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DeFi for Bitcoin: Sovryn (SOV) in 5 🖐

DeFi for Bitcoin: Sovryn (SOV) in 5 🖐
By Fernando Gutierrez • Issue #71 • View online

What is Sovryn (SOV)? 💥
Sovryn is a non-custodial and permissionless platform to trade, lend, borrow, or margin trade Bitcoin.
Or with some more jargon: Sovryn is a DeFi platform for Bitcoin built on the RSK Bitcoin sidechain.
The total value currently locked in the platform is around $650 mn.
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.
A few links
Last few words
Of course, this is not financial advice yada yada yada.
Custodial or not, losses hurt. Do your research, make your decisions, and own your outcomes.
I’m catching up with crypto concepts and projects daily for 50 days straight. Please reply to this email if there is something that you would like me to cover.
Or just to say hi, that would be nice 😀
Cheers!
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Fernando Gutierrez

I'm catching up with crypto projects and concepts in a few paragraphs for at least 50 days straight.

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