Unified Bitcoin liquidity layer Solv Protocol announced the launch of the second phase of SolvBTC Babylon (SolvBTC.BBN) liquid staking token (LST) deposits across multiple networks. These networks encompass Ethereum for WBTC or FBTC users, BNB Chain for BTCB users, Arbitrum for WBTC users, and Merlin Chain for M-BTC users.
To ensure a secure launch, Babylon has implemented an initial cap on the amount of Bitcoin eligible for staking during its mainnet roll out. Staking rewards from Babylon will be distributed proportionally among participants based on their staked BTC amounts. As Babylon gradually raises its staking cap, Solv aims to secure a portion of the overall stake. Ultimately, SolvBTC.BBN tokens will be fully backed by Bitcoin staked in Babylon at a one-to-one ratio, inclusive of associated rewards.
In this phase, Solv Protocol has revised its incentive plan, allowing for an updated reward structure of 12 XP per $1 per day once the one-to-one backing requirement is met.
Furthermore, building on the initial success of user participation in Babylon’s staking ecosystem through Solv Protocol, the staking cap has been increased from 500 SolvBTC to 1000 SolvBTC, in response to the community feedback.
SolvBTC Babylon 2nd Epoch Deposits is now LIVE!
Round 2 Cap: 500 BTC
Earn 20 XP per $1 per day until SolvBTC.BBN is fully backed by Bitcoin staked in Babylon!
Learn more on SolvBTC.BBN Updated Incentives: https://t.co/22IQpk8LI4
Stake your Bitcoin with Solv today!… pic.twitter.com/FmEIrN7HDU
— Solv Protocol | EthCC 
(@SolvProtocol) July 12, 2024
Solv Protocol Introduces SolvBTC.BBN, Liquid Staking Token Designed For Bitcoin
The SolvBTC.BBN represents a recently launched LST designed for Bitcoin, utilizing Babylon‘s method to extend Bitcoin’s economic security to Proof-of-Stake (PoS) blockchains. It is set to be incorporated with multiple decentralized finance (DeFi) protocols, such as decentralized exchanges (DEXs), lending platforms, and yield-trading protocols, aiming to enhance flexibility and accessibility within the BTCFi ecosystem.
Meanwhile, Solv Protocol operates as a decentralized liquidity infrastructure tailored for ERC-3525 Semi-Fungible Tokens (SFTs). It serves to link on-chain entities with both individual and institutional investors through a liquidity network. Moreover, it offers solutions such as delta-neutral strategies, yield enhancement opportunities, and structured financial products.
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