## Sovryn Introduces ‘Zero’: A Zero-Interest, Bitcoin-Backed Stablecoin Protocol
Community Call #36 was dedicated to the formal introduction of **Zero**, Sovryn’s highly anticipated stablecoin protocol. Zero allows users to take out zero-interest loans against their Bitcoin collateral, minting a USD-pegged stablecoin called Sovryn Dollar (DLLR). This new primitive is designed to unlock liquidity for Bitcoin holders without requiring them to sell their assets.
### Why Zero?
The goal of Zero is to provide the most capital-efficient and censorship-resistant way to borrow against your BTC. Unlike other platforms, Zero charges no interest and has a low minimum collateral ratio of just 110%. This allows users to maximize the liquidity they can access from their Bitcoin holdings.
### How Does it Work?
1. **Open a ‘Trove’:** A user deposits BTC into a smart contract called a Trove.
2. **Borrow DLLR:** The user can then borrow Sovryn Dollars (DLLR) against their BTC collateral.
3. **Maintain Collateral Ratio:** Users must keep their collateral ratio above 110% to avoid liquidation. The system is designed to be self-healing, with mechanisms to maintain the DLLR peg to the US dollar.
### The Stability Pool and Liquidations
To ensure the protocol remains solvent, Zero utilizes a **Stability Pool**. Users can deposit their minted DLLR into this pool to earn rewards. When a Trove falls below the 110% collateral ratio, its BTC debt is canceled out by burning DLLR from the Stability Pool, and the BTC collateral is then distributed to the depositors in the pool. This makes Stability Pool depositors the liquidators of last resort, who are rewarded for providing this crucial service to the protocol.
### What’s Next?
Zero is set to launch in a private beta on mainnet soon, followed by a full public release. It represents a cornerstone of the Sovryn ecosystem, providing a powerful new tool for Bitcoin holders and creating a native stablecoin to fuel the platform’s other DeFi primitives.