Mapping the 8 Dominant Bitcoin Yields in 2025

Introduction

In 2025, Bitcoin has evolved far beyond its roots as a speculative asset — it’s now a cornerstone of corporate treasuries, hedge funds, and sovereign nations. Yet, with over 19.8 million BTC in circulation, less than 2% is actively deployed on-chain, leaving the majority idle and unyielding. As investors seek real, Bitcoin-denominated returns that preserve upside while generating passive income, a critical challenge emerges:

Which yield streams are genuinely paid in BTC, and which hide leverage loops or token‑subsidised mirages?

This article traces the capital flow — from trading desks to tokenization layers — and uncovers the eight dominant Bitcoin yield strategies shaping the landscape in 2025.

8 Dominant Bitcoin Yields in 2025

A Solv collaborative research on the eight dominant strategies

Research contributed by: @RyanChow_DeFi, @Will42W, @myanTokenGeek, @EvaBinary, @SolvIntern @arndxt_xo, @catwychan, @picnicmou

Each strategy is packaged into Solv vaults, designed to deliver institutional-grade, market-neutral, and real BTC yields — all on-chain.

Bitcoin Yields: Traditional Foundations

Traditional strategies — Quant & Basis Trading, DEX Liquidity Provisioning, and Collateralized Lending — tap into the core mechanics of crypto markets: arbitrage spreads, swap fees, and lending interest.

These approaches are liquid, battle-tested, and form the bedrock of institutional treasury deployment. By staying market-neutral, auto-compounded, and BTC-denominated, they offer consistent returns with low drawdowns, anchoring Solv’s Core strategy.

1. Quant & Basis‑Trading

Overview

Capture small, predictable spreads between spot and derivatives markets by providing liquidity on decentralized venues and hedging the directional exposure of other other assets off-chain, locking in funding rates and trading fees without directional risk.

Solv’s Approach:

• Deposits are allocated to high-liquidity trading pools on-chain.
• A paired long/short position neutralizes market exposure.
• An institutional risk desk enforces a strict ≤3% drawdown limit, pausing if breached.

Our partners include: @ethena_labs, @GMX_IO, @JupiterExchange

2. DEX Liquidity‑Provisioning

Overview

Solv’s DEX LP allows users to provide BTC (or its wrapped equivalent) alongside a stable asset in automated market-maker (AMM) pools to earn swap fees from trading activity.

Solv’s Approach:

• BTC is deployed into high-volume pools with optimized fee tiers.
• Fees and incentives are auto-compounded into the SolvBTC vault, minimizing impermanent loss risks.

Our partners include: @AerodromeFi, @CurveFinance, @KodiakFi, @KyoFinance, @LFJ_gg, @Lista_DAO, @PancakeSwap, @Uniswap

3. Collateralized BTC Lending

Overview

This strategy enables users to earn passive income on their Bitcoin by supplying it to integrated lending protocols across multiple chains.

Solv’s Approach

• BTC deposits are tokenized and made DeFi-compatible
• Solv integrates with a broad set of lending protocols across chains
• Your BTC is lent directly into these markets to capture real borrower demand
• Interest collected flows back to depositors as passive, yield-bearing BTC

Our partners include: @avalonfinance_, @BenqiFinance, @Dolomite_io, @eulerfinance, @MorphoLabs, @VenusProtocol

Bitcoin Yields: Present Day Innovations

Present-day strategies — Native BTC Staking, BTC Liquid Staking Tokens (LSTs), and Yield Tokenization — extend Bitcoin’s utility into proof-of-stake (PoS) ecosystems and yield-splitting protocols.

These approaches layer additional income streams, capturing staking rewards, DeFi yields, and fixed/floating rate spreads, transforming passive BTC into composable capital across chains.

4. Native BTC Staking

Overview

Stake BTC directly on PoS networks to secure the blockchain, earning network rewards and ecosystem incentives.

Solv’s Approach

• xSolvBTC is minted as a liquid staking token for staked BTC, underlying Bitcoin is staked to secure PoS networks through Babylon, enabling Bitcoin to participate in proof-of-stake security without leaving its native form or being bridged.
• SolvBTC.CORE is a liquid staking token (LST) that lets you stake your Bitcoin on the Core Network and earn rewards, without locking up your funds.

Our partners include: @babylonlabs_io, @Coredao_Org

5. BTC Staking via Liquid Staking Tokens (LSTs)

Overview

BTC holders can convert staked BTC into a liquid staking token (LST) like xSolvBTC, then redeploy it into DeFi for layered yields across chains.

Solv’s Approach

• Vault issues an LST pegged 1:1 to underlying staked BTC.
• That LST can be auto‑deployed into liquidity pools or lending markets to earn supplemental returns.
• Users earn a yield coming from native staking APR and on‑chain fee farming

Our partners include: @avax, @berachain, @build_on_bob, @rootstock_io, @SeiNetwork, @solana, @Soneium, @Starknet, @taikoxyz

6. Yield Tokenization

Overview

Split a yield‑bearing asset into two tradable pieces: one locking in principal value, the other representing future income — letting you choose fixed or floating yield exposure.

Solv’s Approach

• Integrates with protocols to split yields.
• Users can elect to hold principal‑only tokens for guaranteed yield, or yield‑only tokens to speculate on rate changes.

Our partners include: @EquilibriaFi, @pendle_fi, @Penpiexyz_io, @Tranchess