| SIP | Title | Author | Status | Track | Created |
|---|---|---|---|---|---|
0078 |
Proposal for Sovryn to Launch on BOB Chain |
Alexei Zamyatin (@alexeiZamyatin) |
Approved |
Other |
2024-03-08 |
This SIP proposes the integration of Sovryn, the leading Bitcoin DeFi project, onto the BOB (Build on Bitcoin) chain, a new hybrid L2 between Bitcoin and Ethereum. By leveraging the Ethereum ecosystem’s rich functionalities and bringing Sovryn’s best-in-class Bitcoin DeFi suite to a larger market, this collaboration aims to catalyze a significant migration of users and capital from Ethereum and the wider crypto economy back to Bitcoin, capturing a massive market opportunity.
The partnership between Sovryn and BOB will serve as the conduit for this movement, providing users with enhanced UI, functionality, and rewards, while simultaneously expanding Bitcoin’s reach within the DeFi space.
Sovryn has established itself as a pioneering force in the realm of Bitcoin DeFi, offering users a comprehensive suite of decentralized financial services tailored specifically for Bitcoin holders. However, to further extend Sovryn’s reach and solidify its position as the premier Bitcoin DeFi project, it is imperative to integrate with platforms that can facilitate seamless interaction with the broader crypto ecosystem. BOB is the first Bitcoin L2 with full EVM compatibility & native Bitcoin support empowering everyone to build and innovate on Bitcoin. The BOB chain presents an ideal opportunity in this regard, offering a Bitcoin-centric environment while leveraging Ethereum’s extensive toolkit for enhanced functionality.
BOB ("Build on Bitcoin") is a first-of-its kind hybrid L2 network that connects Bitcoin and Ethereum. BOB empowers everyone to build and innovate on Bitcoin today by combining EVM smart contracts with tooling for Bitcoin-native protocols and assets such as Ordinals. Merging the security of Ethereum rollup technology with Bitcoin’s Proof-of-Work makes BOB the most secure and reliable layer 2 network. Through trust-minimized bridges to both Ethereum and Bitcoin, BOB efficiently funnels liquidity from the two leading web3 economies.
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Expansion of Market Reach: Integrating Sovryn onto the BOB chain will enable access to Ethereum’s vast user base of over 1 million active users, representing a largely untapped market for Bitcoin DeFi services. This expansion of market reach presents a substantial economic opportunity for Sovryn to capture a significant portion of the rapidly growing Bitcoin DeFi market, projected to reach $100 billion.
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Enhanced UI and Functionality: By tapping into Ethereum’s rich ecosystem, Sovryn can leverage advanced UI/UX designs and incorporate innovative functionalities to enhance user experience.
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Strengthened Leadership Position: Establishing Sovryn on BOB reinforces its status as the leading Bitcoin DeFi project, further solidifying its position within the DeFi landscape.
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Strategic Partnership: Sovryn’s collaboration with BOB signifies a commitment to fostering interoperability within the Bitcoin and Ethereum ecosystems, paving the way for future synergistic developments.
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Massive User Acquisition: Integrating Sovryn onto BOB brings a substantial influx of Ethereum users into the Bitcoin ecosystem, contributing to the growth of Bitcoin’s user base.
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Increased Utility for Bitcoin: By providing Ethereum users with access to Bitcoin DeFi through Sovryn on BOB, Bitcoin’s utility is expanded, offering more opportunities for users to utilize their Bitcoin holdings in DeFi applications.
The technical integration of Sovryn onto the BOB chain will involve adapting Sovryn’s smart contracts and interfaces to seamlessly interact with the BOB chain’s infrastructure. This will require collaboration between the development teams of Sovryn and BOB to ensure compatibility and smooth operation. BOB’s fully EVM-compatible programming layer (OP stack) thereby enables a smooth transition.
As part of the partnership agreement, BOB commits to supporting Sovryn, as an early adopter of BOB, with user acquisition achieved by, including but not limited to, future ecosystem growth and incentive programs.
The integration of Sovryn onto the BOB chain marks the beginning of a transformative journey for Bitcoin DeFi. Being the first to market with this groundbreaking integration, Sovryn and BOB are poised to capture a significant portion of the multi-billion dollar DeFi market, positioning themselves as the leaders in facilitating the migration of users and capital back to Bitcoin.
By leveraging Ethereum’s expansive ecosystem and tapping into a vast pool of Ethereum users, Sovryn and BOB will spearhead a significant migration of users and capital from Ethereum and the wider crypto economy back to Bitcoin. Together, Sovryn and BOB will serve as the conduit for this movement, ushering in a new era of interoperability and collaboration between the Bitcoin and Ethereum ecosystems.
Copyright and related rights waived via CC0.