Solv Protocol SolvBTC (SOLVBTC)

Solv Protocol is a platform dedicated to Bitcoin staking, using a system known as the Staking Abstraction Layer (SAL). The primary goal of Solv Protocol is to provide Bitcoin holders with access to decentralized finance (DeFi) opportunities by enhancing the liquidity of Bitcoin assets through liquid staking solutions.

SolvBTC, the main product of the platform, is designed to integrate Bitcoin into DeFi ecosystems. The protocol has undergone security audits by firms such as Quantstamp, Certik, and SlowMist. The initiative is backed by investors like Binance Labs, Blockchain Capital, and Laser Digital.

Overview

Bitcoin is a major component of the cryptocurrency market, yet many Bitcoin assets are underutilized in terms of yield generation compared to Ethereum, which boasts a developed staking infrastructure. Solv Protocol seeks to address this by enabling Bitcoin to participate more actively in DeFi through staking services and liquidity provision for its holders.

Contract Addresses
Ticker	SOLVBTC
Category	Crypto-Backed Tokens
Website	https://app.solv.finance/solvbtc
Twitter	@SolvProtocol
Telegram	SolvProtocol
ethereum	0x7a...97Copied!
binance-smart-chain	0x4a...f7Copied!
arbitrum-one	0x36...c0Copied!
zklink-nova	0xbe...2cCopied!
merlin-chain	0x41...71Copied!
mantle	0xa6...a9Copied!
bob-network	0x54...77Copied!
base	0x3b...1fCopied!
avalanche	0xbc...77Copied!

SolvBTC

SolvBTC is a token that represents Bitcoin in a form compatible with decentralized finance. Each SolvBTC token maintains a 1:1 peg with Bitcoin and can be created by depositing native Bitcoin or wrapped Bitcoin assets. This allows holders to move their assets easily between blockchain ecosystems, increasing the utility of Bitcoin in DeFi applications.

Reserve system

SolvBTC operates under a reserve system divided into two categories:

Core Reserve Assets: This includes assets like Bitcoin (BTC) and wrapped versions of Bitcoin (BTCB, cbBTC), which are considered more stable and form the main reserve backing SolvBTC.
Observed Reserve Assets: This category includes assets such as WBTC, BTC.b, and M-BTC, which carry higher risks. Solv ensures transparency and limits exposure to these assets through a Proof-of-Reserve system.

Cross-chain functionality

SolvBTC is designed for operation across multiple blockchain ecosystems. This is facilitated by protocols like Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Free.tech, enabling the transfer of SolvBTC tokens between blockchains with low transaction costs and minimal delays.

Staking Abstraction Layer (SAL)

The Staking Abstraction Layer (SAL) is a key component for Bitcoin staking within Solv Protocol. It offers a unified system for staking, allowing Bitcoin holders to earn yields from various staking products. SAL supports different Bitcoin-based staking assets, such as SolvBTC.BBN and SolvBTC.ENA, each linked to different blockchain networks or use cases.

Yield opportunities

SAL provides Bitcoin holders with access to various yield sources, including:

Restaking: Contributing to the security of Proof of Stake (PoS) networks.
Validator Rewards: Operating validator nodes to receive rewards in native tokens.
DeFi Yields: Engaging with decentralized finance platforms offering yield-generating opportunities for liquid staked tokens (LSTs).

Solv Protocol offers a structured approach to Bitcoin staking with its liquid staking token SolvBTC, facilitating participation in DeFi. Its reserve system and cross-chain functionality enable Bitcoin holders to utilize their assets across different blockchain networks, positioning Solv Protocol as an infrastructure provider for Bitcoin liquidity.

SolvBTC.CORE

Solv Protocol introduced SolvBTC.CORE, a Liquid Staking Token (LST) for Bitcoin, developed with the Core ecosystem. This innovation enhances Bitcoin's utility in DeFi by allowing holders to earn yields while maintaining liquidity.

Key features of SolvBTC.CORE include:

Yield Generation in CORE Tokens: Bitcoin holders can earn returns in CORE tokens, with opportunities to increase yields through DeFi activities.
1:1 Peg with Bitcoin: SolvBTC.CORE is fully backed by Bitcoin.
DeFi Integration: It allows Bitcoin holders to engage in DeFi strategies without locking their assets.
Institutional-Grade Security: Custodial services provided by Ceffu ensure high security for assets.

SolvBTC.JUP

Solv Protocol has also launched SolvBTC.JUP, a Liquid Staking Token for Bitcoin on the Solana blockchain, developed with Jupiter Exchange. This pilot phase introduces yield opportunities for Bitcoin through Solana’s DeFi ecosystem.

The collaboration with Solana was chosen due to advantages like:

Low Fees and Fast Transactions: Solana’s infrastructure offers an efficient platform for generating high APYs for Bitcoin holders.
Jupiter Exchange: One of Solana's leading decentralized exchanges, Jupiter's Liquidity Provider (JLP) Pool offers substantial returns.

Funding

Solv Protocol has raised over $22 million across multiple funding rounds to build a decentralized platform bridging liquidity across DeFi, CeFi, and TradFi ecosystems. The platform, powered by trustless fund infrastructure based on the ERC-3525 token standard, enables access to secure crypto investments for global institutions and retail investors.

The funding rounds include:

October 2024: $11 million secured, valuing the company at $200 million.
August 2023: $6 million raised.
January 2022: An undisclosed amount.
December 2021: $4 million during Series A.
May 2021: $1 million in seed funding.
April 2021: Another strategic round with an undisclosed amount.

These funds have been used to enhance the platform's capabilities and expand its liquidity solutions.

Partnerships

Solv Protocol on Avalanche

In collaboration with Avalanche, Solv Protocol extended the SolvBTC offering to the Avalanche ecosystem. This partnership allows BTC.b holders on Avalanche to mint Liquid Staking Tokens (LSTs) and unlock yield-generating opportunities. By integrating SolvBTC with Avalanche’s DeFi infrastructure, users can maintain their Bitcoin exposure while benefiting from liquidity and staking strategies.

Key reasons for this integration include:

Strong BTC Adoption: Avalanche is a significant holder of BTC.b.
DeFi Hub: Avalanche’s infrastructure supports a robust DeFi ecosystem.
Yield Opportunities: SolvBTC facilitates BTC.b holders in earning returns.

AILayer

Solv Protocol has partnered with AILayer, the first Bitcoin Layer 2 platform for AI applications. This collaboration introduces new cross-chain liquidity solutions to the DeFi space, allowing holders of aBTC to convert their assets to SolvBTC. This enhances liquidity depth and provides additional staking opportunities through SolvBTC.BBN.

This partnership combines AI and DeFi technologies, offering innovative solutions for Bitcoin-based financial activities.

Suzaku

Solv Protocol has integrated Suzaku, a staking protocol, into its Staking Abstraction Layer (SAL). This partnership enhances the economic security of Avalanche Layer 1 networks, allowing SolvBTC holders to earn yields while supporting the decentralization of Avalanche’s Layer 1 infrastructure.

Key benefits of this integration include:

Increased Security: BTC holders can enhance Avalanche's network security by staking SolvBTC.
Yield Generation: Users earn rewards through collateralized assets, maximizing their Bitcoin holdings' utility.