Bridging Bitcoin and DeFi – RSK Community Reaches 1,400 BTC Locked Following the Launch of Sovryn

| Peter Wind

Key highlights:

  • There’s now over 1,400 BTC locked on RSK Community
  • RSK Community is a brilliant contracts platform that is merge mined with Bitcoin
  • The current launch of decentralized buying and selling and lending platform Sovryn has offered a lift for RSK Community

DeFi on Bitcoin venture RSK Community reaches over 1,400 BTC locked

Decentralized finance (DeFi) is rising past Ethereum, and one beneficiary of this pattern has been RSK Community, a wise contracts platform that leverages the safety of the Bitcoin blockchain. Per the block explorer, there’s now 1,493 RBTC on the RSK Community, representing the equal quantity of BTC ($86.3 million in USD phrases). 

There’s now extra BTC locked in RSK Community than in Lightning Community, the favored layer 2 answer which makes sending BTC a lot sooner and cheaper. RSK Community now additionally has greater than 50,000 lively accounts and a web hashrate of 99 EHs.

Customers can carry their BTC to the RSK Community via a two-way peg system the place BTC is locked on the Bitcoin community and an equal quantity of Sensible Bitcoin is concurrently unlocked on the RSK Community. 

RSK Community derives its safety from being merged mined with Bitcoin – miners can use the identical {hardware} they’re already utilizing to mine Bitcoin to concurrently additionally assist safe the RSK community and earn rewards. Along with bringing the facility of good contracts to BTC holders, RSK additionally affords a scalability enhance, as it could deal with round 100 transactions per second whereas remaining strongly decentralized.

The launch of Sovryn is offering a tailwind for RSK Community

The current progress of the RSK Community has been catalyzed by the launch of Sovryn, a decentralized protocol the place customers can commerce Bitcoin with leverage, or earn an earnings by lending and offering liquidity. Merchants can go lengthy or quick on Bitcoin with as much as 5x leverage, or carry out easy swaps between BTC and different property just like the Greenback on Chain stablecoin.

Buying and selling on the RSK-based Sovryn went reside on April 13 and the venture has acquired backing from influential crypto neighborhood member Anthony Pompliano, whose fund Pomp Investments led a $9 million funding into Sovryn from a consortium of buyers.

Edan Yago, the co-founder of Sovryn, commented on the significance of layer 2 options to broaden the attain of Bitcoin:

“Bitcoin is the middle of gravity for your entire crypto economic system. Layer 2 improvements will solely enhance its attain. When individuals consider Bitcoin Layer 2, most consider Lightning Community. Sidechains are a strong complement to Lightning and are gaining outstanding consumer traction.”

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