What is SolvBTC (SolvBTC)?

Deep Dive

1. Purpose & value proposition

SolvBTC aims to unlock Bitcoin’s dormant value by letting users earn yield without selling their BTC. It bridges Bitcoin to DeFi via a transparent reserve model, allowing BTC holders to participate in lending, liquidity pools, and structured products like the BTC+ Vault (4.5–99.99% APR) (Solv Protocol). Over $2B in BTC is currently deployed through Solv, targeting both retail and institutional users seeking BTC-denominated returns.

2. Technology & architecture

• Reserve model: Backed 1:1 by BTC/WBTC held with custodians like Ceffu, verified via Chainlink Proof-of-Reserves for real-time transparency (Chainlink).
• Cross-chain: Operates on Ethereum, BNB Chain, Avalanche, and others, using bridges like Interport (powered by Chainlink CCIP).
• Redemption: Processed weekly with a 0.05% fee, supported by the Redemption Settlement Layer for instant conversions between yield-bearing xSolvBTC and liquid SolvBTC (Solv Protocol).

3. Ecosystem & adoption

• Partnerships: Integrated with Pendle Finance (top BTC LP pool: $160M TVL), ListaDAO (borrowing at 1%), and AlchemyPay for fiat on-ramps in 173+ countries.
• Yield strategies: Collaborates with BlackRock’s BUIDL and Hamilton Lane’s SCOPE for real-world asset exposure.
• TVL: $2B+ in BTC reserves as of August 2025, with 250% growth since June 2025 (DeFiLlama).

Conclusion

SolvBTC merges Bitcoin’s store-of-value with DeFi’s yield potential, though its whale-dominated supply (95% held by large wallets) warrants monitoring.

What risks might arise from relying on centralized custodians for BTC reserves?