28 January 2021: Sovryn, the Bitcoin-based decentralized finance (DeFi) protocol, announces the success of its Genesis community-only reserve sale which allowed participants to reserve their right to purchase SOV token, which will go on sale in early February 2021. The event generated the equivalent of $2.5 million in only 18 minutes.
The reservation presale was oversubscribed by a factor of x2, with 800 community members reserving between 0.03 and 2 BTC-worth of SOV. To take part, participants had to have been active users of Sovryn before 8 January, when the Genesis reservation event was announced, and the allocation for members depended on the duration and depth of their engagement with the Sovryn protocol. This was to ensure fewer speculators and a prioritisation of those who wish to support the Sovryn project over the long term. Unlike in other token sales or ICOs, users who participated in the Sovryn reservation sale committed to 10 months of token lock up, as part of their long-term commitment to the project.
In 2020, the combined locked-in value of DeFi markets grew by 982%, but crypto’s major asset, Bitcoin, has been largely left out of these first generation DeFi protocols, forcing them to use a centralised, wrapped token. There has hitherto been no way for Bitcoin investors to access financial services, without handing over their Bitcoin assets to centralized intermediaries.
Sovryn solves this challenge by creating a Bitcoin-native financial operating system that allows people to utilize their Bitcoin in decentralised applications, without having to give up their assets, trade via a centralized entity, or forfeit their financial privacy and sovereignty. The Sovryn protocol provides an infrastructure using layer-2 technologies, where Bitcoin is the reserve asset and Bitcoin-backed stablecoins and sidechain technologies provide low fees and secure scalability. Sovryn provides the financial operating system that bridges blockchains, expands the level of decentralisation, and keeps Bitcoin as the sovereign currency, with users controlling their keys, even when used in financial applications.
Sovryn Co-Founder Edan Yago commented: “The success of the Genesis presale reservation event has been extremely encouraging, as has the feedback we have received from the community members, and it bodes well for the upcoming Origin presale. The vision of Sovryn is to create a protocol and a trading community which is truly decentralized; the success of this reservation sale event is a significant milestone on our journey to achieving that.”
What is missing from DeFi?
Crypto’s major asset, Bitcoin, has been largely left out of these first generation DeFi protocols. Why is that?
- There is no defi for Bitcoin
- Many Bitcoiners do not want to use the Ethereum network or to have to pay fees in ETH.
- Along with DeFi’s fast growing popularity came rapidly rising gas fees for transactions, limiting the number of users able to participate. As a result, some of these DeFi protocols became less decentralised and more suited to bigger players.
Sovryn solves these challenges by creating a Bitcoin-native financial operating system that allows people to utilize their Bitcoin in decentralised applications:
- Without having to part ways with it.
- Without having to touch a centralized entity.
- Without giving up financial privacy and sovereignty.
Bridging Ethereum and beyond: The Sovryn protocol provides an infrastructure using layer-2 technologies for the next generation of DeFi. In this new era:
- Bitcoin is the reserve asset.
- Bitcoin-backed stablecoins and sidechain technologies provide low fees and secure scalability.
- Sovryn provides the financial operating system that bridges blockchains, expands the level of decentralisation, and keeps Bitcoin the sovereign money that it is – even when it’s put to use in financial applications.
- Sovryn brings DeFi to to Bitcoin and Bitcoin to DeFi
Learn about Sovryn’s Fullstack Operating System for Bitcoin-native DeFi in the Black Paper
Sovryn Protocol use cases
- Permissionless trading tools for secure swaps, leverage trading, and crypto lending.
- EVM-Compatible smart contracts are integrated to provide a bridge from the Ethereum development community to Bitcoin layer-2.
- Everyday payments using Bitcoin-backed stablecoins as collateral.
- Scalability achieved through sidechains.
- Zero knowledge cryptography to ensure that verifications happen trustlessly with the privacy of both ends of transactions secured.
Sovryn today and tomorrow: The Sovryn protocol already provides tools for Bitcoin-native trading, lending, and leverage. Each of these financial applications are carried out in a permissionless manner and secured by the Bitcoin Blockchain through rootstock (RSK) merge-mining.
Soon, the Sovryn Bitocracy will enable anyone to build EVM-compatible smart contracts that are secured by Bitcoin Proof of Work (PoW). Users will be able to transmit the value of their Bitcoin for use in day-to-day payments, without having to sell their digital gold. With an operating system built specifically for Bitcoin-native DeFi, the sky’s the limit for building a truly decentralised financial system.
Anyone wishing to join the Sovryn Bitocracy will enjoy Bitcoin-class security, privacy enhancing zk-proof shielded transactions, and DeFi products that allow them complete financial sovereignty while putting their Bitcoin to work.
For more details about the Sovryn tech stack, its use cases, and the SOV token see the Sovryn Black Paper.
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