The Bitcoin network debuted in 2009 and introduced an asset class the world had never seen before, with some calling the launch of Bitcoin the start of Decentralized Finance (DeFi). However, the decentralized applications (dApps) most associated with DeFi services have been developed on other channels.
Bitcoin was a major breakthrough for the technology, but its programming did not allow dApps to run on its network when it was first launched. Recently, the integration of a sidechain like Rootstock brought smart contract and dApp functionality to Bitcoin, and it turned out to be a game changer for DeFi.
DeFi protocols like Sovryn, built on Rootstock, allows native bitcoin to be used in DeFi dApps. This means that the world’s first blockchain, supporting the deepest liquidity in the crypto world, is experiencing a growth spurt in the number of emerging projects on its network.
How Sovryn Origins’ Launchpad Fuels Bitcoin DeFi Growth
Sovryn is a multiservice Bitcoin DeFi protocol that facilitates trading, borrowing, lending, and yield farming. The protocol is governed as a bitocracy where its users put SOV to vote on Sovryn’s future direction, making Sovryn a community-centric protocol that is driven by its users as it moves forward.
The protocol promotes the development of new projects through Origins of Sovryn, a launch pad that supports independent projects, including those that build the Bitcoin and Sovryn ecosystem, with the ability to raise native BTC funds and other native Bitcoin assets.
The Sovryn Origins Launch Pad also allows the Sovryn community to review new projects, eliminate bad actors, and support the most promising projects throughout their first steps towards development and launch.
This early funding can spur projects to a more successful start. This gives community members a chance to receive the project tokens at a reduced price, which is a win-win situation for everyone involved.
An independent project, Babelfish, raised nearly 46 BTC in 30 minutes via the Sovryn Origins launch pad after the Sovryn community gave the green light to the listing project. During the sale, 1,022 community wallets participated in the launch event, and a total of four projects have now continued to develop with the cooperation of Sovryn users.
Why Sovryn Origins has become a self-directed sub-protocol
Sovryn users vote on Sovryn Improvement Proposals (SIP) to make protocol changes. These SIPs go through several stages before being voted on, with many ideas behind their implementation being discussed in community forums.
A recent proposal, SIP-0035, was recently adopted with enough votes in the staked SOV to launch Sovryn Origins as a sub-protocol governed by its own token, OG. The first four projects to launch on the Sovryn Origins launch pad have been whitelisted through votes cast in SOV, and in the future those votes will be held by OG holders instead. As described in one of Sovryn’s projects blog posts, creating a new ecosystem for Sovryn Origins means GO holders will receive the lion’s share of the profits from the success of the projects they choose to initiate.
How community engagement makes Sovryn Origin successful
Rewarding its community of supporters is one of the goals of launching Sovryn Origins’ own token, and rightly so since the Protocol owes much of its success to the community that supports it. Additionally, the value of OG will be linked to SOV via a binding curve to create an incentive for more SOV holders to help improve Sovryn Origins in the future.
The idea for this bond curve first emerged in a message on the forum from a contributor from the Sovryn community, and the implementation of this idea demonstrates how the power of the group can be harnessed to achieve a common goal. As Sovryn continues to grow and develop new projects across the Sovryn Origins ecosystem, future sub-protocols will surely emerge with such an enthusiastic support base.