Decentralized funding facilitator Sovryn, which runs on RSK Bitcoin sidechain, has gone live for public use. Users will be able to gain access to complete features for buying and selling Bitcoin (BTC) in a noncustodial, trustless ecosystem, while capitalizing on exceptional leverage yield possibilities.
The platform reflects a combo of top DeFi creating blocks such as collateralized lending covenant and mechanized exchange providing liquidity.
Users will be able to open both long and short positions by using maximum 5x leverage, while possessors of Bitcoin (BTC), Dollar on Chain (DOC) and Tether (USDT) stablecoin will be able to get paid in the form of interest for lending their assets.
Further in December, the venture intends to introduce decentralized governance by forking Compound’s contracts. Being in sync with Ethereum Virtual Machine, RSK backs Ethereum’s Solidity smart contract language.
Early participants of Sovryn will have unique access to the governance tokens which are planned to be offered for sale in 1Q21. The tokens will permit holders to take part in governance, although the group has made staking compulsory. The voting power is directly correlated to the time for which tokens get staked.
Before roll out Sovryn was oversubscribed to the tune of $2.10 million, a figure symbolically reminding about the total quantity of Bitcoin that will be ever produced. The funding round wall headed by Collider Ventures, Greenfield One, Monday Capital and many unrevealed investors. Collider Labs and BlockVenture offered initial capital and development backing.
In the recent past, RSK sidechain recorded a plethora of updates and ventures being hosted over it. The ventures provide a quicker, smart contract aided blockchain safeguarded by merge-mining with Bitcoin. Its native crypto is rBTC, a wrapped variant of Bitcoin. In recent times, the venture stated that it overhauled the gap to permit trustless movement of Bitcon to the sidechain.
Systematically, the RSK ecosystem is developing DeFi covenant creating blocks, with a stablecoin-creating covenant in Dollar on Chain already in place. It has also created an unconventional decentralized cryptocurrency exchange platform, which utilizes a mix model consisting of automated market creators and order books.
