SIP-0039 Goes to Vote - Zero Token Sale

brought to you by Judas

November 16, 2021

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.

What is SIP-0039 looking to solve?

There are a few problems with the collateralized loans products that are currently available on DeFi:

  • Interest rates are high and vary over time, making it difficult to project a loan payment.
  • There is no way for lenders to insure themselves against borrower default.
  • Shallow liquidity - Depending on the platform, liquidity can get very low.

These issues compromise the stability, trust, and predictability of DeFi Loans.

How does SIP-0039 solve this?

​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:

  • ​0% interest rate - borrowers do not need to worry about constantly accruing debt.
  • ​Minimum collateral ratio of 110% - efficient use of RBTC on deposit.
  • A subprotocol of the Sovryn protocol - all operations are algorithmic and fully automated, and protocol parameters are upgradable by Bitocracy.
  • Directly redeemable - ZUSD can be redeemed at face value for the underlying collateral at any time, guaranteeing a price floor of $1.
  • Bitocracy controlled - Zero will be deployed within the Sovryn protocol, making it censorship-resistant and under the control of Bitocracy.

Why does it matter?

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

  • Have your vote on whether SIP-0039 should pass or be rejected in the Sovryn Bitocracy here
  • See the discussion around SIP-0039 on the Sovryn Forum here
  • See the proposed SIP word-for-word in GitHub here
  • If you have any questions we are always here for you on Discord & Telegram
  • and most importantly:


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