Solv Protocol has announced the classification of underlying assets for its SolvBTC reserve. In doing so, the Solv protocol preserves liquidity while guaranteeing user security and yield-generating possibilities.
With the implementation of cross-chain rate limitations and minting caps for novel reserves to control and reduce risk, these classifications aid in ensuring stability with a variety of asset kinds.
As the protocol continues to scale, this standardization provides a crucial layer of protection. Assets are divided into two categories by the SolvBTC reserve: Core Reserve and Innovative Reserve. While wrapped assets WBTC, cbBTC, FBTC, BTC.b, and tBTC are examples of Innovative reserves, core reserves are made out of native BTC and BTCB (Binance-backed).
With more than 25,000 BTC in reserves (more than $2 billion), Solv is now among the biggest BTC Liquid Staking Token (LST) issuers to go multichain in terms of TVL and network connections. It is available across more than 10 blockchain networks, including Ethereum, Base, BNB Chain, and Arbitrum.
Because of its multichain development, users may use Bitcoin in a variety of DeFi tactics thanks to its additional functionality, which enables lending and staking to optimize its liquidity and adaptability across networks.
Furthermore, the SOLV token utility is being introduced for the first time, making the Solv Protocol one of the first BTCFi protocols to classify its reserve assets.
Solv Protocol now determines the classifications and parameters, but as the platform moves toward completely decentralized governance, SOLV token holders will have the last say.
The fact that SolvBTC was added to the core pool of Venus Protocol, the biggest lending protocol on BNB Chain and one of the top five worldwide on DeFiLlama, further increases the usefulness of Solv’s token. As the only Bitcoin asset in the Venus core pool, SolvBTC now joins BTCB. This makes it possible for users to use SolvBTC as collateral to borrow assets like as BNB, which further facilitates DeFi tactics, such as joining the Binance Launchpool.
Ryan Chow, Co-founder & CEO of Solv stated:
“SolvBTC’s multichain deployment and our fresh approach to categorizing BTC reserves is providing diversification and setting a higher standard for Bitcoin utility in DeFi. With our robust network connections and TVL, we are allowing Bitcoin to work across chains with more ways for users to leverage BTC in a secure and robust ecosystem like never before.”
This statement comes after Solv recently announced plans to use its Staking Abstraction Layer (SAL) to expand the use of Bitcoin staking. Four SolvBTC Liquid Staked Tokens (LSTs) have been launched thanks to the SAL framework: SolvBTC.BBN (Babylon), SolvBTC.ENA (Ethena), SolvBTC.Core, and SolvBTC.JUP (Jupiter). A multiphase rollout will introduce the SOLV token’s complete tokenomics and additional utility.
Click here to find out more about Solv’s new reserve classifications.
