Sovryn, a bitcoin-based decentralised finance (DeFi) protocol, has agreed a USD9 million investment from a consortium of partners, vetted for their strategic contribution and led by Anthony Pompliano’s Pomp Investments, after a proposal was formally accepted by the Sovryn community.
Tuesday 13 April also sees the first day of Sovryn (SOV) trading, exclusively on the Sovryn platform, before it becomes available on other exchanges.
Of the groups that applied to invest, those which were vetted and accepted include representation by leading exchanges such as Cadenza (a BitMEX affiliated venture fund) and AscendEX (BitMax) and Gate.io as well as blockchain miner Blockware Solutions. These market players will bring their reputations and deep balance sheets to bear on the corporate aspects of the Sovryn project and will in time look to build software to adopt and integrate with the Sovryn protocol. Secretive DeFi whale investor 0x_b1i is part of the consortium, as is institutional markets maker Consolidated Trading, which will help pass the benefits of DeFi to the world of traditional finance, among others.
Pomp Investments sees decentralisation and security as the most significant factors in the Bitcoin trading environment and that ultimately that’s what gives sovereignty to the individual users and holders. Their consortium’s investment perspective is that this trend will continue and the market will continue to place a premium on sovereignty and decentralisation, and reward those who can build infrastructure to kind of support and accelerate that ethos. The progress Sovryn has made in developing a solution for decentralised finance for Bitcoin impressed the investment consortium, prompting it to make an unsolicited investment proposal.
Bitcoin is not only the most secure blockchain, it is also the most scalable, because it is focused on fundamentals and is extremely simple, designed to do only one thing – to secure Bitcoin transactions. Sovryn extends the functionality of Bitcoin; it uses the same proof of work, is mined and secured by Bitcoin and the transactions that occur on the sovereign system are paid in Bitcoin fees to Bitcoin miners so it extends that security. The way that the Bitcoin world scales is by adding additional layers of technology on to Bitcoin’s simple, basic blockchain. This contrasts with the Ethereum network where modifications are made to its base layer, which increase its complexity and with it cost.
Pompliano says: “I’ve been impressed by the Sovryn project and the progress they’ve made in bringing DeFi to Bitcoin and ensuring the continued sovereignty of Bitcoin. We’re seeing increasing numbers of active, decentralised communities, like Sovryn making decisions about some investments rather than the traditional, centralised decision process. I’m delighted our proposal has been accepted and to be joining the Sovryn community.”
Sovryn Co-Founder Edan Yago says: “The Sovryn community takes decentralisation seriously, as the only defence against financial censorship. This is not a project invoking kabuki theatre decentralisation, while having a single company behind the project. Sovryn is a public good, controlled by no one entity and managed by a growing, global community of contributors. It’s great to have Pomp and so many others join our mission to bring transparent, incorruptible financial tools to the world.”