London, United Kingdom, March 18, 2023 / AlexaBlockchain/ – Today marks the launch of the Sovryn Dollar (DLLR), a new stablecoin introduced by the leading decentralized finance (DeFi) platform Sovryn. This stablecoin is unlike any other, as it is fully backed by Bitcoin, offering unparalleled security, censorship-resistance, and reliability.
With regulatory and banking issues plaguing centralized stablecoins, the Sovryn Dollar provides a decentralized alternative that is redeemable for Bitcoin. The Sovryn Dollar is now available globally and aims to set a new standard in stablecoin technology.
By pegging itself to the US dollar without being linked to centralized stablecoins such as Tether or USDC, the Sovryn Dollar provides users with a stable and trustworthy digital asset option.
For years, the cryptocurrency community has been wary of centralized stablecoins like Tether due to their opacity and susceptibility to transaction censorship, which has called into question their reliability. Moreover, these stablecoins have previously frozen user funds in response to regulatory scrutiny, casting doubt on their sustainability. Recent developments have only heightened concerns about the long-term feasibility of most existing stablecoins.
The Sovryn Dollar distinguishes itself as a decentralized and secure stablecoin, in contrast to centralized stablecoins that face regulatory and stability challenges. The DLLR is backed by BTC and aggregated from other bitcoin-backed stablecoins, pegged to the USD, and its reserves are over-collateralized with BTC to guarantee its redeemability. Unlike centralized stablecoins such as USDC, the Sovryn Dollar does not rely on bank deposits and is not vulnerable to transaction censorship due to its decentralized nature. Additionally, it is not algorithmic like Terra UST.
The Sovryn Dollar was created with security, liquidity, and practicality in mind. It offers easy conversion to Bitcoin, USD, or other stablecoins, making it a versatile form of payment and diversified capital that remains liquid. The Sovryn Dollar’s low gas fees are a significant advantage, providing cost-effective transactions without sacrificing stability and reliability. Furthermore, integration with the Lightning Network is further enhancing the cost-effectiveness of transactions.
Bitcoin-backed stablecoins are vital in broadening the applications of Bitcoin. Despite the increasing acceptance of Bitcoin, many potential users still prefer stablecoins for low-risk savings and payments. The use of centralized USD-pegged digital assets is particularly widespread in emerging markets, where the most financially vulnerable populations face the many hazards of current stablecoins. By backing stablecoins with Bitcoin, these users gain the advantages of Bitcoin without the erratic price changes and volatility.
Bitcoin-backed stablecoins constitute a novel stablecoin category, and the Sovryn Dollar sets a benchmark for this category. It brings together existing BTC-backed stablecoin protocols, such as Money-on-Chain and Zero, with additional protocols to be integrated in the future, to create a single coin for greater liquidity and stability. Issued by the Sovryn Mynt protocol and built on Bitcoin-layer2, the Sovryn Dollar is a unique offering in the stablecoin market.
Sovryn Core Contributor, Edan Yago, said: “The market is flooded with unstable and risky stablecoins. The 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 presents users with a genuine substitute for centralized stablecoins such as Tether, USDC, or BUSD. By taking advantage of Bitcoin’s decentralized framework, Sovryn delivers a genuinely censorship-resistant stablecoin that is dependable, secure, and functional.
About Sovryn
Sovryn is a community-governed and decentralized platform that has emerged as a dominant ecosystem for Bitcoin layer 2. In its two-year existence, the protocol has become a hub for Bitcoin-native DeFi, processing trades worth $2B and facilitating tens of millions of dollars in lending activities. Additionally, Sovryn has rolled out the Zero protocol, which enables BTC holders to borrow dollars against their BTC without any interest.
For more information: https://sovryn.com/sovryn-dollar
Contact
Core Contributor
Magnus Suverän
Sovryn
adoption@sovryn.com
Source: Sovryn