Bitcoin Meets DeFi: A Deep Dive into the SolvBTC Ethena Vault

TLDR:

1. Put your BTC to work and earn up to 15% APY from sUSDE yields, 10x SATs and 10 XP per $1 per day in Solv Points
2. Breakdown of Yield:

• sUSDe yield
• 10x SATs
• 2.5x multiplier in Solv Points

3. SolvBTC.ena is a liquid yield token that integrates with various DeFi protocols, paving the way for a thriving BTCFi ecosystem.

Why Bitcoin?

Bitcoin, the largest cryptocurrency with a market capitalization exceeding $1.3 trillion, has long been a cornerstone of the digital asset landscape. However, it has faced challenges in finding robust yield opportunities within DeFi. The collaboration between Solv Protocol and Ethena Labs aims to change this by providing Bitcoin holders with a way to earn native Bitcoin yield while maintaining liquidity, thus revolutionizing BTCFi.

SolvBTC Ethena Vault — Strategy Overview

The SolvBTC Ethena Vault offers Bitcoin holders multiple reward streams, including sUSDe yields, Ethena SATs, and Solv Points, all while maintaining Bitcoin exposure.

The vault leverages Bitcoin as collateral to borrow stablecoins, which are then used to mint and stake Ethena’s USDe. This process captures yield from two main sources:

1. Ethereum Staking
2. Funding and basis spread earned from delta hedging derivatives positions

This allows users to earn a competitive APY of ~15% net.

Additionally, participants receive bonus token incentives from both Solv and Ethena, enhancing their returns:

1. 10x SATs per $ per day in Ethena SATs
2. 10 XP per $1 per day in Solv Points

Note:

1. The SATs are claimed by the vault’s minting address on behalf of users and proportionally distributed to SolvBTC.ena holders after the Ethena SATs Campaign concludes. The amount received at the end of the campaign will be dependent on the vesting schedule that Ethena sets for the tokens.
2. The 10x SATs are based on the USDe minted, which results in lower SATs received due to the lower loan-to-value (LTV) ratio when borrowing USD using Bitcoin as collateral.
3. Users must complete KYC to invest in this vault.

How Are Funds Kept Secure?

Security is paramount. Solv Protocol ensures the safety of users’ assets through several measures:

1. Top-tier Custody: Funds are held by custodians such as Ceffu, Copper, and Cobo, with no history of hacks or losses.
2. Solv Guard: This in-house security measure adds an extra layer of protection to smart contracts by constraining the multi-sig functionality within a specified scope, allowing interaction only with certain contracts and addresses.
3. Liquidity Verification Network: Provides a window for users to challenge the legitimacy of certain transactions or redemptions
4. Comprehensive Audits: Security and stability are fortified by extensive audits from reputable firms like Quanstamp, Certik, SlowMist, Salus, and Secbit.

SolvBTC.ena: A Liquid Yield Token

SolvBTC.ena serves as a liquid yield token, integrated with various DeFi protocols, offering maximum flexibility and accessibility for a thriving BTCFi ecosystem. Key integrations include:

1. DEXs: Provides SolvBTC.ena holders with instant liquidity and access to high-quality yields without requiring KYC.
2. Lending Protocols: Allows SolvBTC.ena holders to lend their tokens, earning extra yield while enabling borrowers to access leveraged yield positions.
3. Yield-Trading Protocols: Enables users to trade the future yields of SolvBTC.ena, manage yield exposure fluctuations, and optimize returns.

Through these integrations, Solv is not only providing immediate value to SolvBTC.ena holders but also laying the groundwork for deeper Bitcoin integration into DeFi.

BTCFi — A Reality In The Making

The SolvBTC Ethena Vault represents a significant leap forward in BTCFi. By collaborating with Ethena, Bitcoin holders can put their assets to work, earning yield while maintaining exposure to Bitcoin’s potential upside. Solv is dedicated to building a thriving Bitcoin ecosystem, starting with SolvBTC.ena.

About Solv Protocol

Solv Protocol is a revolutionary yield aggregation and liquidity platform that tokenizes and consolidates high-quality yields from various sources. At the core of Solv’s offering is the creation of “Liquid Yield Tokens,” unlocking new earning opportunities across the blockchain ecosystem. The flagship product, SolvBTC, empowers users to seamlessly participate in the growing BTCFi space, serving as the key to unlocking Bitcoin-powered DeFi on every chain.

Solv Protocol is backed by prominent investors, including Binance Labs, Blockchain Capital, Laser Digital, and others. The protocol has undergone extensive security audits by leading firms such as Quanstamp, Certik, SlowMist, Salus, and Secbit.

For more information about Solv Protocol and its products, please visit the official website at Solv Protocol.