For years, Bitcoin has been forced to sit on the sidelines and watch the trends in the crypto industry, attracting many new users and developers to the blockchain sector that offers various services to development platforms. For many Bitcoin fans, this likely seems like one missed opportunity after another, because the way Bitcoin is designed and engineered prevents it from serving as a development platform and offers the same features.
However, that may be about to change now, with the arrival of Sovryn – the first and only original Bitcoin DeFi ecosystem to exist on Bitcoin and Bitcoin.
What is Sovryn All About?
Simply put – Sovryn is a DeFi platform for Bitcoin. It is a fully decentralized and true financial protocol that resides within the Bitcoin ecosystem, providing users with the ability to trade, lend and borrow money, and more, with plans to offer oracles, derivatives, NFTs, interest-free loans, Bitcoin backed stablecoins, and just about anything else. It can be expected in the DeFi ecosystem.
The project started working on the Sovryn DeFi protocol back in 2020, and at that time, it started with only 5 developers. By the time it was launched – April 2021 – that number had grown to 60 individual contributors, and after a recent hackathon, they had attracted 1,400 developers who began submitting projects to the Sovryn ecosystem. To date, nearly 60 individual projects have been submitted.
The company has also been able to achieve some impressive milestones. For example, it was able to raise $23 million from institutional investors, including Greenfield One, Monday Capital, Pomp, Collider Ventures, and others. It facilitated $568 million in transactions, and TVL rose to $77 million in record time.
Benefits of using the Sovryn بروتوكول protocol
Sovryn is a protocol that aims to solve a number of problems that merchants have been facing so far, despite all the work that other projects have put into solving them. This includes things like high transaction fees, the need to give away personal information to use different projects, security issues, inefficient stable liquidity, blockchain incompatibility across the entire DeFi ecosystem, and more.
Sovryn aims to solve these problems one by one. For example, you want to reduce the gas fee to 1/100 of the fee for Ethereum. It has already solved the problem of personal details requirements by becoming 100% without permission. The bug bounty event that brought many new developers to it also helped increase security.
It has also created xUSD pools for all the stablecoins that will help solve the inefficient liquidity that they have to deal with. Another common problem that has been resolved is the incompatibility of the blockchain with the DeFi sector, which was resolved through its compatibility with the EVM. As such, it can be used on all blockchain platforms, opening up a whole world of possibilities for the project.
Sovryn doesn’t plan to stop there either. It will also create technical bridges to move assets in and out of the Rootstock network, and even create a decentralized bridge linking Bitcoin to smart contracts. Its app is integrated with fiat on-ramp, provided by Transak, where users can buy BTC with fiat directly.
It also aims to bring Origins Launchpad – a launchpad for new and early projects on Rootstock. Token allocations from these projects can be made available to Sovryn buyers, as well as the wider community.
In other words, there are many issues that the protocol has already figured out how to solve, as well as many unique solutions coming to the community for the community to look forward to. But, in the end, this will be something that will finally allow Bitcoin to join the DeFi game, thus increasing its functionality and potential, giving it new use cases, expanding its purpose, and making it a capable competitor in the DeFi sector.
Andrew is a writer who does most of his work on cryptocurrency related topics. While he is primarily interested in bitcoin, he also follows major cryptocurrencies and innovative ideas that new crypto and blockchain projects are bringing to the table.