A new platform has been launched for decentralized margin trading – and it’s not on Ethereum. Sovryn has introduced its options trading platform on Bitcoin’s smart contract network RSK, bringing decentralized swaps directly to the Bitcoin community. The move signals a shift in the pendulum that has seen much of the onchain BTC trading move to Ethereum, where assets such as WBTC are traded and deployed on the chain.
Trading and lending are the main use cases for this Sovryn, which is poised to open its virtual doors to the public after completing a $ 2.1 million raise led by Greenfield One, Collider Ventures and Monday Capital. Collider Labs and BlockVenture also brought in seed capital and provided good support. The platform is scheduled to go live today, allowing BTC traders to experience DEX swaps and DeFi tools in a scalable, low-cost environment.
Margin trading and liquid swaps
The product of intensive development, followed by three months of rigorous audits, Sovryn is now ready for public consumption. BTC, USDT and DOC, the Money on Chain stablecoin, can be traded with up to 5x leverage, all executed on the chain. The platform also allows holders of these assets to earn interest by lending them. Sovryn promises to provide a liquid token swap environment, implemented through its custom AMM.
While the core products of the platform are non-custodial, there is also support for custodial trading. The benefits of building the platform on RSK are that it anchors Sovryn closer to Bitcoin, the hub that the crypto world is all about. It also alleviates the high cost and slow transaction issues endemic to Ethereum.
Handing over control to the community
One of the next tasks on Sovryn’s roadmap is to roll out a governance framework based on the model developed by Compound. This system is widely used by DeFi projects and has been extensively tested. Token holders can submit proposals based on the number of SOVs they own. Proposals passed by the community once the minimum number of votes has been reached are scheduled using a time slot contract.
The Sovryn platform includes many of the features that DeFi users will have come to expect from a year spent chasing yields, liquidity mining, and DEX trading. Decentralized oracles are used for fraud-resistant pricing, an insurance fund protects against undervalued loans, and the open-source software is subject to rigorous security audits.
A new era for Bitcoin Defi
Commenting on the launch of Sovryn, Diego Gutierrez Zaldivar of RSK parent company IOVlabs said: Bitcoin provides the largest addressable market for DeFi. Built on top of Bitcoin, RSK is the most secure smart contract platform in the world, enabling greater scalability and low transaction costs. We are very excited about the launch of Sovryn’s trading and lending platform, which provides a very strong offering to continue building momentum on the DeFi for Bitcoin space. “
When Bitcoin was first launched, there were no block explorers or wallets, and coins could only be sent through command line interaction. However, the first tools for sending, receiving and storing coins soon followed, including the BitcoinQt wallet created by Satoshi himself. In the summer of 2010, the first bitcoin exchange was launched, followed by Mt. Gox a year later.
A decade later, Bitcoin has transcended the blockchain and the community that launched it. From major banks to solo DeFi traders, BTC is now everywhere, it seems, packaged, tokenized, collateralized and deployed. Launching Sovryn on RSKs Bitcoin sidechain completes the circle of BTC while strengthening the ways in which bitcoin can be used to enrich its holders.