Sovryn will launch additional subprotocols according to this model, and they will be able to find a placement on Origins’ launchpad without having to pay the platform’s listing fee.
Decentralized finance (DeFi) has been booming across multiple blockchains lately. The total value locked (TVL) in DeFi smart contracts now reaches ever closer to the $300 billion mark, and it may get a huge boost in volume from an unexpected source: Bitcoin.
Bitcoin dominates the crypto market when each blockchain’s assets are ranked by market cap, but it has lagged behind Ethereum and other chains in the DeFi department. That’s mostly because the world’s first blockchain was originally programmed in a way that it couldn’t support smart contracts, which are essential for providing trustless peer-to-peer financial services.
Today, Bitcoin sidechain implementations like Rootstock allow users to participate in DeFi using native bitcoin to swap, borrow, lend, and yield farm on Sovryn, a community governed protocol bringing innovations in DeFi to Bitcoin.
Bitcoin Arrives Fashionably Late to the DeFi Party, for the Better
DeFi has experienced explosive growth and seen a multitude of innovations enter the nascent financial sector over the last few years. New financial primitives from DeFi, like decentralized token swaps and yield farming, have changed the way people approach digitized financial services.
The arrival of all this growth, however, has also brought about a lot of growing pains. Not to mention a ton of hacks and exploits that have been discovered and patched, the decentralized applications (dApps) that preceded the DeFi dApps of today had a paltry survival rate through the ICO boom that preceded projects like Sovryn.
The DeFi ecosystem has matured a lot over the years, and this means that Bitcoin’s somewhat late entrance to DeFi might be for the better, after all. It appears like DeFi has entered a stage of sustainable growth, and one major player in sustaining this growth has become the launchpad.
These platforms reduce the number of scammy or generally weak projects in the DeFi ecosystem, and at the same time, they promote projects with viable futures, helping fundraise and build communities in their early stages.
Sovryn Origins has been spearheading Sovryn’s bid to separate the proverbial wheat from the chaff, and projects like Babelfish have already found their start through this Bitcoin-based launchpad. Babelfish, a cross-chain stablecoin aggregator, raised nearly 46 BTC during its Origins public sale and a similar amount in pre-sale as well as the public sale, while Sovyrn MYNT raised 370,000 SOV from 3348 participating wallets. These are by no means small sums for any project to begin its development.
Sovryn Origins Launches Subprotocol to Launch Subprotocols
Following Origins’ recent successes, the Sovryn community voted to maneuver the launchpad into its own status as a protocol with a token of its own, OG.
Origins’ purpose is to help launch new subprotocols and projects that will create value for the Sovryn community. By operating as a separate subprotocol of its own, governance votes that guide which projects will be featured on Origins’ launchpad will be handled separately from those in the Sovryn community through votes made in OG.
The tokenomics of OG creates a relationship where its value is intrinsically linked with SOV, and this acts as an incentive for the decentralized community supporting SOV to support Origins’ endeavors to successfully launch the best projects looking for its assistance. This creates a system of sustainable growth through cooperation and innovation through financial reward or penalty for the lack thereof.
An improvement proposal, SIP-0035, which was recently passed by the Sovryn community, details the benefits of launching Origins as a subprotocol with its own token. The proposal also outlines the parameters of a future private and public sale of OG, which will occur in soon.
According to the proposal, Sovryn will launch additional subprotocols according to this model, and they will be able to find a placement on Origins’ launchpad without having to pay the platform’s listing fee.
Origin’s DNA Incentivizes All Stakeholders
Another important element built into Origins’ value proposition is the incentivization of all key participants in the ecosystem. For example, stakers of OG can benefit from 50% of revenue from the staking reward program, whole SOV stakers will receive 20% of the revenue. For projects looking for a launchpad partner, they can benefit from the expansive marketing and community reach that Origins taps into, as well as AMM integration into Sovryn.
The future looks bright for DeFi on Bitcoin with such improvements to the ecosystem being set in place, and it will be interesting to see what innovations are launched from Origins as it sets off as a protocol of its own.
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