Originally published on: October 17, 2024
Solv Protocol has introduced a new Bitcoin staking token, SolvBTC.JUP, on Solana’s Jupiter Exchange to attract BTC holders with promising yield opportunities. This move comes as the Bitcoin network’s ecosystem expands with the rise of layer-2 scaling chains and decentralized finance protocols, creating a competitive environment for liquidity.
The liquid staking derivative (LSD), SolvBTC.JUP, aims to generate BTC-denominated yield through transaction fees on Jupiter Exchange, one of Solana’s leading decentralized exchanges. While still in its pilot phase, this launch is part of Solv’s ongoing commitment to strengthening Bitcoin’s presence in decentralized finance.
With a target yield of around 12% annual percentage returns (APR) on BTC, SolvBTC.JUP offers significantly higher returns compared to traditional BTC staking options. This higher yield factor helps mitigate risks associated with price fluctuations in the liquidity pool.
By utilizing a delta neutral strategy to hedge traders’ net open interest on centralized exchanges, Solv ensures risk management while maximizing yield potential. Jupiter Exchange, boasting approximately $1.3 billion in total value locked (TVL), is a key player in Solana’s decentralized exchange ecosystem.
Other Bitcoin-native layer-2 solutions like Core Chain, Babylon, and Spiderchain are also exploring Bitcoin staking options to attract BTC holders. Similarly, Ethereum’s largest restaking protocol, EigenLayer, has integrated wrapped Bitcoin as collateral for stakers seeking diversified opportunities.
As the landscape of decentralized finance continues to evolve, innovative solutions like SolvBTC.JUP offer BTC holders new avenues to participate in yield farming and staking. Subscribe to our Finance Redefined newsletter for more insights and opportunities in the ever-changing world of DeFi.
