What Is Sovryn (SOV)?

Sovryn is a protocol seeking to build decentralized finance (DeFi) on Bitcoin without any involvement of central authority. According to the whitepaper, Sovryn is an on-chain public protocol controlled by its community and stakeholders. The community of Sovryn is built on the principles of transparency, and protocol is creating an open and fair financial system for the world. However, the Sovryn protocol aims to help everyone win the next major battle by creating the world of finance, the new territory for sovereign individuals. The protocol enables people to expand upon the freedom afforded by Bitcoin to achieve full financial self-sovereignty. Also, Sovryn aims to permit users to protect their rights to self-custody and financial privacy. 

Furthermore, Sovryn builds the missing piece by making the permissionless financial layer for Bitcoin. The protocol gives a Bitcoin-native DeFi-layer infrastructure firmly integrated with Ethereum and other crypto-chains and assets. Moreover, the protocol aims to provide Bitcoins, class-financial tools, and developments such as the following: 

• Sovryn enables the tools to trade, lend, and leverage Bitcoin and other assets in a decentralized manner and within the system secured by the blockchain of Bitcoin.

• The protocol aims to add the ability for anyone to make Ethereum virtual machine-compatible smart contracts secured by Bitcoin merge-mining. A smart contract is a self-regulated contract with the term of the agreement between traders directly written into lines of code.

• Users can easily transmit the value of their Bitcoin for everyday payments by Bitcoin-backed stablecoins.

• Sovryn also aims to enhance Bitcoin privacy with zero-knowledge-proof shielded transactions. 

Additionally, the urgent requirement of Sovryn is for the budgeting of Bitcoin, constant attention, a rise of DeFi, and Ethereum scalability. The Sovryn protocol has been designed for a Layer-2 environment with vertical integration and liquidity. Liquidity is the efficiency where an asset gets converted into currency without affecting the market price. Moreover, the protocol consists of Bitocracy, a simple coordination system that encodes rules in software and enforces them in the blockchain. The Sovryn Bitocracy is based on principles like censorship-resistance, self-custody, transparency, and many more. 

The protocol has a token SOV, used to tokenize the reward, rights, and risk associated with Sovryn Bitocracy. SOV is a tokenized representation of an actual stake in the Sovryn's future. The token is utilized to represent voting powers and coordinates the resources of a decentralized community. Users can stake SOV to cover their losses and thus seek to ensure they do not occur. SOV price is determined by the market's assessment for the demand of SOV today and in the future.