Solv Protocol is a decentralized platform for enhancing yield and liquidity across major assets within the cryptocurrency ecosystem by establishing a Decentralized Bitcoin Reserve. The project aims to build a platform where BTC assets can flow across blockchain networks to unify Bitcoin’s liquidity and amplify its utility. Currently, bitcoin (BTC) holders are unable to deploy their assets on other blockchains, resulting in idle BTC.
The Decentralized Bitcoin Reserve is built on three pillars in order to address various aspects needed to create a comprehensive and compliant product. First is the Liquidity Consensus Network (LCN) which serves as the operational core to manage liquidity and ensure smooth cross-chain interactions. The LCN provides dynamic liquidity management by handling and managing Bitcoin within the reserve. It also supports the transfer of Bitcoin assets across different blockchain networks and integrates liquidity from diverse sources. On top of that, the LCN operates with transparent and auditable records as well as regular reporting to provide transparency and network safety.
The second pillar is Solv Protocol’s implementation of UTXO-3525, a protocol that maps Bitcoin transactions to the ERC-3525 standard. This protocol enables the transfer of Bitcoin-related assets such as BTC, Ordinals, and Runes from the Bitcoin chain to EVM-compatible networks. By mapping these transfers, users can enjoy features like uncollateralized borrowing and enhanced liquidity for Bitcoin assets. UTXO-3525 is also meant to support the reserve’s scalability by accommodating growing demand.
Facilitating traditional finance integration via the compliance bridge is the third and final pillar of the reserve. It focuses on creating an infrastructure that encourages traditional financial institutions to participate by implementing a compliant infrastructure. This includes efforts such as the tokenization of BTC ETFs as well as comprehensive reporting and auditing capabilities that can meet the requirements of traditional finance participants.
SolvBTC is a Liquid Yield token kept in the reserves and backed 1:1 by Bitcoin. Users who participate on Solv Protocol can earn yield with SolvBTC by utilizing yield vaults or exploring DeFi opportunities. Depositing SolvBTC into Yield Vaults provides access to BTC Staking, Restaking, and Delta-Neutral Trading strategies. Meanwhile, SolvBTC can also be staked and converted into liquid staking tokens such as SolvBTC.BBN and SolvBTC.ENA. It is currently deployed on five major networks including Bitcoin mainnet, Ethereum mainnet, and BNB chain.
Solv Protocol has successfully raised $16 million across five funding rounds and is backed by prominent investors including Binance Labs, Blockchain Capital, Laser Digital, and more. The protocol has also undergone security audits by various firms such as Quantstamp, Certik SlowMist, Salus, and Secbit.
