L2 Update: 105 Bitcoiners living on their stash with Zero Interest Loans (While Controlling the Keys)

Sovryn (Bitcoin DeFi protocol) on Rootstock sidechain launched its Zero-interest loan product, and as of today has 571.17 BTC put up as collateral by people taking out loans to use for their day-to-day activities. Yes, pay bills, travel, etc without having to sell BTC or give out control to a third party.

Up-to-date stats here

https://preview.redd.it/ckl06rzomnoc1.png?1080&format=png&auto=webp&s=3efbf8ba292e403747924e6692103dae93b54a88

Origination fee set at 8% via Bitocracy vote to slow down uptake of the loans as too many borrowers were draining stablecoin liquidity and triggering redemptions (liquidity still comparatively low for the young protocol). This has since normalized, and lines of credit slowly increasing at par with stables in the system.

For Comparison, interest charged on CEXes:

• Coinbase advertises a 'low APR of 8.7%'
• Binance flexible USDT can even reach an annualized rate of around 29%

1 ZUSD always redeemable for 1 USD worth of Bitcoin Holdings transparent and auditable on the blockchain. Fees set by decentralized Bitocracy vote. And Hodlers keep control of their keys.

DefiLama tracking Bitcoin sidechains currently has Rootstock as the largest based on TVL, closely followed by Stacks.

The ecosystem is evolving. We don't know what the future will be. But the fact that there are actual products enabling real world usage of Bitcoin without giving up control of the keys (or waiting some 30 years to 'sell some and live off the rest') is exciting!

As always, this is not financial advice. DYOR before using any of the products.

And for those who want to dig deeper into the statistics of the Zero protocol (total collateral ratio, lines of credit, redemptions, LoC changes, etc.), here you go

Bitcoin gifted the world absolute digital property rights. Great to see solutions that enable hodlers to use this within their lifetime without giving up their sats or sovereignty.