Bitcoin DeFi Solana

SolvBTC.JUP allows Bitcoin holders to deposit their BTC into Solv Protocol. Last updated:

October 17, 2024 08:14 EDT

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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Last updated:

October 17, 2024 08:14 EDT

Why Trust Cryptonews With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews Solv Protocol has launched SolvBTC.JUP, a new Liquid Staking Token (LST) aimed at integrating Bitcoin with Solana’s decentralized finance (DeFi) eco.

Currently in its pilot phase, this initiative seeks to allow Bitcoin holders to earn BTC-denominated returns directly on Solana’s network, according to a press release shared with Cryptonews.com.

SolvBTC.JUP allows Bitcoin holders to deposit their BTC into Solv Protocol, receiving SolvBTC.JUP in return.

The token represents staked Bitcoin, providing holders with an opportunity to earn yield while maintaining exposure to BTC.

Solv Taps Jupiter Exchange’s Liquidity Provider

The yield is generated by Solv’s participation in the Jupiter Exchange’s Liquidity Provider (JLP) Pool.

Solv Protocol utilizes a delta-neutral strategy, hedging the traders’ net open interest on centralized exchanges, to mitigate market volatility.

This approach allows for stable, risk-adjusted returns of approximately 12%, payable in BTC.

“This strategy provides Bitcoin holders with a reliable way to earn returns in BTC, differentiating itself from speculative yield-bearing strategies,” the firm said.

7/ SolvBTC Liquid Staking Tokens (SolvBTC.LSTs)

Leveraging SAL, we’ve introduced three LSTs:

🔹 SolvBTC.BBN: Restaking yields from @babylonlabs_io
🔹 SolvBTC.CORE: Tied to @Coredao_Org staking mechanisms
🔹 SolvBTC.ENA: Yield through @ethena_labs basis trading.

Each offers…

— Solv Protocol (@SolvProtocol) October 14, 2024

Jupiter Exchange is a major decentralized exchange on Solana with over $100 billion in trading volume.

Solana’s appeal as a leading DeFi hub, known for its fast transactions and low fees, makes it an attractive choice for expanding Bitcoin’s reach.

Integration with Solv’s Staking Abstraction Layer (SAL)

SolvBTC.JUP is the fourth product under Solv’s Staking Abstraction Layer (SAL), which aims to broaden Bitcoin yield options across different blockchain ecos.

The SAL initiative integrates with Solana’s infrastructure to offer a diversified range of staking solutions while maintaining flexibility and security for BTC holders.

“Through our SAL, BTC holders from any other EVM chains like Ethereum, BNB Chain, Avalanche and Base can gain access to Solana DeFi yields through SolvBTC.JUP,” the team said in a comment for Cryptonews.

“Underlying BTC will be custodied by top custodians in the space like Ceffu, Cobo and more.”

The pilot phase of SolvBTC.JUP is underway, with a full launch expected pending results.

The project mentioned that Solv has applied similar strategies on other platforms, such as GMX (Arbitrum), providing context for its entry into the Solana eco.

“The strategy is the same. The difference would be the trading volume of JUP (almost $3B in the past 7 days) vs GMX ($900M in the past 7 days).This makes the yield generation more scalable,” the team noted.

Earlier this week, Solv Protocol raised $11 million at a $200 million valuation from Nomura subsidiary Laser Digital, Blockchain Capital, and OKX Ventures, among others.

The project’s SolvBTC product has more than 20,000 BTC staked ($1.3 billion) deployed across 10 major blockchain networks.

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