Source: Binance official website, Solv Protocol white paper, Jinse Finance, RootData organized by Jinse Finance.

On December 30, Binance announced that Binance Megadrop has launched the third phase project - Solv Protocol (SOLV), a Bitcoin staking protocol focused on building a financial ecosystem centered around Bitcoin. Binance will list SOLV after the completion of Megadrop, and specific listing plans will be announced separately, so please stay tuned. Information on this Megadrop quota and Web3 task details will also be announced at that time.

Introduction to Binance Megadrop:

Binance Megadrop is a brand new token issuance platform that seamlessly integrates Binance Earn products with the Binance Web3 wallet, redefining the airdrop experience. Through Megadrop, users can participate in selected Web3 projects that have not yet officially launched on Binance.

I. Introduction to the Solv Protocol Project

Solv Protocol is an on-chain Bitcoin reserve aimed at unlocking the full potential of over $1 trillion in Bitcoin assets.

Through the Staking Abstraction Layer (SAL), SolvBTC, and SolvBTC.LSTs (liquid staking tokens), Solv enables retail and institutional investors to seamlessly integrate Bitcoin into the DeFi ecosystem while capturing diversified yield opportunities without sacrificing liquidity. Solv Protocol has garnered support from prominent investment institutions such as Binance Labs, Blockchain Capital, Laser Digital, and OKX Ventures.

Operating Model

Bitcoin has a market value of about $1.3 trillion and is widely regarded as the cornerstone of digital assets. However, despite Bitcoin's dominance, the actual proportion of Bitcoin participating in staking is very low. In contrast, nearly 28% of Ethereum's supply is staked, releasing hundreds of billions of dollars in economic activity. If Bitcoin holders could stake a portion of their assets like Ethereum, it would potentially unlock around $330 billion in additional value.

The Staking Abstraction Layer (SAL) is the core infrastructure of Solv Protocol. It abstracts the complexity of staking Bitcoin across multiple ecosystems, providing Bitcoin holders with a unified operational interface.

With SAL, users can access various yield strategies across different blockchains while holding Bitcoin’s liquid representation asset—SolvBTC.

By integrating with various DeFi platforms and ecosystems, SAL simplifies the process for Bitcoin holders to diversify their yield strategies, allowing them to participate in staking and earn while maintaining their Bitcoin exposure.

A unified and standardized system is crucial for coordinating these roles and ensuring transparency and security throughout the process—from depositing Bitcoin assets to ultimately accounting rewards into LST token value or distributing incentives to users. This coordination is vital for protecting user assets and ensuring a smooth and risk-free earning experience.

Solv Protocol has built a complete Bitcoin staking ecosystem. Through the integration of staking protocols, LST issuers, validators, and yield distributors, it enables seamless interaction between the Bitcoin mainnet and EVM-compatible chains, simplifying staking implementation for both users and developers. The staking protocol provides yield sources for staked Bitcoin, LST issuers issue liquid staking tokens to maintain asset liquidity during staking, validators are responsible for verifying the legality and security of staking transactions, and yield distributors transparently allocate the yields generated from staking to LST holders, offering users a more convenient, secure, and attractive staking experience.

II. Project Team

Core Team

Ryan Chow: Co-founder. Graduated from Beijing Foreign Studies University, formerly a co-founder at Beijing Youzan Technology, dedicated to applying blockchain technology to automotive industry databases. Additionally, he worked as a financial analyst at Singularity Financial, researching blockchain technology integration and financial regulation.

Will Wang: Co-founder. Created 'ERC-3525: Semi-Homogeneous Token Standard.' He has 20 years of experience in financial IT and has overseen the design and development of the world's largest banking accounting system based on open platforms and distributed technologies. He is the recipient of the '20th Anniversary Outstanding Contribution Award' in Zhongguancun.

Meng Yan: Co-founder. Former Vice President of CSDN, and an active KOL in the Crypto industry.

III. Token Economics

  • Token Name: Solv Protocol (SOLV)

  • Maximum Token Supply: 9,660,000,000 SOLV (to be increased by governance voting through BTC reserve fundraising plan)

  • Total Genesis Token Supply: 8,400,000,000 SOLV (86.96% of the maximum token supply)

  • Megadrop Token Rewards: 588,000,000 SOLV (7% of the total genesis token supply, 6.09% of the maximum token supply)

  • Initial Circulation at Binance Listing: 1,482,600,000 SOLV (17.65% of the total genesis token supply, 15.35% of the maximum token supply)