Sovryn Introduces Decentralized Bitcoin-Backed Sovryn Dollar, to Combat Centralized Stablecoins
London, United Kingdom, 16th March, 2023, Chainwire
Sovryn, the leading Bitcoin-based decentralized finance (DeFi) platform, launches the Sovryn Dollar (DLLR). The Sovryn Dollar introduces a new standard of stablecoin, 100% backed by Bitcoin to provide unparalleled censorship-resistance, security, and reliability. In response to the regulatory and banking problems centralized stablecoins have recently experienced, the Sovryn Dollar offers a decentralized alternative, backed by and redeemable for, Bitcoin. The Sovryn Dollar goes live today and is available globally.
The Sovryn Dollar offers users the opportunity to hold a stable and reliable digital asset that is pegged to the US dollar without being exposed to the risks associated with centralized stablecoins like Tether or USDC.
Centralized stablecoins have long been a point of concern for the cryptocurrency community. These coins, such as Tether, have been criticized for their lack of transparency and being vulnerable to transaction-censorship, which has raised 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, the 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 substantially over-collateralized reserves of BTC to ensure it is always redeemable for BTC by any holder. It cannot be censored since there is no middleman, is not reliant on bank deposits like USDC, and is not algorithmic like Terra UST.
The Sovryn Dollar was designed to be secure, highly liquid, and practical. It can be easily converted to Bitcoin, USD, or other stablecoins, making it a great form of payment and diversified capital that will always remain liquid. One of the key advantages of the Sovryn Dollar is its low gas fees, which enables cost-effective transactions without compromising on stability and reliability. Low-cost transactions are being enhanced even further with Lightning Network integration.
Bitcoin-backed stablecoins have an important role to play in expanding the use cases for Bitcoin. Despite the growing adoption of Bitcoin, many potential users currently prefer stablecoins for payments and low-risk savings. This use of centralized USD-pegged digital assets is especially 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 provide these users the benefits of Bitcoin, without 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-layer2, the Sovryn Dollar is issued by the Sovryn Mynt protocol and unifies existing BTC-backed stablecoin issuing protocols, Money-on-Chain and Zero, with additional protocols to be added in the future.
“The market is flooded with unstable and risky stablecoins. The Sovryn Dollar provides users with a safer and permissionless alternative,” said Sovryn Core Contributor, Edan Yago. “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 true alternative to centralized stablecoins like Tether, USDC, or BUSD. By leveraging Bitcoin’s decentralized architecture, Sovryn offers a truly censorship-resistant stablecoin that is reliable, secure, and practical.
Sovryn is a decentralized, community-driven platform that has become a leading Bitcoin layer 2 ecosystem. Launched two years ago, the protocol now hosts the majority of Bitcoin-native DeFi, and has processed $2B 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 0% interest.
For more information: https://sovryn.com/sovryn-dollar