SIP 0035 goes to vote: Origins as a Subprotocol
SIP-0035: Origins as a Subprotocol - is now live for voting in the Sovryn Bitocracy! Have your say in the future of a...Read More
SIP-0039: ZERO Token Sale - is now live for voting in the Sovryn Bitocracy! Do you want to see $zUSD backed by Bitcoin? Maybe you don't? VOTE! Voting will be live for ~24 hours from the time the voting begins.
There are a few problems with the collateralized loans products that are currently available on DeFi:
These issues compromise the stability, trust, and predictability of DeFi Loans.
Zero is a decentralized protocol that aims to provide interest-free stablecoin loans using RBTC as collateral, with a minimum BTC collateral ratio of 110%. Loans are further secured by a Stability Pool containing ZUSD and by fellow borrowers collectively acting as guarantors of last resort. The ZUSD token will not be needed by the borrower, as it will automatically generate the B.Stables minted by the Sovryn Mynt.
The Zero protocol is non-custodial, operated purely by smart contracts with no central controlling entity. As with the rest of the Sovryn ecosystem, users will interact directly with the Zero protocol with no KYC or intermediary interference.
Here are some of the great advantages of using the Zero protocol:
Zero can create a new dynamic for Bitcoin, allowing hodlers to avoid ever having to sell their BTC. Zero allows BTC to be used to create a 0% interest LoC (line of credit) for fiat-denominated needs. Everything that would have previously required selling BTC can now be accomplished by borrowing against this LoC.
With the introduction of the Sovryn Mynt, Sovryn aims to improve the decentralization and security of stablecoin liquidity. With the addition of Zero, Bitcoiners can use their BTC as collateral for creating stablecoin that can be used for their everyday economic needs, including trading, lending, payments, and hedging.
This bootstrap event for Zero will occur on the Sovryn Origins Launchpad