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Bitcoin (BTC) currently boasts a market capitalization of $1.96 trillion, solidifying its position as the world’s most valuable cryptocurrency. Yet, much of this BTC remains idle in investors' wallets, held for long-term gains. But what if there were a way to generate yield while HODLing Bitcoin? Enter Solv Protocol — a platform designed to maximize Bitcoin's utility by enabling users to earn staking and decentralized finance (DeFi) yields on their BTC holdings. Let's dive in!
Key Takeaways:
Solv Protocol is an on-chain Bitcoin reserve that gives holders the opportunity to generate yield on their BTC holdings.
As the infrastructure powering Solv, the Staking Abstraction Layer (SAL) presents a unified, easy-to-use interface for Bitcoin holders.
Solv Protocol generates yield for Bitcoin holders through the integration of SolvBTC with DeFi protocols and liquid staking tokens (LSTs).
Founded in October 2020, Solv Protocol serves as an on-chain Bitcoin reserve, offering BTC holders the opportunity to earn yield on their assets through staking. Its Staking Abstraction Layer (SAL) enables users to swap native or wrapped BTC (WBTC) for SolvBTC, which can then be utilized in DeFi applications or staked via liquid staking tokens (LSTs) across multiple chains. By integrating with BTC liquidity solutions, Solv Protocol bridges the gap between Bitcoin and DeFi. The platform currently boasts $2.7 billion in total value locked (TVL), with nearly 26,000 BTC staked and over 590,000 users.
SolvBTC is Solv's universal Bitcoin reserve token. Designed to unlock the full potential of over $1 trillion in BTC assets, SolvBTC ensures price stability with a direct 1:1 peg with Bitcoin.
Users can mint the SolvBTC token by depositing either native Bitcoin or WBTC. Doing so provides them with an asset they can utilize to earn additional yield on their Bitcoin holdings via decentralized applications (DApps) and LSTs.
Through Solv DeFi vaults, you can utilize your Bitcoin in DeFi applications to generate yield and Solv points. Solv Protocol has integrated DeFi protocols from across 12 blockchains, enabling users to execute SolvBTC strategies ranging from lending and liquidity provision to staking and restaking.
SolvBTC LSTs establish the standard for all liquid staking tokens within Solv’s ecosystem. By staking SolvBTC in the form of an LST, you can earn staking rewards on your assets while maintaining liquidity. Since there’s no need to lock up your Bitcoin, you can generate additional yield on SolvBTC LSTs by depositing them to DeFi protocols. These liquid staking tokens can be unstaked at any time to access SolvBTC deposits and cash out staking rewards, and can be transferred seamlessly across multiple blockchains. Examples of SolvBTC LSTs include SolvBTC.BBN, SolvBTC.CORE, SolvBTC.ENA and SolvBTC.JUP.
SAL is the core infrastructure underpinning Solv's ecosystem. As a unified interface for Bitcoin holders, it abstracts BTC staking's complexities across several blockchains. SAL provides users with a range of multichain yield-generating strategies, which they can execute while holding SolvBTC (a liquid representation of their BTC holdings). SAL integrates with different DeFi platforms and ecosystems, simplifying the process for holders who wish to diversify their yield strategies while keeping exposure to Bitcoin.
Solv enables users to participate in DeFi by providing a seamless entry point into staking for Bitcoin holders. This is in great contrast with BTC residing on the Bitcoin mainnet, which lacks native yield-generation properties. As mentioned above, with Solv Protocol users can swap their BTC for SolvBTC to earn staking rewards via SolvBTC LSTs and generate yield via DeFi protocols.
In addition to offering new opportunities for Bitcoin holders to maximize their earnings, Solv's platform also simplifies the BTC staking process and makes it accessible to more users. In addition, Solv is integrated with multiple blockchains — including Bitcoin, Ethereum, BNB Chain, Merlin Chain, Arbitrum, Botanix, Linea, Scroll and Core — unifying liquidity across these chains and enabling users to access cross-chain yield opportunities with minimal effort through SolvBTC.
Solv Protocol maintains a transparent Proof-of-Reserve (PoR) system to ensure SolvBTC's 1:1 peg with BTC. These on-chain reserves can be publicly verified by anyone, with Solv featuring completed security audits from Quantstamp, CertiK, SlowMist, Salus and Secbit.
Solv's ecosystem consists of the following key players.
Investors: To date, Solv Protocol has raised $25 million in total funding from investors like Binance Labs, Blockchain Capital, OKX Ventures, CMT Digital and The Spartan Group.
Auditors: Auditors like Quantstamp, CertiK, SlowMist, Salus and Secbit have reviewed Solv's code, and shared their suggestions with the project to improve the protocol's security.
Blockchains: Solv Protocol is integrated with multiple blockchains (see above) to enable cross-chain yield generation for BTC holders.
DeFi Protocols: In addition to being a multichain protocol, Solv is also integrated with DeFi protocols ranging from PancakeSwap and DODO to Swell Network and Pendle, in order to offer users strategies to generate additional yields on their BTC and SolvBTC LSTs.
Liquid Staking Providers and Yield Sources: Platforms like Babylon, Ethena, GMX and Karak provide opportunities for Solv's users to generate staking yield from Bitcoin via SolvBTC LSTs.
Service Provider Partners: Service provider partners, such as Chainlink, Copper, Cobo, Safe, Navcoin and Ceffu, help Solv Protocol maintain its infrastructure efficiently and securely.
Solv Protocol offers an innovative solution for BTC holders seeking to maximize their assets’ utility beyond long-term investment. By bridging the gap between Bitcoin and DeFi, Solv empowers users to maintain liquidity while they earn rewards through staking and via LSTs.
With its seamless multichain integrations and transparent Proof-of-Reserve (PoR) system, Solv Protocol simplifies BTC yield generation, making it accessible to a broader audience and unlocking Bitcoin's full potential.
You can also earn rewards with Solv Protocol on Bybit through Jan 20, 2025, 10AM UTC. Simply stake Solana (SOL) tokens as Bybit Staked SOL (bbSOL), and you can win a share of 1.3 million native Solv Protocol (SOLV) tokens. Don't miss this exciting opportunity to maximize your holdings — read the event's announcement to get started!
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