Solv Protocol Brings Bitcoin Staking to Base via Coinbase Wrapped Bitcoin Token cbBTC

On Sept. 12, Coinbase revealed that its cbBTC token was now live on Ethereum (ETH) and the layer 2 chain Base.

Binance Labs-backed Solv Protocol has announced the launch of Bitcoin (BTC) staking on Base, Coinbase's layer 2 chain, through the newly launched Coinbase wrapped Bitcoin (cbBTC) token.

Coinbase unveiled the launch of its cbBTC token on Ethereum (ETH) and Base on September 12. Solv Protocol shared news of its launch of Bitcoin staking on Base in a press release shared with crypto.news.

According to the platform, the unveiling of the cbBTC token, which is backed 1:1 by BTC holdings on Coinbase, presents another avenue for users on Base to utilize their Bitcoin in the decentralized finance (DeFi) market.

cbBTC holders to mint SolvBTC to participate in DeFiSolv Protocol stated that cbBTC holders can participate in DeFi by minting SolvBTC. Notably, users can expand their participation in the market by converting SolvBTC into SolvBTC.BBN, a liquid staking token that provides access to additional Bitcoin staking yields.

“Integrating cbBTC as a reserve asset is a critical step towards unifying Bitcoin liquidity and making the Bitcoin DeFi experience more accessible to users,” said Solv Protocol co-founder Ryan Chow.

Coinbase's launch of cbBTC enables its BTC holders to convert assets to the new wrapped token, much like BTC holders have done with wrapped Bitcoin (WBTC).

In the case of cbBTC, the process will involve transferring Bitcoin from user accounts to either Base or Ethereum addresses. The BTC is then converted to cbBTC and can be used across various DeFi protocols, including MakerDAO (MKR), Aave (AAVE), and Compound (COMP).

Solv Protocol joins this growing market with its liquid staking token, SolvBTC.Other platforms that provide restaking or liquid staking opportunities for the Bitcoin community include Lombard Finance, Swell, and AcreBTC.