Solv Protocol is a platform focused on Bitcoin staking, utilizing a system known as the Staking Abstraction Layer (SAL). Its main objective is to facilitate access for Bitcoin holders to decentralized finance (DeFi) opportunities. Solv Protocol’s framework is intended to enhance the liquidity of Bitcoin assets by offering liquid staking solutions.

SolvBTC, the platform's principal product, is designed to integrate Bitcoin into DeFi ecosystems. The protocol has been audited by security firms such as Quantstamp, Certik, and SlowMist. Solv Protocol is supported by investors, including Binance Labs, Blockchain Capital, and Laser Digital.^[1][3][6]

Overview

Bitcoin comprises a significant portion of the cryptocurrency market. However, many Bitcoin assets remain underutilized in terms of yield generation when compared to Ethereum, which has a developed staking infrastructure. Solv Protocol aims to introduce solutions for Bitcoin to participate more actively in DeFi by providing staking services and liquidity to its holders.^[1][5]

SolvBTC

SolvBTC is a token designed to represent Bitcoin in a form compatible with decentralized finance. Each SolvBTC token maintains a 1:1 peg with Bitcoin and can be created through the deposit of native Bitcoin or wrapped Bitcoin assets. This structure allows holders to move their assets between blockchain ecosystems more easily, enhancing the utility of Bitcoin in DeFi applications.

Reserve System

SolvBTC operates under a reserve system divided into two categories:

1. Core Reserve Assets: This includes assets like Bitcoin (BTC) and wrapped versions of Bitcoin (BTCB, cbBTC). These assets are considered more stable and form the main reserve backing SolvBTC.
2. Observed Reserve Assets: Assets such as WBTC, BTC.b, and M-BTC fall into this category, which carries higher risks, such as potential de-pegging or liquidity constraints. Solv uses a tiered approach to ensure transparency and limit exposure to these higher-risk assets through a Proof-of-Reserve system.^[1][2]

Cross-Chain Functionality

SolvBTC is designed to operate across multiple blockchain ecosystems. This functionality is facilitated by protocols like Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Free.tech, which enable the transfer of SolvBTC tokens between blockchains with low transaction costs and minimal delays.^[1][2]

Staking Abstraction Layer (SAL)

The Staking Abstraction Layer (SAL) serves as a foundational component for Bitcoin staking within Solv Protocol. It provides a unified system for staking, allowing Bitcoin holders to earn yields from a range of staking products. SAL supports various Bitcoin-based staking assets, such as SolvBTC.BBN and SolvBTC.ENA, each tied to different blockchain networks or use cases.^[1][2]

Yield Opportunities

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

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

Solv Protocol offers a structured approach to Bitcoin staking, with its liquid staking token SolvBTC designed to facilitate participation in decentralized finance. The platform’s reserve system and cross-chain functionality enable Bitcoin holders to utilize their assets across different blockchain networks. Solv Protocol positions itself as an infrastructure provider for Bitcoin liquidity, supporting its integration into the DeFi space through secure and accessible staking options.^[1][3]

SolvBTC.CORE

Solv Protocol introduced SolvBTC.CORE, a Liquid Staking Token (LST) for Bitcoin, developed in partnership with the Core ecosystem. This innovation enhances the utility of Bitcoin within decentralized finance (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 an annual return of up to 4% in CORE tokens, with opportunities to increase yields up to 10% through participation in DeFi activities.
• 1:1 Peg with Bitcoin: SolvBTC.CORE is fully backed by Bitcoin, ensuring that asset value is preserved.
• DeFi Integration: SolvBTC.CORE enables Bitcoin holders to engage in DeFi strategies without locking their assets, offering flexibility and financial opportunities.
• Institutional-Grade Security: Custodial services provided by Ceffu ensure a high level of security for the assets held within the protocol.^[7]

SolvBTC.JUP

Solv Protocol has also launched SolvBTC.JUP, a Liquid Staking Token for Bitcoin on the Solana blockchain, developed in collaboration with Jupiter Exchange. This pilot phase introduces yield opportunities for Bitcoin through Solana’s DeFi ecosystem, with SolvBTC.JUP offering an annual yield of approximately 12%.
The collaboration with Solana was chosen due to several advantages:

• 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.

This initial pilot phase is targeted at institutional users and select partners, allowing Solv Protocol to refine and scale the product before broader market adoption.^[10]

Funding

Solv Protocol has successfully raised more than $22 million across multiple funding rounds, aimed at building a decentralized platform that bridges liquidity across DeFi, CeFi, and TradFi ecosystems. The platform, powered by trustless fund infrastructure based on the ERC-3525 token standard, enables global institutions and retail investors to access secure crypto investments.
The funding rounds are as follows:

• October 2024: Solv Protocol secured $11 million in a strategic round, bringing the company's valuation to $200 million.
• August 2023: $6 million raised in a funding round.
• January 2022: An undisclosed amount was raised in a strategic funding round.
• December 2021: The company raised $4 million during its Series A round.
• May 2021: Solv Protocol received $1 million in seed funding.
• April 2021: Another strategic funding round, with the amount remaining undisclosed.

These funds have been allocated towards enhancing the platform's capabilities, further developing its decentralized infrastructure, and expanding its liquidity solutions across multiple financial sectors.^[4][12]

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 taking advantage of liquidity and staking strategies.
Key reasons for this integration include:

• Strong BTC Adoption: Avalanche is a significant holder of BTC.b, making it a natural fit for SolvBTC’s expansion.
• DeFi Hub: Avalanche’s fast, secure, and scalable infrastructure supports a robust DeFi ecosystem, allowing for efficient yield generation.
• Yield Opportunities: SolvBTC facilitates BTC.b holders in earning returns, participating in DeFi protocols, and contributing to liquidity pools.

AILayer

Solv Protocol has entered into a strategic partnership with AILayer, the first Bitcoin Layer 2 platform tailored for AI applications. This collaboration brings 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 represents a critical step in combining AI and DeFi technologies, offering innovative solutions for Bitcoin-based financial activities. The integration of SolvBTC with AILayer brings forward new opportunities for users to engage with decentralized finance through advanced AI-driven tools.^[9]

Suzaku

In another strategic move, Solv Protocol has integrated Suzaku, an 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 contribute to the decentralization of Avalanche's L1 network by staking their SolvBTC, thereby enhancing the network's security.
• Yield Generation: Users earn rewards through collateralized assets, maximizing the utility and earning potential of their Bitcoin holdings.^[8][11]