryn community founders commented:
“Bitcoin created a decentralized monetary system. With Sovryn we are providing Bitcoin with a decentralized financial system as well. Sovryn is for those who value self-sovereignty and who want to maintain control of their keys and their private data. With Sovryn, lending, trading and leverage are permissionless and censorship resistant.”
Bitcoin Layer 2 Tech Sovryn Is Riding the DeFi Wave
2020 has been the year for the resurgence of the decentralized finance (DeFi) market. But despite Bitcoin being the most valuable crypto asset, it’s exposure to the DeFi market remains limited. Sovryn – the Bitcoin Layer 2 Technology – leverages the capabilities of RSK Bitcoin sidechain.
The platform offers native noncustodial trading and lending for the world’s largest cryptocurrency. The Sovryn platform allows holders of Bitcoin (BTC), Tether (USDT), and the Dollar on Chain (DOC) stablecoin to earn passive interest income by lending their assets. As a result, Sovryn users can also benefit from the low-cost and low-slippage swaps between BTC, USDT and DOC. The Sovryn decentralized platform facilitates these swaps via the automated market-makers.
It also allows users to trade long and short with up to five times the leverage. For the last three months before launch, the Sovryn community of developers has been testing the platform functionality.
As said earlier, Sovryn also plans to launch the decentralized governance contracts by later this month. The Sovryn governance model has been forked from Compound governance.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
