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Here are some quick solutions.
- A non-custodial and permission-less smart contract-based system for bitcoin lending, borrowing, and margin trading built on the RSK platform.
- A DeFi platform for Bitcoin.
Sovryn's FastBTC Relay is a service to provide quick and simple BTC/RBTC conversions directly within the SOVRYN dapp. FastBTC allows the bi-directional exchange between BTC and RBTC. The FastBTC Relay is not fully decentralized.
Read more information in: https://wiki.sovryn.app/en/sovryn-dapp/fast_btc
FastBTC transactions have the following limits:
Min: 0.0004 BTC
Max: 3 BTC
Fees: 5k satoshis + 0.2%
Min: 0.0004 BTC
Max: 0.05 BTC
Fees: 5k satoshis + 0.2%
The exchange process on RSK is comprised of the following:
- 10 RSK blocks for confirmation.
- A waiting period of 5 RSK blocks for batching.
- 10 RSK block period for Sovryn smart contract state update.
You will need to set up a Web3 or Mobile wallet that is compatible with the RSK chain.
For Web3 wallets, suggested are Nifty, Liquality, or Metamask. They work as an extension in Google Chrome. Remember that you should save both your password and the 12 recovery words and never share them with anyone.
For Mobile wallets, suggested are Defiant and D’Cent. Just get the chosen one from the store of your smartphone, install it and set it up paying special attention to the seed phrase which you should handwrite on paper and store it in a safe place. Then you can connect your wallet using WalletConnect, which is an open protocol for connecting Dapps to mobile Wallets using end-to-end encryption by scanning a QR code.
No, there is not an orderbook. Sovryn uses an automated market maker (AMM) that automatically adjusts fees in accordance with supply and demand.
Margin trading has two main aspects: trading with leverage and shorting. In trading with leverage, a trader borrows assets to increase the amount of assets they are trading. By doing so, they magnify the gains or losses of their trade. The borrowed assets are known as a margin loan. To obtain the margin loan, the trader puts up assets that serve as collateral. The terms of the margin loan specify a collateral-to-loan ratio. If the trade falls below the specified ratio, the trade is liquidated and the lender is made whole using the trader’s collateral.
Margin trading also includes shorting. In shorting, a trader essentially sells assets they do not own. The short investor borrows an asset and sells it on the expectation that the assets will lose value. When the trader's expectation was correct and the asset did drop in value the short can be closed. At that moment the trader buys back the asset to repay the loan and the surplus is profit. However, if the price of the asset did increase, the trader will have to buy back the asset at a higher price which would create a loss.
Sovryn allows for up to 5x leveraged trades at this moment, but this will be increased in the future.
If your margin slips below 15% your position will be partially liquidated. A system is being implemented so that users can receive a margin call when they approach the margin maintenance threshold of 15%.
There are different types of fees depending on your interactions with the Sovryn Dapp. You could be trading, swapping, borrowing or lending assets.Trading fees
The Sovryn protocol collects a fee on each trade that is performed. This fee is currently set at 0.15% on each position opening, but there is no fee on closing.Swap fees
Liquidity Providers can provide liquidity to the Sovryn Swap AMM. Unlike most other AMM’s, such as Uniswap, LP’s are not required to deposit both assets into a pool, they can add only one or both if they prefer. Sovryn Swap uses oracles to rebase the ratio between tokens, eliminating most of the possibility for impermanent loss. Sovryn Swap collects a fee on each side of the swap, which is distributed to the LP’s. Currently this fee is set at 0.1%.Borrowing, Lending and Liquidity Pool fees
The interest rate paid by borrowers to lenders is set dynamically based on supply and demand - the ratio of supply to loans. The Sovryn protocol collects an origination fee on every loan, currently set at 0.09%.
If you lend money to a liquidity pool, there is a small withdrawal fee of 0.1% on top of the gained interest, but not in the moment you lend, only in the moment you withdraw. Therefore, you don’t pay a fee for lending your money. You share a portion of what you’ve earned. Interest payments made by borrowers are distributed to lenders.