Introducing Sonce — Bridging real-world assets to DeFi

What is Sonce? Let’s deep dive into RiveX’s new venture in DeFi!

Where’s that ICO you bought into two years ago? How’s it doing? Has the value plunged to just one Satoshi on CoinGecko? Has it “gone to the moon” and is now worth 10 times more than the ICO price?

HODLing is perhaps one of the grandfather cultures of DeFi. It was a cocktail of patience, luck, and a little bit of financial know-how. As the DeFi space expanded rapidly, HODLing has become a rather archaic technique. Better methods like staking and liquidity yield farming promised faster returns, sometimes even with less risk.

When HODLing was all the hype, traders would lookout for projects with a promise to see the potential for them to shoot up in value, sometimes investing large amounts of their crypto into token offerings with the hope of reaping the returns when the price is right. This, however, led to many bogus projects that never succeeded because many wanted a share of the DeFi pie as it was back then but only a few succeeded in getting it. Pumps-and-dumps, scam projects, and exit strategies polluted the world of the ICO. Some groups turned to doing airdrops — distributing their tokens for free in order to boost the adoption and reception of their project, only to fail in the same way.

The next big DeFi craze turns out to be NFTs — digitizing what's left of the real world.

RiveX’s new venture in DeFi, named Sonce, will be powered by non-fungible tokens (NFTs). This system will create an NFT minting platform that aims to be truly decentralized, allowing users to mint NFTs based on real-world assets.

NFTs minted on this platform will reflect digitized real-world assets. This can be a selection of commodities, properties (real estate), artwork and financial derivatives amongst other groups of assets. Sonce’s NFT Minting System will break the barrier which separates digital assets and real-world assets by giving digital assets real ownership and value.

Crypto enthusiasts these days are familiar with the concept of depositing their digital assets as collateral and borrowing against them to generate stable coins. This allows them to put their crypto portfolio to use rather than letting it sit dormant, but it doesn’t have to stop there. Sonce will allow you to mint NFTs based on your own real-world assets, digitizing these assets to be used as on-chain collateral.

The NFT market is currently focused on mainly art collectors and gamers, but this is just the start. Sonce takes this one step further by digitizing any real-world assets, minting NFTs based on just about anything with value.

Not every desired asset is tokenized. Sure, we have pegged tokens like ZrCoin and USDT that connect some real-world or fiat currencies and assets to crypto counterparts but this is not always the best option. Pegging tokens always require consistent minting and burning to keep the balance just right.

What if there were a way to bridge the world of DeFi with other real-world assets and commodities?

The NFTs on Sonce will not just be all-crypto. After all, despite being around for over a decade, the DeFi world is still in its infancy. There will also be NFTs that utilize oracles to extend their functionality to allow interested stakeholders to extend their investments to real-world financial assets such as gold and oil.

Oracles are a godsend for the DeFi space since they connect the world as we know it and the realm of DeFi in ways we are yet to imagine. From gambling to insurance, they provide for an interaction point where smart contracts can work with external input. With further implementation, NFTs on Sonce can open the doors to investment in indices such as the S&P 500, FTSE 100 and Nasdaq.

A diversified portfolio is often regarded as a healthy one as not all your eggs are in one basket. A diversified risk is a good risk though it may not reap the rewards one would often read about in mega-success stories or Hollywood films.

When investing in these NFTs on Sonce, the investment will be naturally diversified — meaning even holding just one of these NFTs is a diversified investment in itself. Investing in more of them further compounds this diversification.

With healthy trading on the table, there could be a better, long-term feasibility for calmer, day-to-day investments in the DeFi space. What was once a scary, unforgiving battlefield of volatility can now be a landscape where investors can be able to comprehend and more readily forecast their investments rather than putting their faith completely on the rollercoaster that is the BTC price graph.

About RiveX Foundation

RiveX is a chain agnostic interoperable layer-2 solution across different blockchain protocols. RiveX aims to empower the next generation of decentralized applications, decentralized finance and enterprise solutions. RiveX has comprehensive interoperable DeFi solutions such as RX Wallet which aims to integrate DAPPS from different blockchain protocols to enable an interoperable DeFi ecosystem within RX Wallet itself.

👇 More about RiveX 👇

RX Wallet | WRDEX | Website | Twitter | Telegram | Medium | GitHub

Interoperable and Scalable Layer-2 Solutions