Sovryn will allow you to trade a large number of pairs, centered around RBTC, SOV, and USD stablecoins. The number of assets will continue to increase.
No, there is not an orderbook. Sovryn uses an automated market maker (AMM) that automatically adjusts prices in accordance with supply and demand.
Margin trading has two unique features: trading with leverage and shorting. In trading with leverage, a trader borrows assets to increase the amount of assets being traded. By doing so, the gains or losses of the trade are magnified. 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 the option to short. In shorting, a trader essentially sells borrowed assets. The short investor borrows an asset and sells it on the expectation that the assets will lose value. The short position is closed when the trader buys back the asset to repay the loan. The drop (or gain) in the asset value is the profit (or loss). If the trader's expectation is correct and the asset drops in value, the trade results in a profit. However, if the price of the asset increases, the trader must buy back the asset at a higher price and realize a loss.
Sovryn currently allows up to 5x leveraged trades, but this may be increased in the future.
If your margin slips below 15% your position will be partially liquidated. Users can request a notification to receive a margin call when they approach the margin maintenance threshold of 15%.
Since Sovryn is built on RSK (a Bitcoin sidechain), it benefits from lower block times averaging 30 seconds compared to the Bitcoin average block time of 10 minutes.
You can place a limit order on spot trades but not margin trades at present. Sovryn uses an Automated Market Maker (AMM) to allow trading, similar to Uniswap.
Sovryn currently uses an oracle called Money-on-Chain along with an aggregate of multiple exchanges to tether the price to the market price of Bitcoin. Soon Chainlink will also be used as an oracle.
Different type of transactions—trading, swapping, borrowing or lending assets—have different fees.
The Sovryn protocol collects a fee on each trade that is performed. This fee is currently set at 0.25% on each position opening, but there is no fee on closing.
Liquidity Providers can provide liquidity to the Sovryn Swap AMMs. For some AMM pools, LPs 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 rather than setting the price based on the balance of assets in the pool. This significantly reduces the possibility of impermanent loss. Sovryn Swap collects a fee on each side of the swap, which is distributed to the LPs. Currently this fee is set at 0.1%
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.
Below is a summary of fees. Or use the following link for a more detailed overview of the Fees on Sovryn.
|Collected by Sovryn||Collected by Lenders||Collected by LPs|
The FastBTC relay is constructed by Sovryn. It allows users to bridge their Bitcoin seamlessly from any Bitcoin wallet. This system will continue to improve as the technology matures and is optimized. One of the greatest challenges in extending Bitcoin's capabilities has been the difficulty in bridging Bitcoin trustlessly to other chains or layer-2 systems. The FastBTC relay solves this issue. It is a service to rapidly convert your BTC into the native RSK coin RBTC.
You can read more about the FastBTC relay here.
For FastBTC in or out, Sovryn platform collects a fee of 5000 sats + 0.2%. All these fees are paid to the transaction validators.
Sovryn requires at least one confirmation for all transactions. For very large transactions, Sovryn requires more confirmations on a risk-adjusted basis. Only the very largest transactions require more than 3 confirmations. FastBTC out takes 12.5 minutes (25 RSK blocks), which is roughly the time of a single Bitcoin block.
The FastBTC relay is partially decentralized right now. Currently, FastBTC uses five nodes, three of which must sign to validate a transaction. Efforts are ongoing to decentralize the service further. We will eventually be linking it with Lightning Network so that transfers can happen instantaneously.
Yes, you can Peg-Out quickly using our FastBTC relay which will take 25 RSK blocks equals approximately 12.5 minutes, or roughly the time of a single Bitcoin block. There is a minimum limit of 0.0004 RBTC and a maximum limit of 0.1 RBTC. You can also explore alternative methods for RBTC Peg-Out.
Don't panic! You haven't lost money. Your lending screen will show you two different currencies or tokens—"iTokens" and "Underlying Tokens". Underlying tokens are the form in which your funds are sent to a liquidity pool as a lender. iTokens are what you receive in exchange as proof of loan. The "i" in iToken stands for interest that you will earn as a lender; it is a token representing the share you have in the pool. So if you have 1.0 i-RBTC and there are 10 RBTC in the pool, it means you own 1.0 RBTC. If the pool accumulates interest and now contains 10.1 RBTC, your 1.0 i-RBTC are now worth 1.01 RBTC. If now somebody else lends another 1.0 RBTC, he does not receive 1.0 i-RBTC but approximately 0.99 i-RBTC, because the value in the pool is bigger than the sum of all the deposits.
When you want to close a position, you have the option to close it partially. You will have the option to specify how much of that position you aim to close. The position is denominated in dollars for that reason.
Rewards earned for providing liquidity to a pool with a bonus will be distributed after the reward event has ended. Typically it can take a day or two before the rewards are distributed. Distributed rewards can be found in your Sovryn wallet/portfolio within the “Vested Assets” tab.
See below for details on the reward vesting period.
Sending tokens to exchange deposit addresses is not advised when sending native tokens (BNB on BSC network or ETH on ETH network) because this is processed via an ‘internal transaction’, which is not recognized by many exchanges and will therefore result in funds not being credited to your account.
Sending stablecoins to an exchange deposit address is appropriate as this will send a transaction with a value to the amount of the stablecoins being sent, as opposed to an internal transaction. Therefore, sending non-native tokens to exchange deposit addresses is acceptable.
The MetaMask wallet is by default using the Ethereum gas settings instead of the RSK gas settings. Gas price on RSK is currently 60.000.000 RSK Weis, or 0.06 GWei, while in the Ethereum network it is oscillating strongly between 20 Gwei and 200 Gwei or more. Let's bring it back to the basics and use a car trip as example. You need to fuel the car to drive, but you only have 10 liters of fuel, that would be your limit of total consumption (gas limit). Also, you looked for a specific price for that fuel (gas price). If you reach your destination earlier than reaching an empty tank, you only spend a partial amount of fuel (gas used). A transaction fee is based on gas price x gas used up to success or the gas limit. Let’s suppose that a transaction in Sovryn is around 1.800.000 units of gas. If by any chance the gas price is allowed to be set to 200 Gwei, it means that the transaction fee will be set to 0.36 RBTC, which is worth of 0.36 BTC or in other words, more than $5.000 in transaction fees. Such a transaction shouldn't be, by the time this guide is written, more expensive than 10.800 sats, or a couple of dollars, in the worst case.
In order to avoid this situation, it is recommended to set the MetaMask wallet to “Advanced gas controls” so you as a user will be always asked for the gas price adjustment. This allows you the chance to check and verify the correct settings. Please see below for the 4 easy steps to adjust your gas settings.
Step 1: When you are logged into your MetaMask, open the settings window by clicking on the account symbol in the top right corner.
Step 2: Now a new window pops up. Click on “Advanced”.
Step 3: Scroll down until you see the “Advanced gas controls” section. Here you want to make sure that the toggle switch is set to "ON".
Step 4: Every time when you prepare a transaction on your MetaMask, the window of confirmation should appear. This window allows you to set your preferred Gas Price and Gas Limit. At the time of writing this guide, on the RSK network, the Gas Price should be around 0.06 Gwei for a proper transaction price and experience.
You can use this tool to help estimate gas fees: https://rskgasstation.info/