Solv Protocol Unveils New Asset Classification for SolvBTC

Bitcoin staking platform Solv Protocol The classification of underlying assets for SolvBTC has been outlined by Solv Protocol. This strategic move aims to heighten user security, create new yield opportunities, and uphold liquidity within the ecosystem.

"SolvBTC's deployment across multiple blockchains, paired with our innovative approach to categorizing BTC reserves, is paving the way for diversification and setting a new benchmark for Bitcoin's role in DeFi,\" shared Ryan Chow, Director and Co-founder of Solv Protocol, in an official statement. \"With our strong network ties and total value locked (TVL), we are enabling Bitcoin to function across different chains, offering users more ways to utilize BTC within a safe and dynamic environment like never before,\" he added.

The asset classification system is intended to provide stability by organizing assets into clearly defined categories, implementing mint limits and cross-chain rate restrictions on innovative reserves to better manage and mitigate risks. This approach serves as a critical safeguard as the protocol scales up. The SolvBTC reserves are segmented into two main categories: Core Reserve and Innovative Reserve. The Core Reserve comprises native BTC and BTCB (backed by Binance), while the Innovative Reserve includes wrapped assets such as WBTC, cbBTC, FBTC, BTC.b, and tBTC.

Solv Protocol has emerged as a dominant force in the Bitcoin Liquid Staking Token (LST) landscape, achieving significant total value locked (TVL) and network connections, currently spanning over ten blockchain networks, including Ethereum, Base, BNB Chain, and Arbitrum. With reserves topping 25,000 BTC valued at over $2 billion, this multichain expansion empowers users to leverage BTC through a range of dynamic decentralized finance (DeFi) strategies. It significantly enhances the liquidity and flexibility of BTC through staking and lending across various networks.

Moreover, Solv is rolling out the utility of the SOLV token, positioning Solv Protocol among the pioneering BTCFi protocols to categorize its reserve assets. Although the classifications and parameters are currently set by Solv Protocol, governance will eventually shift to SOLV token holders as the platform evolves toward complete decentralization.

The utility of Solv’s token gains further traction with the incorporation of SolvBTC into the core pool of Venus Protocol, which stands as the leading lending protocol on the BNB Chain and ranks among the top five worldwide, according to DeFiLlama. With this inclusion, SolvBTC joins BTCB as the sole Bitcoin-related assets within Venus’s core offering, enabling users to use SolvBTC as collateral and borrow other assets like BNB. This partnership broadens DeFi strategies and allows participation in initiatives such as the Binance Launchpool.

Solv Protocol Broadens Bitcoin Staking Adoption Through the SAL Framework

Solv Protocol stands as a premier Bitcoin staking platform guided by the Staking Abstraction Layer (SAL). Through SolvBTC, which acts as an accessible Bitcoin reserve, the platform aspires to unlock the immense potential of over $1 trillion in Bitcoin assets.

This announcement follows Solv's ongoing efforts to increase the adoption of Bitcoin staking via its SAL framework. The SAL has facilitated 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. Additionally, the complete tokenomics and expanded functionalities of the SOLV token will be implemented in several phases.