Introducing SolvBTC.JUP: A Gateway to Solana’s DeFi Ecosystem for Bitcoin Holders

At Solv Protocol, we’re excited to announce SolvBTC.JUP, our pilot product and first step into integrating Solana’s DeFi ecosystem into our Staking Abstraction Layer (SAL). . This pilot phase is an initial rollout, allowing us to gather feedback, fine-tune the product, and ensure smooth scaling before full deployment.

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.

What is SolvBTC.JUP?

SolvBTC.JUP is a Liquid Staking Token (LST) for Bitcoin, designed to accrue yield denominated in BTC through a strategy integrated with one of Solana’s top DeFi platforms, Jupiter Exchange. Here’s how it works:

• Deposit BTC/Wrapped BTC to mint SolvBTC, which is then used to create SolvBTC.LSTs.
• In return, they receive SolvBTC.JUP, which represents their staked BTC and accrues yield over time.

This product allows Bitcoin holders to earn yield without sacrificing liquidity or exposure to Bitcoin. Yields are generated from Solv’s strategy of participating in the Jupiter Liquidity Provider (JLP) Pool on Solana, while mitigating risk through hedging net open interest on centralized exchanges.

Note: SolvBTC.JUP will be accessible only to institutional users or partners as part of our controlled pilot phase. This approach helps us refine the product, ensuring it’s fully optimized and secure before wider release

Why Solana? Why Jupiter?

Solana is a DeFi powerhouse, renowned for its low fees and fast transactions, making it an ideal platform for yield generation. Through Jupiter Exchange, one of Solana’s top decentralized perpetual exchanges with over $100 billion in trading volume, SolvBTC.JUP unlocks high APYs for Bitcoin holders.

As of this writing, the JLP Pool offers an APY of 28%. With Solv’s hedging strategies, we expect yields of approximately 12% in BTC, offering a stable and risk-adjusted return for Bitcoin holders.

How Does SolvBTC.JUP Generate Yield?

SolvBTC.JUP generates yields by participating in the JLP Pool, where liquidity providers earn fees from trading activities. Importantly, Solv hedges net open interest on centralized exchanges, ensuring that returns come from trading fees and are not affected by market volatility or trader positions.

This strategy offers Bitcoin holders a unique opportunity to earn stable yields in BTC, as opposed to speculative yield-bearing strategies.

Solv has already been successfully running a similar CeDeFi strategy on GMX (Arbitrum) since October 2023, yielding 9.5% returns consistently. Now, with SolvBTC.JUP, we’re extending this approach to the Solana ecosystem, scaling opportunities for Bitcoin holders to earn.

Expanding BTC Yield Horizons through our SAL

SolvBTC.JUP is part of our commitment to expanding BTC yield opportunities across blockchain ecosystems through our Staking Abstraction Layer (SAL). By leveraging our SAL, we aim to provide Bitcoin holders with access to diverse blockchain ecosystems, unlocking new yield opportunities while maintaining the security and flexibility of their BTC holdings.

Stay tuned as we continue to evolve our SAL and explore new ecosystems to offer innovative, yield-generating products for Bitcoin holders, ensuring security and flexibility for their BTC holdings.