Solv Protocol has introduced SolvBTC.JUP, a new Liquid Staking Token (LST) designed to integrate Bitcoin into Solana’s decentralized finance (DeFi) ecosystem. Currently in its pilot phase, this initiative allows Bitcoin holders to earn BTC-denominated yields directly on Solana’s network, according to a press release shared with Cryptonews.com.
How SolvBTC.JUP Works
SolvBTC.JUP enables Bitcoin holders to deposit their BTC into Solv Protocol, receiving SolvBTC.JUP tokens in return. These tokens represent staked Bitcoin, allowing holders to earn yield while maintaining exposure to BTC.
Partnership with Jupiter Exchange’s Liquidity Pool
The yield from SolvBTC.JUP is generated by Solv Protocol’s participation in the Jupiter Exchange’s Liquidity Provider (JLP) Pool. Using a delta-neutral strategy, Solv Protocol hedges traders’ net open interest on centralized exchanges to reduce market volatility, ensuring stable, risk-adjusted returns.
This strategy currently offers approximately 12% yield, payable in BTC. According to the team, the method provides stable returns without relying on speculative yield-bearing strategies.
Jupiter Exchange, one of Solana’s leading decentralized exchanges with over $100 billion in trading volume, plays a key role in ensuring liquidity for the SolvBTC.JUP product. Solana’s fast transaction speeds and low fees make it an appealing hub for expanding Bitcoin’s reach in DeFi.
Integration with Solv’s Staking Abstraction Layer (SAL)
SolvBTC.JUP is the fourth product introduced under Solv’s Staking Abstraction Layer (SAL), which seeks to expand Bitcoin yield opportunities across various blockchain ecosystems. The SAL system integrates with Solana’s infrastructure, offering diverse staking solutions while prioritizing security and flexibility for BTC holders.
BTC holders from different EVM chains, such as Ethereum, BNB Chain, Avalanche, and Base, can access Solana’s DeFi yields through SolvBTC.JUP. The underlying Bitcoin is securely custodied by top custodians in the crypto space, including Ceffu and Cobo.
The pilot phase is currently in progress, with a full launch expected after successful testing. Solv has applied similar strategies on platforms like GMX (Arbitrum), but with Solana’s higher trading volume—$3 billion in the past 7 days compared to $900 million on GMX—the yield generation is more scalable.
Recent Funding and Expansion
Earlier this week, Solv Protocol secured $11 million in funding at a $200 million valuation, with investments from Nomura subsidiary Laser Digital, Blockchain Capital, and OKX Ventures, among others.
The SolvBTC product has already deployed over 20,000 BTC (worth approximately $1.3 billion) across 10 major blockchain networks, further solidifying its presence in the DeFi space.
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