Key Takeaways:
- Solv Protocol launched SolvBTC.JUP, a Bitcoin staking token on Solana, offering up to 12% APR for BTC holders.
- The token generates yield from fees on Jupiter Exchange, leveraging a delta-neutral strategy to minimize risk.
- Bitcoin’s role in DeFi is expanding, with L2 solutions and protocols like EigenLayer incorporating BTC staking models.
Solv Protocol has launched a new Bitcoin staking token, SolvBTC.JUP, on the Solana blockchain, offering BTC holders higher yield opportunities as decentralized finance (DeFi) and Bitcoin’s layer-2 (L2) ecosystems expand.
Announced on October 17, SolvBTC.JUP is a liquid staking derivative (LSD) that generates BTC-denominated yield through transaction fees on Jupiter Exchange, a leading Solana decentralized exchange (DEX) with $1.3 billion in total value locked (TVL).
Introducing SolvBTC.JUP: The First Step into @solana’s DeFi Ecosystem!
— Solv Protocol (@SolvProtocol) October 17, 2024
We’re thrilled to announce SolvBTC.JUP, a pilot Liquid Staking Token (LST) for Bitcoin. This is our first major step into Solana DeFi, beginning with @JupiterExchange's JLP integration.
Stay tuned as we… pic.twitter.com/dVRzovq2OE
The token aims for an annual percentage return (APR) of around 12%, significantly higher than typical L2 BTC staking rewards, but it involves additional risk through hedging strategies within Jupiter’s liquidity pool.
Simultaneously, Bitcoin-native L2 solutions like Core Chain and Spiderchain are exploring BTC staking models, similar to Ethereum’s proof-of-stake systems, while Ethereum’s EigenLayer restaking protocol has added support for wrapped Bitcoin, further driving competition for BTC liquidity across blockchains.
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