RSK TVL Overtakes that of Lightning Network as Interest in DeFi on Bitcoin Rises
Bitcoin-powered smart contracts platform RSK Network has eclipsed Lightning Network (LN) in terms of total value locked (TVL) in BTC having over 1,445 bitcoins locked, a recent announcement reads.
Strong Demand for DeFi on Bitcoin
In yet another major milestone for the RSK community, the secure, decentralized, Bitcoin-based smart contract platform RSK Network announced that more than 1,445 BTC was locked in the protocol which pushes it ahead of the Lightning Network.
This mean feat is a testimony to the rapidly growing demand for DeFi on Bitcoin among users.
Notably, RSK smart contracts platform had more than 259,000 transactions, 50,000 active accounts and reached an all-time high of 72 percent hashing power during April 2021. It is worthy of note that in the past few months, the number of solutions and integrations in the budding RSK DeFi ecosystem has surged exponentially.
The aforementioned milestones hold immense significance for the RIF (RSK Infrastructure Framework) economy as it is largely based on Bitcoin and RSK.
For the uninitiated, RIF is a suite of open and decentralized infrastructure protocols that enables faster, easier, and scalable development of decentralized applications within a unified environment. The growth in the RIF economy can be majorly attributed to the surge of BTC locked on RSK.
Sovryn Pushes DeFi Adoption on RSK
Sovryn, a Bitcoin-based decentralized trading, and lending platform backed by Anthony “Pomp” Pompliano has been one of the driving forces responsible for the rise of user interest and TVL on RSK.
Notably, Sovryn commenced trading on April 13, and on the same day, Sovryn agreed to a $9 million investment from a consortium of partners.
It should be recalled that Sovryn is built on top of the RSK Network and provides native and noncustodial trading and lending of BTC. Through Sovryn, users can easily long or short with up to 5 times leverage and allow the holders of BTC, USDT, and the Dollar on Chain (DOC) stablecoin to collect healthy interest by lending their digital assets.
Further, Sovryn users can also leverage the app’s low-cost, low slippage swaps between BTC, USDT, and DOC via the Sovryn decentralized exchange with automated market-makers.
“The launch of Sovryn, which provides native and noncustodial trading and lending of BTC, represents a major step forward for DeFi projects built on the Bitcoin blockchain. It has driven amazing growth on the RSK blockchain. We are very excited about the future of the platform which has proven to fulfill a need in the Defi space.”
Sovryn Co-Founder Edan Yago had similar sentiments. He commented:
“Bitcoin is the center of gravity for the entire crypto economy. Layer 2 innovations will only increase its reach. When people think of Bitcoin Layer 2, most think of Lightning Network. Sidechains are a powerful complement to Lightning and are gaining remarkable user traction.”