Bitcoin-Based DeFi Protocol Sovryn (SOV) Gets Listed on AscendEX
Aiswarya Gopan • 2 min read
Bitcoin’s fastest growing ecosystem Sovryn has been listed on leading cryptocurrency exchange AscendEX, a move that will help drive up adoption and interest in the first DeFi operating system designed for the world’s leading cryptocurrency. Sovryn (SOV) is a non-custodial and permissionless smart contract based system is developed to be the world’s first Bitcoin-native application, offering users access to decentralized lending, borrowing and margin trading.
AscendEX will allow its users to trade the SOV token against USDT and BTC, permitting both deposits and withdrawals. In addition, the exchange will also conduct three promotional events to drive up interest in trading this token among its users, which are set to run from 15 September for a period of one week. The events will offer participants pooled rewards in USDT that can be earned via referrals and by trading the SOV token on the platform during the period.
Sovryn is an AMM protocol developed for Bitcoin, bringing DeFi capabilities to the crypto king and letting it make its mark in the sector that has been experiencing rapid growth over the past year, even through the periods of lull that cryptocurrencies have gone through. The protocol supports instant trades between tokens in a cost effective manner, lets users perform long and short trades and even borrow leverage from the lending pool. In addition, token holders also have the opportunity to lend their holdings to margin traders and borrowers, earning interest in the process. What’s more, investors can use their BTC tokens from any Bitcoin wallet via smart contracts and decentralized products on the Sovryn protocol.
The team of developers is also working to add more features and increase the versatility of their offering. In the coming months, the developers will launch borrow features, which will allow users and smart contracts to borrow SOV from the lending pool in an over-collateralized manner. Also coming up is the option for BTC-based perpetual swaps for serious traders, giving them up to 20 times leverage. The protocol will also launch a stablecoin on its ecosystem which will be backed by Bitcoin so that users can use USD-pegged tokens backed by overcollateralized Bitcoin.
The Sovryn protocol offers an efficient and reliable way for crypto investors to put their Bitcoin holdings to work by lending them to margin trading. The increased liquidity on offer is a great way for developers of dApps and exchanges to perform permissionless integration with the protocol and provide more features and functionalities to their users as well as for Sovryn’s users.
While Bitcoin is not a popular choice for DeFi projects owing to its slow transaction handling speeds, Sovryn is built on a Bitcoin side chain called RSK, which supports lower average block times of around 30 seconds against the Bitcoin’s average block time of 10 minutes. While this may be on the lower side when compared with other DeFi blockchains like Ethereum and especially Solana, running on the world’s most popular cryptocurrency network gives it an edge in terms of credibility and reliability that several other players on other blockchains may lack.