What is Sovryn?
Sovryn is a decentralized finance (DeFi) platform built on the RSK Bitcoin sidechain, designed to extend Bitcoin's capabilities into the DeFi space. It leverages non-custodial and permissionless smart contracts to offer a suite of financial services, including lending, borrowing, margin trading, and more, while maintaining the security and decentralization of the Bitcoin network.
Sovryn allows users to lend and borrow assets such as RBTC, XUSD, DoC, and BPRO, with all lending being over-collateralized to ensure security. The platform dynamically adjusts interest rates based on available liquidity. For traders, Sovryn provides margin trading with up to 5x leverage, enabling long and short positions on various asset pairs. Additionally, the platform features a low-cost, low-slippage Automated Market Maker (AMM) for instant token trades and market-making opportunities, allowing users to earn trading fees and additional rewards in SOV tokens.
Sovryn also includes innovative features like the Zero protocol, which offers 0% interest loans by allowing users to borrow stablecoins like ZUSD or DLLR against their Bitcoin. This feature makes it highly attractive for users looking to leverage their Bitcoin holdings without incurring interest charges. Governance on Sovryn is managed through Bitocracy, where SOV token holders stake their tokens to gain voting power and participate in key protocol decisions, ensuring a community-driven approach to the platform's development.
Overall, Sovryn aims to create a comprehensive financial ecosystem centered around Bitcoin, enhancing its utility and integrating advanced DeFi functionalities.