Just a crazy idea but since Sovryn is focused on finance and bitcoin. Maybe Sovryn could enable trading of El Salvador $500 million “Volcano Bitcoin Bond” on the platform. Not only would sovryn token holders benefit from trading fees but we would help El Salvador become a Sovryn bitcoin nation by helping build its Bitcoin City and Bitcoin mining infrastructure. Considering the fiat bond markets are worth trillions of dollars, I can only imagine the volcano bitcoin bond will be even more lucrative for bond traders considering there will be two halvings from now til bond end date.
The centralised exchange Bitfinex and blockstreams sidechain network Liquid are working together to enable trading of the volcano bitcoin bond on Bitfinex. Sovryn could be the place to trade the volcano bitcoin bond on a decentralised exchange on RSK ecosystem.
According to Blocksteams Samson Mow says small investors will be able to buy the bond with minimum trades of $100. Sovryn could maybe contact blockstream to see if they can reserve some bonds for sovryn DEX. The bond is 10 years long with 6% yield in bitcoin.
Traders could use the Bond as collateral to trade on sovryn. Or users could treat the bond as stablecoin backed by bitcoin that earns bitcoin dividends.
There is many things you can do with this bond in DeFi. So many possibilities!!! @yago@light love to hear your thoughts?
This would require building a bridge with Liquid, and also assumes that the token will be freely transferable on Liquid (I don’t know if this is the case or if transfers will be restricted to whitelisted addresses for KYC/AML reasons). Assuming no such transfer restrictions on the token, building such a bridge is approximately as difficult as building a bridge with bitcoin itself, since Liquid is based on the Bitcoin Core codebase. The difficulty and complexity would depend on the exact implementation of the bridge, whether it is a Powpeg like the existing RSK bridge to bitcoin or whether it uses a simpler federated multisig like the Sovryn Ethereum + BSC bridge.
I guess it would probably require KYC and assumed it would be very complex to bridge the bond from bitfinex. As I said it was a crazy idea likely not feasible. But I do think if there was a way to do it without KYC and bridge the bond, i imagine the bond would be very popular on sovryn DEX and also attract users. I understand theres much more important developments for sovryn protocol at the moment and core devs are very busy with current priorities. Thanks for your response.
I believe Samson Mow said very likely the bond would be listed on other exchanges if there was demand for it.
Would it make sense to inquire if they have any interest in helping build such a bridge? A bridge between RSK and Liquid would anyway be nice to have, also for them, and perhaps they have an interest in ensuring diverse kinds of access to the bonds?
I have heard speculation, but not yet confirmation, that the bond will be issued as a “Transfer-Restricted Asset” using Blockstream AMP, meaning that ownership would be restricted to users who meet certain criteria (such as KYC). This would be similar to how the Blockstream Mining Note works. If this is how the volcano bond works then I don’t see a Liquid bridge being a very high priority since I can’t think of other freely transferable assets we need to bring over from Liquid. That said, in general I think long term having a bridge or atomic swap connections between Liquid and RSK would make sense so we can start better connecting the bitcoin sidechain ecosystem.