Hassan Maishera
Solv Protocol announced on Thursday, November 7th, that it has classified underlying assets for its SolvBTC reserve.
In a press release shared with Cryptowisser, Solv Protocol said this move ensures user security and yield-generating opportunities while maintaining liquidity. The classifications help ensure stability with various asset types, and minting caps and cross-chain rate limits are implemented for innovative reserves to manage and minimize risk.
Solv Protocol added that the standardization serves as an essential layer of protection as the protocol continues to scale. The SolvBTC reserve categorizes assets into Core Reserve and Innovative Reserve.
According to the team, Core reserves consist of native BTC and BTCB (Binance-backed), while innovative reserves include wrapped assets WBTC, cbBTC, FBTC, BTC.b, and tBTC.
Solv added that it is now one of the largest BTC Liquid Staking Token (LST) issuers to go multichain regarding TVL and network connections. It is accessible across more than ten blockchain networks, including Ethereum, Base, BNB Chain, and Arbitrum, with over 25,000 BTC in reserves (over $2 Billion).
Solv Protocol’s multichain expansion enables users to engage BTC in diverse DeFi strategies with its added utility. It allows staking and lending to maximize BTC’s liquidity and versatility across networks.
Furthermore, Solv is marking the first introduction of the SOLV token utility, making Solv Protocol one of the first BTCFi protocols to classify its reserve assets.
At the moment, Solv Protocol decides the classifications and parameters. However, as the platform transitions to fully decentralized governance, SOLV token holders will determine them.
Solv Protocol added that the utility of its native token is further amplified as SolvBTC was accepted into the core pool of Venus Protocol, the largest lending protocol on BNB Chain and in the top five globally on DeFiLlama.
SolvBTC joins BTCB as the only BTC asset in the Venus core pool. This enables users to collateralize SolvBTC to borrow assets like BNB, further facilitating DeFi strategies, including participation in the Binance Launchpool.
While commenting on this latest development, Ryan Chow, Co-founder & CEO of Solv, said,
"SolvBTC’s multichain deployment and our fresh approach to categorizing BTC reserves is providing diversification and setting a higher standard for Bitcoin utility in DeFi. 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."
This latest development comes after Solv’s recent move to bring Bitcoin staking to wider adoption with its Staking Abstraction Layer (SAL). The SAL framework has facilitated the launch of four SolvBTC Liquid Staked Tokens (LSTs): SolvBTC.BBN (Babylon), SolvBTC.ENA (Ethena), SolvBTC.Core, and SolvBTC.JUP (Jupiter).
The team added that the full tokenomics and additional utility of the SOLV token will be introduced in a multiphase rollout.
Solv Protocol is the leading Bitcoin staking platform powered by its innovative Staking Abstraction Layer (SAL). Through SolvBTC, a Bitcoin Reserve for everyone, we unlock the full potential of over $1 trillion in Bitcoin assets.
With SolvBTC.LSTs (Liquid Staking Tokens), Bitcoin holders gain access to diverse yield opportunities without sacrificing liquidity, allowing them to participate in DeFi ecosystems seamlessly. Solv acts as a comprehensive gateway to BTCFi, paving the way for institutional and traditional funds to confidently enter the crypto space.
Solv Protocol is backed by prominent investors such as Binance Labs, Blockchain Capital, Laser Digital, and others. Solv Protocol has undergone extensive security audits by leading firms, including Quantstamp, Certik, SlowMist, Salus, and Secbit.
