Solv Protocol

Solana

Jupiter

New BTC

Bitcoin

Solv Protocol has launched a Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) staking token on Solana in a bid to woo BTC holders as yield opportunities proliferate for the digital currency, Solv told Cointelegraph on Oct. 17.&nbsp;
New BTC yield options in the Bitcoin network’s emerging ecosystem of layer-2 scaling chains (L2s) and decentralized Finance (DeFi) protocols are forcing projects on other networks — such as Ethereum and Solana — to compete for BTC liquidity.&nbsp;
Dubbed SolvBTC.JUP, the liquid staking derivative (LSD) is designed to generate BTC-denominated yield from transaction fees on Jupiter Exchange, one of Solana’s most popular decentralized exchanges (DEX).&nbsp;
The token launch is still in the pilot phase but is part of an “ongoing effort to enhance Bitcoin’s role in decentralized finance,” Solv said.
<figure><img alt="Decentralized Exchange, Solana, Layer2, Liquidity, Staking, EigenLayer" src="https://s3.cointelegraph.com/uploads/2024-10/01929c43-f0ca-7228-823b-2164052b564b" title="">
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 Jupiter Exchange TVL. Source: DefiLlama
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Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-yield-opportunities-booming-what-to-watch-for" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-yield-opportunities-booming-what-to-watch-for">Bitcoin yield opportunities are booming — Here’s what to watch for </a>
Solv is targeting a yield of approximately 12% annual percentage returns (APR) on BTC — considerably higher than BTC staking on L2s, which usually pay APRs in the low single digits.&nbsp;
The higher yield offsets additional risks from hedging against volatile token price exposures in Jupiter’s liquidity pool.
“Solv mitigates risk by deploying a delta neutral strategy, which involves hedging the traders’ net open interest on centralized exchanges,” Solv said.&nbsp;
Jupiter is among Solana’s most active decentralized exchanges, with approximately $1.3 billion in total value locked (TVL), <a data-ct-non-breakable="null" href="https://defillama.com/protocol/jupiter#information" rel="noopener noreferrer nofollow" target="null" text="null" title="null">according</a> to DefiLlama.&nbsp;
Some Bitcoin-native L2s — including Core Chain, Babylon, and Spiderchain — are exploring Bitcoin-native staking. Similar to proof-of-stake (PoS) networks such as Ethereum, Bitcoin L2 stakers lock up BTC as collateral to secure the networks in exchange for rewards.&nbsp;
EigenLayer, Ethereum’s largest restaking protocol, has also sought to woo BTC holders by adding wrapped Bitcoin to the roster of tokens EigenLayer accepts as <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/eigenlayer-avs-arpa-launch-native-restaking-rewards-september" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/news/eigenlayer-avs-arpa-launch-native-restaking-rewards-september">restaking collateral</a>.&nbsp;
Restaking involves taking a token that has already been staked — posted as collateral with a validator in exchange for rewards — and using it to secure other protocols simultaneously.
Magazine:&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/real-risks-ethena-stablecoin-model-not-ones-you-think/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">The real risks to Ethena’s stablecoin model (are not the ones you think)</a>

Solv launches Bitcoin staking token on Solana

Cointelegraph

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