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Sovryn Brings DeFi Bitcoin to RSK

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Bitcoin lying on the table

During the last months, DeFi Bitcoin (BTC) tokens have been offering services on top of the Ethereum (ETH) network. However, these tokenized BTC coins do not offer the best solutions users can have. Indeed they may be affected by a lack of decentralization, capital efficiency and even they could have security issues.

This is why Sovryn is working to bring DeFi Bitcoin to RSK, one of the most advanced networks and certainly the most viable option to handle Bitcoin for decentralized finance solutions.

What is DeFi Bitcoin?

Decentralized Finance (DeFi) projects have been growing all over the world during this year. We have seen how projects such as Year.Finance or Uniswap attracted a large number of users. Yes, they are great platforms and offer fantastic solutions. Nonetheless, there is no safe, fast and reliable Bitcoin token for users that want to have exposure to Bitcoin.

Additionally, the current DeFi Bitcoin solutions in the market are not following the crypto market ethos of decentralization and security.

It is worth taking into account that Bitcoin has an on-chain market larger than the one of Ethereum, with an addressable market of $1 billion to $3 billion, in comparison to Ethereum with $500 million. The off-chain reach of Bitcoin is even larger with an addressable market of $3.5 billion, compared to $300 to $600 million on Ethereum.

Issues Affecting DeFi Bitcoin on Ethereum

Indeed, the most popular DeFi Bitcoin token, Wrapped Bitcoin (wBTC) is currently relying on just one Bitcoin custodian that is currently keeping users’ Bitcoins secure.

This custodian could be hacked, attacked or even affected by technical issues. If they lose these funds, nobody is going to give them back to you again.

Another solution, renBTC could be even worse. At the moment, this project is working with a multisig structure that could make things really unsafe for renBTC holders. When we talk about DeFi projects, we are talking about risky solutions and products. Do we need to add an additional risk when handling our DeFi Bitcoin?

Furthermore, tBTC is suffering from capital efficiency issues. After a bugy debut in May, this digital currency had to be relaunched by its team, but its adoption is still far from ideal. Would you trust an already failing project?

Sovryn Solutions on RSK

With Sovryn, you will be able to use Bitcoin for lending and trading in a totally decentralized manner and everything on top of the revolutionary RSK network. Bitcoin on RSK is going to be the most viable option for Bitcoin DeFi solutions right now.

The DeFi market expanded with traders, borrowers and lenders that were searching for decentralized solutions to carry these activities. Although Ethereum is offering some of these solutions, Bitcoin is still far from being adopted in the DeFi market due to the reasons we mentioned before.

However, Sovryn is working to bring the Bitcoin economy to the DeFi world by using the RSK network. With Sovryn, users will be able to perform leveraged trades in Bitcoin in a permissionless way and without having to give the custody of their coins to third-parties.

Sovryn will not only be providing you with the possibility to trade leverage the possibilities of DeFi on top of Bitcoin but they will be also focusing on UI and user experience. Most of the DeFi projects in the market do have a lack of easy-to-use interface, which makes it difficult for newcomers to start using these solutions.

This is why the team behind Sovryn is now working in order to provide the best DeFi solutions using the RSK network and making it easier for users to feel comfortable while using these solutions.

The RSK network works as a second layer and smart-contract protocol for Bitcoin, allowing the most popular cryptocurrency in the world to have more and unique features. Thus, RSK adds innovative solutions and allows for developers to create a wide range of products for Bitcoin to be even more useful.

The RSK network does not only allow for processing payments but it is also possible to use it to provide liquidity to blockchain-based assets, to trade digital currencies in a decentralized manner or to lend and borrow money using BTC holdings as collateral.

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