29 Aug 2020


The problem


At the heart of the Bitcoin economy there are traders and lenders. All of these activities are currently being channelled through centralized services because great, easy to use, decentralized alternatives do not exist.


We came to Bitcoin for decentralization that empowers user sovereignty. Yet we must often give up that decentralization if we ever want to use our bitcoins. This absurdity must end.


The solution


Sovryn is a decentralized protocol for Bitcoin lending and margin trading. The protocol can be easily integrated into new and existing exchanges, or accessed simply through a web3 portal.


Sovryn will provide decentralized alternatives of all the most popular centralised Bitcoin finance tools.


Current Features


Spot-Exchange: A low cost, low-slippage, AMM allowing instant trades between tokens

Margin Trading: Creates up to 5X long/short trades, allowing users to borrow leverage from the lending pool

Lending Pool: Allows HODLers to earn interest by lending tokens to margin traders and borrowers

SmartBTC Relay: Allows use of Bitcoin almost instantly with smart contracts and decentralized products, from any Bitcoin wallet

Bitcoin-backed Stablecoin: Users can use a USD-pegged token, backed by overcollaterilzed Bitcoin


Future Features


Borrowing: Allows users and smart contracts to borrow tokens from the lending pool. All lending is over-collateralized Perpetual Swap: BTC backed perpetual swaps allowing trades with up to 20X leverage


Benefits to Bitcoin and Bitcoiners


Sovyrn benefits the entire Bitcoin ecosystem by providing easy-to-use, decentralized finance alternatives.



Use Cases


Stacking Sats and HyperHODLing


Alice, a hodler, wants to put her BTC stack to work by lending them to a margin trade.


Bob, a trader, is so bullish, he isn’t satisfied just to HODL. He wants to HyperHODL. He opens a long position on BTC, borrowing the funds from Alice.

Alice and Bob do not want to move their BTC onto a centralized service and give up control of their keys. Using Sovryn, Alice issues a peer to peer loan straight from her wallet and Bob trades straight from his. Alice is now stacking sats, and Bob is HyperHodling without compromising their privacy, control or ideals.


LegoLand


Carol is building a centralized exchange. David is building a decentralized hedging dapp. Both can integrate permissionlessly with the trading, lending and liquidity of Sovryn. In doing so, they gain instant access to more liquidity, more features and can provide greater functionality for both their users and those of Sovryn.


Roadmap


Product roadmap


Decentralized Governance


Decentralization is the key to user Sovereignty. By denying central points of control, it shifts the balance of power from centralized authorities, back to the users. Sovryn is being built with the goal of maximal decentralization, while still being able to provide ease-of-use and the ability to constantly improve. Sovryn will never have the same level of decentralization of Bitcoin but it’s also not trying to be the next global reserve currency.


We expect to continue engineering greater assurances of decentralization, as Sovryn evolves. In the early days, Sovryn will be decentralized by the following means: