Solv Protocol announced the launch of a new Bitcoin staking token on Solana. The project's goal is to attract BTC holders by offering higher yields.
Launch of new staking token
The new token, named SolvBTC.JUP, is a liquid staking derivative designed to generate BTC-denominated yield from transaction fees on Jupiter Exchange, one of Solana’s most popular decentralized exchanges (DEX).
Competition for BTC liquidity
As the ecosystem of layer-2 chains and DeFi protocols evolves, new yield opportunities for Bitcoin arise, prompting projects on platforms like Ethereum and Solana to compete for BTC liquidity.
Advantages and risk mitigation
Solv offers up to 12% annual percentage returns on BTC, significantly higher than typical yields on L2 networks. This is achieved through a risk-neutralizing strategy, including hedging traders’ net open interest on centralized exchanges.
The new token SolvBTC.JUP provides additional opportunities for Bitcoin holders looking to utilize advanced staking mechanisms on Solana.