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SIP Title Author Status Track Created
0038
Add Brazilian Real Stablecoin BRZ as Collateral
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2021-11-10

SIP-0038: Add Brazilian Real Stablecoin BRZ as Collateral

Introduction

Transfero Swiss is an international Company born in Brazil and headquartered in Zug, Switzerland, in the heart of the Crypto Valley. Our primary mission is to facilitate and foster the adoption of digital assets, starting with BRZ, a stablecoin pegged to and backed by the Brazilian Real.

Transfero has plans to tokenize Fiat currencies for all latin american countries, first with the BRZ in Brazil, and recently soft launching the ARZ in Argentina, we have big plans to develop latin american stablecoin to stablecoin swaps in all of Defi.

Transfero offers a plethora of financial services to its clients, having almost 500 Million in AUM across client’s managed portfolios, client loans, staking, BRZ backing instruments, etc. we want to position ourselves as the top fintech for cryptocurrencies in latin america.

We believe in the disruption of the financial markets and thus serve users who wish to gain access to this new asset class, providing an exclusive experience for Sovryn individuals and institutions.

The Proposal

We propose the inclusion of BRZ as an asset that can be used as collateral within the Sovryn trading platform. This would allow users to leverage BRZ against RBTC and other assets listed on https://live.sovryn.app, while also allowing lenders to earn interest on their BRZ lent out.

  • Transfero Swiss is willing to bootstrap $700k worth of xUSD and BRZ in the AMM liquidity pool on Sovryn, with $300k worth of BRZ in the lending pool so users can begin borrowing and leverage trading. We and our top clients will provide more liquidity into these pools as our relationship with the Sovryn Bitocracy develops.

  • What we also request is 45,000 amount of $SOV tokens to be distributed as liquidity mining to early BRZ liquidity providers, excluding Transfero, for the first two months of liquidity provision to generate momentum for the pools. These tokens are expected to proceed from the funds managed by the Sovryn Exchequer.

The BRZ Token

The BRZ is the first Brazilian stablecoin in circulation. This will allow Brazilians to directly increase investments in decentralized cryptoasset exchanges, lend and trade a stablecoin pegged to the Real (BRL) on a global scale. Making it possible to send and receive tokens immediately and securely, at a small cost compared to any other alternative. Since inception the BRZ has become the world’s largest non-USD pegged stablecoin, illustrating the sort of demand for such an instrument in Brazil

We have developed our own cross chain bridging technology, allowing our stablecoins to flourish in defi and we would love the first Defi allocation of our token to be with the Sovryn community.

In practice, we can say that the BRZ is a payment system based on an independent token and powered by well-established blockchains, allowing people to keep digital assets backed by government-issued fiat currency, linking these digital tokens to cash equivalent reserves.

The Positioning of Sovryn

Sovryn is uniquely leading in a direction that no other DeFi project is doing - Sovryn is expanding DeFi to real-world jurisdictions and building its smart contract platform on top of the biggest crypto gateway in the world: Bitcoin.

Sovryn has begun collaboration with a state-owned bank in El Salvador - which nationally recognizes Bitcoin as legal tender.

It is highly likely that Brazil will soon follow. This is perfect timing to push Sovryn to become the largest DEX with BRZ liquidity to precede such a potential milestone.

BRZ currently trades at around $15M in daily volume on exchanges such as FTX, Crypto.com, Bittrex, and CoinBene, with more listings planned in the future. We would like to make Sovryn the focus for users who wish to trade BRZ on a permissionless exchange.

Long Term Vision

We do not intend to stop with BRZ. We are also in the process of building our second and a third stablecoin backed by other South American fiat currencies…

Sovryn could potentially become the premier FX DEX, on a Bitcoin-POW secure chain. We could tap into new markets and open doors to other jurisdictions and users who otherwise would not have access to this form of permissionless trading.

We hope to become a valuable liquidity partner and pave the way with the Sovryn trader community.

KYC

We only enforce KYC for sums over 10 thousand BRZ a month (roughly 1800 thousand dollars) on our own app, http://crypto.transfero.com/, and our partners follow their own rules.

Summarized

  • The creation, testing and deployment of a LoanToken contract for BZR token (the BZR token is already on RSK ) on the RSK blockchain to be incorporated within the Sovryn protocol with the help of Sovryn devs.
  • The creation, testing and deployment of a xUSD/BZR AMM pool on the RSK blockchain to be incorporated within the Sovryn Swap Network with the help of Sovryn devs.
  • The supply by the Sovryn's Exchequer a sum of 45,000 $SOV tokens to be granted as Liquidity Mining to early BRZ liquidity providers, excluding Transfero, for the first two months of liquidity provision to generate momentum for the pools.
  • The integration of the afromentioned liquidity mining program in the Sovryn Liquidity Mining protocol, with the help of Sovryn devs.
  • We will provide as bootstrap $700k worth of xUSD and BRZ in the AMM liquidity pool on Sovryn, with $300k worth of BRZ in the lending pool so users can begin borrowing and leverage trading.

License

Copyright and related rights waived via CC0.