Brothers, hello everyone, I am trader Zhu Yici. Binance launched the third Megadrop project - Solv Protocol, and will list the token at 6 pm on January 17. Today I will introduce in detail who Solv is and why it is called on-chain micro-strategy.
Solv Protocol is an on-chain Bitcoin reserve that aims to unlock the full potential of over $1 trillion in Bitcoin assets. Through their staking abstraction layer, SolvBTC and SolvBTC.LST (Liquid Staking Token), Solv enables retail and institutional investors to gain diversified yield opportunities without sacrificing liquidity by seamlessly integrating Bitcoin into the DeFi ecosystem.
Solv Protocol has received support from well-known investors such as Binance Labs, Blockchain Capital, Laser Digital, and OKX Ventures. Solv Protocol has undergone extensive security audits by leading companies such as Quantstamp, Certik, SlowMist, Salus, and Secbit.
SOLV is the native utility token of the Solv protocol, used for the following functions:
(1) Governance: SOLV token holders can vote on network governance decisions.
(2) Staking: By staking SOLV tokens on the staking abstraction layer, stakers can earn protocol emissions.
(3) Fee Discounts: SOLV token holders can enjoy fee discounts, including redemption fees for SolvBTC.
The Solv protocol is built on the following core components:
(1) SolvBTC: SolvBTC is a 1:1 BTC pegged token that provides Bitcoin holders with seamless and secure cross-chain transfers and DeFi participation.
(2) SolvBTC.LSTs (Liquid Staked BTC): SolvBTC.LSTs are liquid staking tokens that allow Bitcoin holders to earn yields while maintaining liquidity.
(3) Staking Abstraction Layer (SAL): SAL abstracts the complexity of staking Bitcoin across multiple ecosystems and provides Bitcoin holders with a unified interface, enabling them to earn yields across different blockchains.
As of December 31, 2024, the maximum token supply of SOLV is 9,660,000,000 (dynamic, potentially increased through the DAO governance of the Bitcoin reserve fundraising plan). The total genesis supply of SOLV is 8,400,000,000. The circulating supply after listing on Binance will be 1,482,600,000 (accounting for 17.65% of the genesis token supply and 15.35% of the maximum token supply).
Overall, SolvBTC is a new type of token designed to break the liquidity limitations of Bitcoin. Through its unique design, it allows Bitcoin assets to have higher liquidity and application value in a multi-chain ecosystem. It adopts a layered reserve system, dividing reserve assets into core reserves and innovative reserves. This design ensures that every circulating SolvBTC is backed 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 address the issue of liquidity fragmentation in the current blockchain ecosystem by integrating Bitcoin's liquidity. Whether it is Ethereum, BNB Chain, or smaller chains like Mantle or Merlin, SolvBTC can seamlessly cross chains, 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 complicated conversion processes or high transaction costs.
Enabling Bitcoin holders not only to enjoy price appreciation but also to gain additional income generated from DeFi activities. This is what micro-strategies and ETFs need, and it is precisely what Solv is building: a permissionless, transparent, and open platform that redefines Bitcoin reserves, transforming them from a passive store of value into a vibrant financial engine.