Sovryn is the new Bitcoin-native decentralized finance platform that continues to drive the development of DeFi protocols within the Bitcoin ecosystem, and this time, in a non-custodial manner.
The decentralized protocol designed to function as a Bitcoin margin lending and trading platform, sovryn, is born on the network of RSK, the second layer solution that enables the creation of Smart contract on the Bitcoin network. This new financial platform will allow users to access a full range of DeFi services, to trade with Bitcoin (BTC), without custody. In this way, users will be able to take full advantage of all the potential that the ecosystems of decentralized finance (Challenge), generating new opportunities for leverage and performance.
So far, the opportunities for Bitcoin users to participate within DeFi ecosystems are quite limited, and it is through WBTC, the wrapped BTC token in the blockchain de Ethereum, which they can do by placing their cryptocurrencies in the custody of BitGo. However, while WBTC has become a valuable instrument for BTC users to access DeFi, it does not allow them to fully exploit the potential of DeFi ecosystems themselves, and it also means that their cryptocurrencies are always in the hands of a third party.
Therefore, the solution presented by Suvryn, as a native Bitcoin margin trading platform, offers better performance opportunities for BTC users, while guaranteeing absolute control of users over their own cryptocurrencies, since this platform does not require permissions or custody.
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A more viable and promising solution
As we mentioned, many of the problems for Bitcoin users to access DeFi protocols is centralization. The need to rely on a trusted third party for cryptocurrencies can represent a great risk, since if the security of that custodian is compromised, the funds stored in Bitcoin, or another asset, will also be compromised. Thus, the solution presented by Suvryn seems to be the most viable, accessible and reliable so far.
Being able to access the potential of DeFi without needing to trust a third party is a great evolution for projects that seek to introduce Bitcoin users to the universe of decentralized finance. Through this new platform, Users will be able to access secured loans to earn interest, in addition to enjoying other DeFi products, such as a Automated Market Making (AMM) ExchangeIn this way, BTC, USDT and DOC users will be able to lend their assets on this platform and generate profits from it, in addition to using their bitcoins in the medium or long term within the platform with a leverage of up to 5x.
Looking ahead, this platform also plans to emulate Compound’s governance model and launch its SOV governance token in Q2021 XNUMX.
Defending the true essence of Bitcoin
When Satoshi Nakamoto He created Bitcoin to offer society a decentralized and autonomous financial system, where each person could be free and the absolute owner of their own money, freeing themselves from the power and control that governments currently exercise over us.
Well, Suvryn keeps this essence alive, by focusing on decentralization and guaranteeing users' sovereignty over their own currencies. Also, this platform does not require registration accounts or KYC, so “deepens the decentralization of the Bitcoin economy”, making this cryptocurrency much more versatile.
To use Suvryn's services, there are also no token exchanges or wrapped assets such as WBTC or rBTC required.
Decentralization guaranteed
Suvryn developers specify that the platform is based on smart contracts, written in Ethereum's Solidity language, which will be combined with oracles on the blockchain to ensure the platform's decentralization. The developers also assure that these smart contracts will be audited for several months to detect possible errors and flaws.
Moreover, the new decentralized financial platform is completely open source, so any developer, or interested person, can review the code whenever they want. Sovryn project leader, Edan Yago, said that the team behind the development of this platform shares the vision of “a borderless and censorship-resistant digital currency.”
Thus, Suvryn presents a viable alternative to ensure accessibility to DeFi financial services without losing the essence of decentralization.
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