In early October, a financing study conducted by the General Catalyst investment trust was conducted. This funding campaign, led by General Catalyst, raised $5.4 million for Sovryn.
Who are the Sovryn Investors?
Other groups participating in the financing study and making investments can be listed as follows:
- Collider Ventures
- Bering Waters
- Bollinger Investment Group
- Balaji Srinivasan
This financing took place just before the last “Zero” move made by the platform. Earlier, it was announced that a “public project” was being developed by Sovryn, but details about the issue were not shared. The financing support and the Zero project made by Sovryn attracted the attention of investors far from the traditional, DeFi and Bitcoin world. Therefore, in the next financing organizations, it is expected that companies that have not previously been involved in the NFT sector will also be among the investors.
What is General Catalyst?
General Catalyst is a multi-partner organization with offices in many parts of the world and investments in more than one place. In other words, it is venture capital. For example, Stripe, which is used as a PayPal substitute for YouTube and in many parts of the world in the business field, was established with the investment of General Catalyst. Stripe, on the other hand, is located in the pay systems of the most money-streaming centres of the Internet world such as Youtube and Twitch.
People tend to take out loans according to their needs in their normal lives. This trend varies according to the needs of people. Sovryn is also launching a DeFi and Bitcoin research that could be like a bank loan.
As a result of the research carried out, Sovryn company wanted to make a move that would allow its users to withdraw credit through coins as well. This move is called “Zero”. In short, Sovryn: Zero project is an innovative and user-oriented project that allows people to withdraw loans with 0% interest by showing their bitcoin wallets as collateral.
On the other hand, ZUSD loans can be obtained using bitcoin via Zero. However, the bitcoin collateral rate to be made must be a minimum of 110% of the loan to be withdrawn. Thus, the system provides its own security within itself. The internal collateral pool operates within the collateralized RBTCs. As a result, transparency is provided regarding collateral.
Zero cannot be controlled by any system and it is impossible to be censored. To summarize the system again; the common pool formed by both bitcoin investors’ coins and people who want to provide liquidity by taking loans over USD is the collateral pool of the Zero project. With the money here, loans are distributed, and changes in the market also prevent people who take out loans from paying interest.
The Transition from Crawling to Walking
Each country has a special currency. The currency of Sovryn, which is managed jointly by many investors and the community, is bitcoin. The company provides all its projects or investments it receives through bitcoin. The most important feature of Sovryn is that it is autonomous. This ensures that Sovryn does not depend on any government or company in their work.
Although Sovryn is one of the important companies of the DeFi and Bitcoin world, they are trying to move from the infancy stage to the walking stage with the 5.4 million dollars financial increase it received. Sovryn, which was established in 2021, has achieved very fast and great growth within itself.