Solv Brings BTC Staking to Solana with the Launch of SolvBTC.JUP

Solv, the booming Bitcoin liquid staking platform, is bringing BTC staking onto Solana. On Oct. 17, Solv announced the initial launch of SolvBTC.JUP

DeFi protocol Solv is bringing BTC staking to Solana (SOL) with the launch of a new token, SolvBTC.JUP, on Jupiter Exchange.Announced Monday, the token will accrue yield by providing liquidity on the Solana decentralized exchange (DEX) aggregator. Solv described the new product as a “pilot” to integrate its Staking Abstraction Layer into Solana's burgeoning decentralized finance (DeFi) ecosystem.

The product will be available only to institutional traders in its initial rollout, according to the announcement. The pilot will allow Solv to gather feedback and refine the product before deploying it to a broader audience.

SolvBTC.JUP's yield strategy will hedge net open interest on centralized exchanges to minimize the risks associated with the liquidity-providing strategy, the announcement said. While the Jupiter Liquidity Provider pool is currently offering yields of 28%, Solv said that token holders will receive around 12% in BTC after adjusting for the hedging strategy.

“This product allows Bitcoin holders to earn yield without sacrificing liquidity or exposure to Bitcoin,” Solv said. “This marks a major milestone as we bring yield-bearing Liquid Staking Tokens (LSTs) to the Bitcoin community, unlocking opportunities to earn BTC-denominated returns via a CeDeFi strategy.”

Users can deposit Bitcoin or Wrapped Bitcoin to mint SolvBTC — which holders can then convert into SolvBTC.JUP.

Solv said it plans to launch similar Bitcoin staking products across other blockchain networks in the near future.

Solv's CeDeFi strategy aims to combine the strengths of centralized and decentralized finance to offer users the best of both worlds. The strategy involves using centralized exchanges to hedge risks and enhance capital efficiency while leveraging DEXs to provide liquidity and earn yields.

The protocol has seen explosive growth since launching a points program in April. Solv's total value locked (TVL) currently stands at $1.75 billion, according to DeFi Llama. The protocol also ranks as the largest on Bitcoin with a TVL of $528.1 million.

Solv and other liquid staking protocols also appeared to be major beneficiaries from the recent surge of deposits into Babylon, the highly anticipated Bitcoin staking protocol. On Oct. 8, Babylon opened deposits for just 10 Bitcoin blocks (roughly 100 minutes), which precipitated more than $1.42 billion worth of BTC deposits.