Sovryn introduces decentralized Bitcoin-backed Sovryn Dollar to combat centralized Stablecoins
16 March 2023 – London, UK
Sovryn, the leading Bitcoin-based DeFi (decentralized finance) platform, launches Sovryn Dollar (DLLR).
Sovryn Dollar introduces a new stablecoin standard, 100% backed by Bitcoin to provide unmatched censorship resistance, security and reliability.
In response to regulatory and banking problems centralized stablecoins have recently experienced, Sovryn Dollar offers a decentralized alternative, backed by and redeemable for Bitcoin. Sovryn Dollar goes live today and is available globally.
Sovryn Dollar gives users the opportunity to have a stable and reliable digital asset that is linked to the US dollar without being exposed to the risks associated with centralized stablecoins such as Tether or USDC.
Centralized stablecoins have long been a point of concern for the cryptocurrency community. These coins, like Tether, have been criticized for their lack of transparency and for being vulnerable to transaction censorship, raising concerns about their long-term stability.
Centralized stablecoins have also frozen user funds in response to regulatory pressure. Recent events have added to questions surrounding the long-term viability of most current stablecoins.
In contrast, Sovryn Dollar is designed to be an ultra-reliable and secure decentralized stablecoin. DLLR is aggregated from other Bitcoin-backed stablecoins and pegged to USD.
The Sovryn dollar maintains significantly over-collateralized reserves of BTC to ensure that it is always redeemable for BTC by any holder. It cannot be censored sincethere is no middleman, it does not rely on bank deposits like USDC and it is not algorithmic like Terra UST.
Sovryn Dollar was designed to be secure, highly liquid and convenient. It can easily be converted to Bitcoin, USD or other stable coins, making it a great form of payment and diversified capital that will always remain liquid.
One of the main advantages of the Sovryn Dollar is its low gas fees, which enable cost-effective transactions without compromising stability and reliability. Low-cost transactions are further enhanced with Lightning Network integration.
Bitcoin-backed stablecoins have an important role to play in expanding the use cases for Bitcoin. Despite the growing use of Bitcoin, many potential users currently prefer stable coins for low-risk payments and savings.
This use of centralized USD-pegged digital assets is particularly prevalent in emerging economies.
As a result, many of the most financially vulnerable people are exposed to the many risks of current stablecoins. Bitcoin-backed stablecoins give these users the benefits of Bitcoinwithout the wild price swings and volatility.
Bitcoin-backed stablecoins are a new class of stablecoin. The Sovryn Dollar acts as a standard for this class of stablecoins by combining them into a single coin for deeper liquidity and stability.
Built on Bitcoin layer two, the Sovryn Dollar is issued by the Sovryn Mynt protocol and unifies existing BTC-backed stablecoin issuance protocolsMoney-on-Chain and Zero with additional protocols to be added in the future.
Edan Yago, core contributor to Sovryn, said:
“The market is flooded with unstable and risky stablecoins. Sovryn Dollar provides users with a safer and permissionless alternative. DLLR is a fully transparent, censorship-resistant and truly stable currency built on Bitcoin that we believe will revolutionize the stablecoin market.”
Sovryn’s DLLR provides users with a real alternative to centralized stablecoins such as Tether, USDC or BUSD. Leveraging Bitcoin’s decentralized architecture, Sovryn offers a truly censorship-resistant stablecoin that is reliable, secure and convenient.
Sovryn is a decentralized, community-driven platform that has become a leading Bitcoin layer two ecosystem.
Launched two years ago, the protocol now hosts the majority of Bitcoin-native DeFi and has processed $2 billion in trades and tens of millions of dollars in lending activity.
Sovryn has also launched the Zero protocol, which allows Bitcoin holders to borrow dollars with their BTC at zero percent interest.
For more information, visit here.
Magnus Suverän, core contributor in Sovryn
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