Sovryn is (was?) Bitcoin only:
- Users can trade —or up to 5x margin trade— Bitcoin against USD stablecoins.
- Loans are overcollateralized, and Bitcoin is the only asset accepted.
- Fees are paid in Bitcoin.
Recent bridges to ETH and BNB have introduced new options.
Sovryn is built on the RSK sidechain
, a smart contract platform built on top of the Bitcoin blockchain that works as layer 2.
Besides flexibility, it provides faster and cheaper transactions.
Other DeFi platforms use wrapped forms of Bitcoin like WBTC
or renBTC, which add friction and, in the case of WBTC, risk since they are custodial and the users get an IOU on Bitcoin, not real Bitcoin.
Also, being ERC20 tokens, the fees are high, and the network may clog. RSK is a better option.
SOV is the platform Bitocracy (their term for governance) token. Stakers get the profit generated by the protocol and vote on proposals.
Launched in 2021, SOV has a fixed supply and an emission period of 7 years. Tokens are allocated to different developer or founder’s funds.