Bitcoin’s emergence on the global stage marked a revolutionary turning point in the areas of technology and finance and one which wasn’t built upon until the rise of Ethereum over six years later.
Ethereum quickly shot to prominence thanks to its pioneering use of smart contracts, with the second-most well-known cryptocurrency eventually laying the foundation for the subsequent ICO craze; the explosion of decentralized finance (DeFi); and most recently, the emergence of non-fungible tokens (NFT).
But decentralized finance needn’t be confined to Ethereum or other layer-1 platforms. Nor must Bitcoin be excluded.
Up until now, Bitcoiners have typically had to convert their BTC coins into a version compatible with token standards on other DeFi-friendly platforms, as seen with Wrapped Bitcoin (WBTC) on Ethereum. This has obstructed not only retail investors seeking out ICO/IDO projects, but also the teams behind emergent protocols who may seek to raise funds in Bitcoin directly.
Origins on Sovryn
This obstruction is being chipped away by the day, however, with the rise of Bitcoin-based launchpads such as Sovryn Origins (OG).
Sovryn Origins is a sub-protocol on the Sovryn (SOV) protocol that acts as a kickstarter and fundraising platform for those who wish to raise capital in Bitcoin natively. Using Sovryn Origins, teams and projects building in and around the Bitcoin ecosystem can conduct token sales and enact community governance in a decentralized way, without having to rely on the middle-men of other blockchain platforms.
In pursuit of its ambitions, Origins builds upon the Bitcoin-centric Sovryn ecosystem, a non-custodial, decentralized smart-contract platform for Bitcoin-based DeFi. Ostensibly, Sovryn acts as the base layer for Bitcoin DeFi projects, allowing for the borrowing, lending and margin trading of BTC without having to utilize another blockchain – or buy another altcoin.
The OG token native to Origins is also used in the governance of the sub-protocol, enabling users to decide which projects are worthy of being launched on the platform as a way of avoiding scams. The OG token is also used in the governance of Origins’ treasury, where users can direct where community funds are spent. Finally, users can avoid gas wars during token sales by using their OG tokens as a queuing mechanism.
SOV Meets BTC
The launch of Origins on Sovryn has been designed to work hand-in-hand with the holders of the base blockchain’s SOV token, and to further enrich its users. The use of a bonding curve aims to link the future prospects of the OG and SOV tokens by ensuring that demand for the former translates into demand for the latter. Stakers of the SOV token also gain veto powers over aspects of Origins’ governance and will be able to collect a portion of the revenue gained from transactions in the bonding curve. SOV will be used in the B round, as well as the public token sale.
Several projects have already made use of the Sovryn Origins protocol to successfully raise funds using Bitcoin. BabelFish, a multi-chain stablecoin aggregator, raised $5.8 million via Sovryn Origins in August 2021, with the 45.7298 BTC token sale selling out in just 30 minutes. The Sovryn Genesis token sale was conducted in January of the same year, raising 56.17 BTC in just 27 minutes.
Bringing DeFi to Bitcoin holders was an inevitability given the explosion of various defi dApps on other platforms. Sovryn Origins looks to complement the main protocol of the Sovryn blockchain by acting as a decentralized fundraising tool that projects can utilize to raise BTC for their blossoming visions. No longer does defi have to remain the plaything of Bitcoin’s many blockchain successors.