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Sovryn Expanding to Ethereum Blockchain
Bitcoin layer-2 protocol Sovryn is making strides in expanding to the Ethereum blockchain with the assistance of Ethereum Virtual Machine (EVM) developer Build on Bitcoin. This collaboration was recently announced, marking an important milestone for Sovryn’s journey.
Background
Sovryn, a decentralized platform established in 2020, has been a pioneering force in the realm of lending, borrowing, and margin trading using smart contracts within the Bitcoin ecosystem. Operating as a DAO on the Bitcoin sidechain Rootstock (RSK), Sovryn has been at the forefront of integrating advanced DeFi functionalities into the Bitcoin network.
The initial project slated for launch under this partnership is a decentralized exchange (DEX) known as Dex 2.0. Sovryn and Build on Bitcoin promise that this DEX will offer lower gas fees, faster transaction speeds in comparison to competitors like Uniswap, and superior capital efficiency.
Technology Insights
Layer-2 protocols are technological solutions designed to address congestion issues on blockchains by introducing a secondary chain that complements the primary network. Examples of layer-2 solutions include the Lightning Network for Bitcoin and projects like Arbitrum and Optimism for Ethereum.
With the integration of Build on Bitcoin, users gain access to 350 Ethereum Virtual Machine wallets, significantly enhancing user experience and making the ecosystem more accessible and user-friendly.
Future Outlook
According to Build on Bitcoin co-founder Alexei Zamyatin, the collaboration aims to foster the growth of Sovryn’s ecosystem and expand DeFi opportunities to a wider audience of Bitcoin users globally. With the recent launch of BitcoinOS and the innovative “sovryn rollups,” Sovryn is laying the groundwork for decentralized applications (dapps) on the Bitcoin network.
Zamyatin highlights the reliability of Bitcoin as a key motivator for developers to focus on bridging DeFi capabilities to the Bitcoin network. As the foundation of the Web3 ecosystem, Bitcoin’s stability and resilience make it an attractive platform for innovative developments in the crypto space.
With recent developments such as the approval of Bitcoin ETFs and the growing interest in Bitcoin-based projects like Ordinals, Zamyatin remains optimistic about the future of Bitcoin’s technological advancements. The collaboration between Sovryn and Build on Bitcoin signals a new chapter in expanding DeFi opportunities and driving innovation across multiple blockchain networks.
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