On November 21, MicroStrategy's stock price rose over 10%, reaching a new high, while trading volume surpassed that of Nvidia and Tesla, becoming the stock with the highest trading volume in the US market that day. It can be said that MicroStrategy dominated the US stock market that day thanks to Bitcoin.
Time rewinds to August 11, 2020. On this day, MicroStrategy chairman Michael Saylor announced that MicroStrategy purchased approximately 21,454 Bitcoins for $250 million, becoming the first publicly traded company to incorporate Bitcoin into its financial strategy.
At that time, MicroStrategy's stock price was around $15, and now it has surpassed $500 at its peak, soaring 35 times, far exceeding the rise of Bitcoin itself.
MicroStrategy's All In approach to Bitcoin can be described as simple and crude: buy. Not only using the company's reserve funds to purchase Bitcoin, MicroStrategy also buys Bitcoin by issuing MSTR stock (ATM) and convertible bonds. As of the publication date, MicroStrategy has already held 402,000 Bitcoins.
Original source: Ethean
Moreover, The Wall Street Journal reported that the secondary market even created a MSRT2 leveraged ETF specifically for MSTR, and its market value exceeded $5 billion, providing another layer of impetus for MSTR's surge.
Is MicroStrategy enough?
Not just MicroStrategy, but also another driver of this bull market — ETFs, BlackRock's IBIT already holds over 500,000 Bitcoins. According to statistics, TradFi and various governments collectively hold over 14% of Bitcoin, but the liquidity of these assets remains idle and cannot flow onto the chain.
Top 15 entities holding Bitcoin
MSTR is not like the previous GBTC and Luna's rootless flywheel; it ultimately has the support of actual assets. But users still need to understand what the stocks they purchase actually represent. If one uses the funds to purchase one Bitcoin to exchange for MSTR stocks, the underlying value is not equivalent to one Bitcoin. Moreover, merely holding does not create other value.
Taking it a step further, as block rewards decrease and miners face increasing pressure, how can we ensure the security and sustainability of the Bitcoin network?
To solve the above problems, it is essential to go beyond the crude Buy and Hold model.
How does Solv Protocol become the on-chain MicroStrategy?
If Buy is a common goal for everyone, then upgrading Hold to Earn is not only a small step for Bitcoin but a significant leap for the entire industry.
Not just MicroStrategy, but also the other driver of this bull market — ETFs. BlackRock's IBIT already holds over 500,000 Bitcoins. According to statistics, TradFi and various governments collectively hold over 14% of Bitcoin, but the liquidity of these assets remains idle and cannot flow onto the chain.
Committed to becoming 'On-chain MicroStrategy,' Solv, leveraging SolvBTC to unleash the ecological vitality of BTC, has already generated returns on over 25,000 Bitcoins through Solv — ranking 7th compared to BTC ETFs, 6th compared to corporations, and 5th compared to national reserves. The era of Buy and Earn is approaching us.
The Growth History of Solv
In the DeFi sector, the most important point is safety and reliability.
The Solv team consists of a group of experienced and diverse professionals, with the core team having a strong background in financial analysis, blockchain technology integration, and industry applications. They have accumulated rich experience in large financial institutions, blockchain technology research, and IT system design, leading several projects with industry impact. Team members have also contributed to the design of the innovative blockchain standard — ERC-3525, aiming to promote a deep integration of technology and application scenarios. This background and expertise ensure Solv's security and technical reliability in the DeFi field.
The professional team has also garnered the favor of capital, with Solv Protocol attracting investments from well-known institutions such as Binance Labs, Blockchain Capital, OKX, Laser Digital, MPCI, IOSG, and Gumi, with cumulative funding exceeding $25 million.
From 2020 to 2023, Solv has accumulated its own technology, building an on-chain fund platform, creating basic yield opportunities for core assets like USDC, ETH, and BTC, and accumulating rich practical experience. These explorations have laid a solid foundation for subsequent business expansion.
At the beginning of 2024, Solv keenly captured the opportunity of the rise of the BTC ecosystem, quickly laying out in the BTC asset field based on a profound understanding of industry trends and a forward-looking insight into the market. From Solv's development history, it can be seen that Solv is neither a so-called speculative player in the race nor a common 'use it and toss it' project party, but rather a rare explorer and pioneer in the industry, with strong product update and iteration capabilities.
On-chain MicroStrategy: Unlocking BTC liquidity
At the beginning of 2024, the BTC ecosystem began to rise, with various BTC L2s emerging rapidly, capital strongly entering the market, and the community flocking to it. Relying on its deep understanding of the DeFi field and insights into the development of market cycles, Solv realized that the BTC ecosystem is different from ETH L2s; although the chain is important, the most crucial factor is the underlying asset — BTC. The key to attracting BTC is a reasonable and secure earning path. Solv launched SolvBTC to lower the barrier to entry and unify standards for the Bitcoin ecosystem. With strong technical capabilities and reputation, Solv quickly established partnerships with major protocols and platforms, allowing SolvBTC to rise step by step, ultimately becoming the largest liquidity provider in the Bitcoin ecosystem.
Overall, SolvBTC is a new type of token designed to break the liquidity limitations of Bitcoin, allowing Bitcoin assets to have higher liquidity and application value in a multi-chain ecosystem through unique designs. It adopts a layered reserve system, dividing reserve assets into core reserves and innovative reserves. This design ensures that every circulating SolvBTC is supported by 1:1 Bitcoin or trusted wrapped Bitcoin assets while achieving transparent and real-time reserve proof, providing users with higher security and trust.
The core concept of SolvBTC is to solve the problem of fragmented liquidity in the current blockchain ecosystem by integrating Bitcoin's liquidity. Whether on Ethereum, BNB Chain, or smaller chains like Mantle or Merlin, SolvBTC can seamlessly cross-chain, benefiting from its use of the Chainlink cross-chain protocol and Free.tech technology. This cross-chain capability allows users to freely navigate DeFi applications across multiple chains without worrying about complex conversion processes or high transaction costs.
Meanwhile, SolvBTC not only provides flexible asset management methods but also opens up new revenue channels for Bitcoin holders. While ensuring asset security, users can apply SolvBTC in various DeFi scenarios, such as liquidity mining, collateral loans, or yield optimization, allowing Bitcoin assets to unleash greater potential.
The true innovation of SolvBTC lies in its open, flexible, and compatible way of redefining Bitcoin's role in the blockchain ecosystem, ensuring the security of user assets while breaking the boundaries of traditional Bitcoin applications, providing holders with a true decentralized financial experience. By integrating transparent reserve management, powerful cross-chain capabilities, and flexible yield models, SolvBTC offers an efficient, safe, and reliable new solution for using Bitcoin in the DeFi world.
Solv has currently shaped four high-quality BTC yield assets: Babylon LST, CoreDAO LST, Ethena LST, and Jupiter LST, with a utilization rate of SolvBTC reaching 90%.
From maximum liquidity to industry standards
Winner takes all. Becoming the platform and standard is the ultimate goal of protocol development. With a solid underlying technical framework, Solv introduces the Staking Abstraction Layer (SAL) concept, preparing to become the underlying standard for the BTC ecosystem by establishing industry standards.
SAL is the core infrastructure of Solv Protocol, aiming to simplify the staking process for Bitcoin across multiple ecosystems, providing holders with a unified interface. In the SAL ecosystem, four key roles collaborate to ensure the transparency and security of the staking process.
1. Staking Protocols: These protocols are the infrastructure for Bitcoin staking, mainly divided into three categories:
· Layer 1 or Layer 2 chains based on PoS consensus mechanisms: Similar to the staking mechanism of Ethereum.
· Protocols that accept BTC assets and provide decentralized services: Such as oracles or cross-chain bridges, similar to re-staking protocols in the Ethereum ecosystem.
· General Staking Protocols: Including various DeFi protocols that accept BTC assets and generate income.
2. Liquid Staking Token Issuers (LST Issuers): LST issuers provide users with liquid staking tokens, allowing them to maintain asset liquidity while staking BTC. Unlike Ethereum, the issuance of Bitcoin's LST involves interactions between EVM chains and the Bitcoin mainnet, so a transparent and secure mechanism is needed to earn user trust.
3. Staking Guardians: This is a new role introduced by SAL, responsible for the transparency, integrity, and security of the staking process. They undertake responsibilities such as asset custody, transaction verification, and co-signing, ensuring the accuracy of staking transactions and preventing asset loss for users.
4. Yield Distributors: Due to the multi-chain nature of Bitcoin staking, yield distribution becomes complex. Users' potential returns include not only rewards from staking protocols but also additional incentives from LST issuers. These rewards may come from the Bitcoin mainnet, EVM networks, or other ecosystems. The roles of yield distributors are diverse, including converting rewards into BTC, transforming points into tokens, and assisting users in claiming rewards.
By coordinating these roles, SAL provides Bitcoin holders with a safe, transparent, and efficient staking environment, enabling them to participate in staking and earn rewards across multiple ecosystems with ease.
The ultimate goal of SAL is to set standards for the industry, creating stronger platform effects for the protocol itself while lowering barriers for the Bitcoin ecosystem, attracting more users and assets, paving the way for large-scale applications.
Solv's alliances and connections
Integration and application in DeFi are key. The Solv ecosystem not only has TVL but has also expanded to 15 chains and over 50 DeFi protocols, becoming an essential part of discussions about the Bitcoin ecosystem. SolBTC has also become one of the important underlying assets for many protocols.
Even with such a large TVL, SolvBTC's APY has not lagged behind. Based on Solv's current four high-quality BTC yield assets, excluding Babylon which does not have a clear APY yet, the average annual yield of the remaining three products is 15%, roughly estimating an annual yield of about $400 million. With the introduction of Solv's integration plan with traditional compliant capital channels, this yield scale will continue to expand in the future.
Not only that, how can DeFi do without layering? On the DeFi protocol Pendle, users can choose to hold YT-SolvBTC.BBN, allowing the potential returns of SolvBTC to continue to amplify.
Solv's journey goes beyond the traditional DeFi race; recently, the hottest on-chain contract platform Hyperliquid also features Solv — Solv announced its participation in Hyperliquid's spot auction.
According to community members' outlook, Solv has the potential to become the standard solution for BTC-based and BTC-collateralized assets in Hyperliquid, similar to Ethena's USDe accessing Bybit and being included in the margin system. As the largest liquidity provider in the Bitcoin ecosystem, SAL is also gradually expanding, perfectly positioned to provide a unified standard for BTC cross-chain after Hyperliquid's mainnet launch, becoming the only channel. SolvBTC can not only provide more liquidity and yield for Hyperliquid but also offer broader usage pathways for SolvBTC users.
Community first
According to data from the Solv official website, it already has over 529,000 users and an extremely large community.
At the same time, Solv is actively collaborating with various platforms to convey information and gameplay about the Bitcoin ecosystem to new users who have not been exposed to it. Solv has partnered with the Binance Web3 wallet, bringing a large number of users into the BNBchain ecosystem, which has also brought significant activity to the Bitcoin ecosystem. Earlier, Solv's Cryptopedia event with the OKX Web3 wallet saw participation from over 200,000 people.
MicroStrategy's holding of 400,000 Bitcoins gives it a market value exceeding $100 billion; in comparison, Solv Protocol has over 25,000 Bitcoins on-chain, and Solv's valuation imagination can be infinitely elevated. Recently, Solv Protocol announced that it will release Solv's token economic model — this will be the most innovative design in the market, a sustainable growth flywheel that will provide unprecedented best returns for Bitcoin holders. With the incentives from the token model, Solv's development may just be getting started.
Allow Bitcoin holders to not only enjoy price appreciation but also gain additional income generated from DeFi activities. This is what MicroStrategy and ETFs need, and it is precisely what Solv has built — a permissionless, transparent, and open platform that redefines Bitcoin reserves, transforming it from a passive store of value into a vibrant financial engine.
