Join the waitlist for Zero

Brought to you by Sovryn

May 24, 2022

The waitlist for getting early access to Zero is now live! Visit the Zero waitlist registration page to register, secure your place in the queue, and be amongst the first to try out the 0% interest, bitcoin-backed loan. 

The majority of us have been brought up with the wrong mindset about borrowing. Take out a loan to buy a car or go on holiday. Basically, take out a loan to buy a depreciating asset. Wouldn’t it be better to borrow against an appreciating asset?

What if we could flip the script? What if we could borrow from ourselves, instead of from a bank? What if we could borrow for an indefinite period of time, against our own assets, and pay 0% interest?

Well, this is now possible with Zero. Borrow money at 0% interest using your bitcoin as collateral and only pay back the loan back when you choose to.

Be your own bank

Whether you're an individual who wants to use your BTC without selling it, or you are a business who wants easy access to capital - Zero opens up a world of possibilities.

Many people around the world can’t easily access credit. They might not have a  positive credit rating score. Interest rates in their country could be extremely high. They may not have regular cash flow to meet the repayment schedule. 

Or, high inflation may mean that they are in a constant uphill struggle to both meet their cost of living and make loan repayments.

For businesses, borrowing can be vital to company growth, particularly in the early stages. Quite often, getting a loan from a bank can be a difficult and lengthy process for small businesses, and the cost of interest on loans can sometimes be prohibitive.

There are plenty of reasons you might need a short-medium term line of credit. Regardless of the situation, by using your bitcoin as collateral, you can get a quick cash injection from Sovryn when you need it. Plus, avoid interest charges all together, and have the control to choose when you pay the loan back.

A bitcoin-backed loan opens up new avenues for borrowing, even with relatively small bitcoin holdings. One of the main benefits of getting a bitcoin-backed loan is that you can create liquidity (or cash flow) from your bitcoin by using it as collateral, without ever having to sell it!

Nothing stings quite like being forced to sell at the wrong time. Taking out a line of credit with Zero helps avoid this situation.

What is a Zero loan?

The basic principle works the same as a mortgage or a regular bank loan. You put down some collateral, which in this case would be RBTC, to get a loan and pay it off over time. (RBTC is pegged 1:1 with BTC and is the native token of the Rootstock blockchain. The Sovryn protocol is built on Rootstock and uses RBTC.)

At Sovryn, you don’t need to pass a credit check to get a Zero loan. All you need is the bitcoin you want to use as collateral. Bitcoin hodlers who aren’t concerned about short-term volatility, because they’re in it for the long haul, can put their assets to use and create extra liquidity.

When you take out a Zero loan, a USD-pegged stablecoin called ZUSD gets minted. You need to maintain a minimum collateral ratio of 110%. This basically means that for every $1 of ZUSD you borrow, you deposit $1.10 worth of RBTC. It is advisable, however, to maintain a higher collateral ratio as the price of BTC is highly volatile.

Once repayment of the loan is complete, the RBTC you deposited as collateral is returned.

While you retain ownership of the RBTC you use as collateral, you do lose the ability to trade it or use it to make transactions. If the value of your deposited collateral drops significantly, you may need to deposit more to maintain a healthy collateral ratio or else you risk liquidation.

The Zero loan is a bitcoin-backed, 0% interest loan with no repayment deadline. Taking out a Zero loan allows you to borrow at 0% interest with no KYC, credit checks, or fixed deadlines for repayments. You can leave your line of credit open as long as a sufficient level of collateral is maintained.

Let that sink in. 

You can leave your line of credit open. Forever. At 0% interest. As long as the minimum collateral ratio is maintained. 

Fees

Rather than an interest rate that incurs ongoing costs, you are charged a one-time borrowing fee when you take out a Zero loan. The borrowing fee is charged as a percentage of the loan amount in the ZUSD stablecoins you receive. Repaying your loan is free. 

Check out the Sovryn Wiki for more information about how Zero and the ZUSD stablecoin work.

The waitlist is now open

This is a major milestone for Sovryn. We’re delighted to officially invite you to participate in the building of bitcoin-backed stablecoin history by signing up for the waitlist to get early access to Zero!

In the coming weeks, we will begin sending out emails inviting people on the waitlist to get early access to Zero. Keep an eye on your inbox for the invite email.

Places in the early access trial are first-come, first-served so make sure to get in early and register your name on the waitlist as soon as possible.

Get bumped up the queue with our referral program

Your position on the waitlist can be bumped up by sharing Zero with your network using the unique referral link that you will receive in the waitlist signup confirmation email. For each user that registers for the waitlist via your referral link, you will be bumped up in the queue. How far up the queue each referral bumps you, will vary based on the amount of people signing up to the waitlist.

In the meantime, start thinking about what you’re going to do with your 0% interest loan!

Stay Sovryn

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