Solv Launches Bitcoin Liquid Staking Token On Solana

Solv, the booming Bitcoin liquid staking platform, is bringing BTC staking onto Solana.

On Oct. 17, Solv announced the initial launch of SolvBTC.JUP, a liquid staking token designed to accrue yield by providing liquidity on Jupiter Exchange, the popular Solana-based decentralized exchange aggregator.

Solv described the new token as a “pilot product” facilitating its first efforts to integrate its Staking Abstraction Layer into Solana’s vibrant DeFi ecosystem. The product is exclusively available to institutional traders during its initial rollout, with its pilot phase allowing Solv to gather feedback and fine-tune the product before its full deployment to a broader audience.

SolvBTC.JUP’s yield strategy incorporates hedging net open interest on centralized exchanges to minimize the risks associated with its liquidity-providing strategy. While the Jupiter Liquidity Provider pool currently offers yields of 28%, Solv estimates tokenholders will receive 12% in the form of BTC after adjusting for its 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 meteoric rise

Solv has posted explosive growth since the project launched a points program in April.

Solv’s total value locked (TVL) currently sits at an all-time high of $1.75 billion, up 1,425% from $114.6 million at the start of April, according to DeFi Llama. SolvBTC also ranks as the largest protocol on Bitcoin with a TVL of $528.1 million.

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