Solv Protocol changed the classification of the assets contained in its SolvBTC reserve, in order to enhance security as well as yield-generation opportunities.
According to a Nov. 7 announcement, SolvBTC assets will be now divided into two categories, namely core reserve and innovative reserve. The core reserve consists of native Bitcoin (BTC) and Bitcoin BEP2 (BTCB), whereas the innovative reserve is made up of Wrapped Bitcoin (WBTC), cbBTC, FBTC, Bitcoin Avalanche Bridged (BTC.b) and tBTC.
The current classification parameters are decided by the Solv team. Still, the announcement promises that in the future they will be determined by SOLV token holders through a fully decentralized governance system. Solv CEO and co-founder Ryan Chow said:
“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.”
Solv is the largest Bitcoin liquid staking token issuer that operates on a multichain basis when it comes to total value locked. It is accessible across more than ten blockchains including Ethereum (ETH), Base, BNB Chain (BNB) and Arbitrum with over 25,000 BTC in its reserves worth over $2 billion.
The protocol being accessible through multiple blockchains allows users to use Bitcoin in decentralized finance (DeFi) transactions across many diverse ecosystems. The announcement follows the recent launch of SolvBTC.JUP, allowing Solana (SOL) users to earn 8% on their Bitcoin investments.
The SolvBTC.JUP offers its yield through Solana’s DeFi ecosystem, by leveraging delta-neutral strategies to lower the risks deriving from market volatility. Solv also recently launched its stacking abstraction layer which allows for the easier launch of staked token, already powering SolvBTC.BBN (Babylon), SolvBTC.ENA (Ethena), SolvBTC.Core in addition to SolvBTC.JUP,
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
