Solv Protocol Enhances SolvBTC With Asset Classification System
In Brief
Solv Protocol revealed the classification of underlying assets for the SolvBTC reserve, aiming to enhance user security, provide yield-generating opportunities, and maintain liquidity within the platform.
Bitcoin staking platform Solv Protocol revealed the classification of underlying assets for its SolvBTC reserve. This move aims to enhance security for users, provide yield-generating opportunities, and maintain liquidity within the platform.
“SolvBTC’s multichain deployment and our fresh approach to categorizing BTC reserves are providing diversification and setting a higher standard for Bitcoin utility in DeFi,” said Ryan Chow, Co-founder and CEO of Solv Protocol, in a written statement. “With our robust network connections and TVL, we are allowing Bitcoin to work across chains with more ways for users to leverage BTC in a secure and robust ecosystem like never before,” he added.
These classifications are designed to ensure stability by organizing assets into different categories, with minting caps and cross-chain rate limits applied to innovative reserves in order to manage and minimize risk. This standardization acts as a key protective measure as the protocol scales. The SolvBTC reserve is divided into two categories: Core Reserve and Innovative Reserve. Core reserves include native BTC and BTCB (Binance-backed), while innovative reserves comprise wrapped assets like WBTC, cbBTC, FBTC, BTC.b, and tBTC.
Solv Protocol has become one of the largest issuers of Bitcoin Liquid Staking Tokens (LST) in terms of TVL and network connections, now operating across more than ten blockchain networks, including Ethereum, Base, BNB Chain, and Arbitrum. With over 25,000 BTC in reserves, worth over $2 billion, this multichain expansion provides users with the ability to leverage BTC in a variety of decentralized finance (DeFi) strategies. It enhances the liquidity and versatility of BTC through staking and lending opportunities across multiple networks.
In addition, Solv is introducing the utility of the SOLV token, making Solv Protocol one of the first BTCFi protocols to classify its reserve assets. While the current classifications and parameters are determined by Solv Protocol, they will eventually be decided by SOLV token holders as the platform transitions to full decentralized governance.
The utility of Solv’s token is further strengthened with the inclusion of SolvBTC in the core pool of Venus Protocol, the largest lending protocol on the BNB Chain and among the top five globally, according to DeFiLlama. SolvBTC now joins BTCB as the only Bitcoin-related assets in Venus’ core pool, allowing users to collateralize SolvBTC and borrow assets like BNB. This integration expands DeFi strategies and enables participation in initiatives like the Binance Launchpool.
Solv Protocol Expands Bitcoin Staking Adoption Via SAL Framework
Solv Protocol is a leading Bitcoin staking platform powered by the Staking Abstraction Layer (SAL). Through SolvBTC, a Bitcoin reserve accessible to all, the platform aims to unlock the full potential of over $1 trillion in Bitcoin assets.
This announcement comes after Solv’s recent efforts to expand the adoption of Bitcoin staking through its SAL framework. The SAL has enabled the launch of four SolvBTC Liquid Staked Tokens (LSTs): SolvBTC.BBN for Babylon, SolvBTC.ENA for Ethena, SolvBTC.Core for Core, and SolvBTC.JUP for Jupiter. In addition, the full tokenomics and expanded utility of the SOLV token will be rolled out in multiple phases.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
