Solv Is Adopting the Chainlink Platform To Enhance the Liquidity, Utility, and Transparency of Staked Bitcoin

6 min read3 days ago

We’re excited to announce a major enhancement to our Staking Abstraction Layer (SAL) through our adoption of the Chainlink Platform. As a leading Bitcoin staking protocol, Solv Protocol is adopting Chainlink’s industry-standard CCIP, Price Feeds, and Proof of Reserve across Arbitrum, BNB Chain, and Ethereum. These services will significantly enhance the liquidity, utility, and transparency of SolvBTC, SolvBTC.BBN, and SolvBTC.ENA. We’re excited to announce.

By entering the Chainlink ecosystem, staking platforms become easily composable with a wide array of DeFi protocols in the Chainlink ecosystem — such as lending/borrowing markets, stablecoins, DEXs, derivatives protocols, and more. This helps them drive user adoption and increase Total Value Locked (TVL).

CCIP Will Connect Expand Staked Bitcoin Liquidity Cross-Chain

DeFi users and protocols must be able to access SolvBTC, SolvBTC.BBN, and SolvBTC.ENA from across the multi-chain landscape. Making these assets easily transferable across chains using CCIP significantly enhances their liquidity and utility.

CCIP is built with defense-in-depth security and is powered by Chainlink’s industry-standard oracle networks. Chainlink CCIP is the only interoperability protocol with level-5 cross-chain security and features additional layers of protection via the first-of-its-kind Risk Management Network and transfer rate limits.

CCIP offers a variety of benefits:

Defense-in-depth security — CCIP’s consensus layer is powered by Chainlink Decentralized Oracle Networks (DONs), infrastructure that has secured over $60 billion in DeFi TVL at its peak and enabled over $16 trillion in onchain transaction value since the start of 2022. Each CCIP transfer is redundantly validated by multiple DONs, including an independent Risk Management Network that continuously monitors and validates the behavior of CCIP — a wholly unique concept in cross-chain interoperability that builds upon established engineering principles (N-version programming).
Secure Token Transfers — CCIP simplifies the process of transferring tokens cross-chain by providing audited token pool contracts that abstract away the complexity of cross-chain validation, without imposing vendor lock-in on token issuers. CCIP token transfers also feature additional security functions such as configurable rate limits and reliability features such as Smart Execution that help ensure reliable transaction execution on the destination chain, regardless of blockchain network congestion.
Arbitrary Messaging — CCIP’s empowers developers with the ability to create cross-chain native applications through the transfer of arbitrary data, encoded as bytes, between smart contracts on different blockchains. Cross-chain messaging enables numerous use cases from cross-chain NFT transfers to cross-chain lending use cases.
Programmable Token Transfers — CCIP enables the transfer of value (via tokens) cross-chain along with data instructions informing the receiving smart contract on what to do with those tokens once they arrive on the destination chain. Through cross-chain programmability, CCIP can condense a complex set of actions involving multiple users, blockchains, and assets down to a single atomic cross-chain instruction.
Extendable and future-proof — CCIP is built to be future-proof for developers, where future improvements can continue to be made, including the integration of new blockchain networks, the onboarding of additional tokens, and the incorporation of new defense-in-depth approaches to security.

Price Feeds Will Enable Secure Markets Around Solv Assets

To enable secure markets around SolvBTC, SolvBTC.BBN, and SolvBTC.ENA, DeFi protocols require fresh, reliable, accurate, and tamper-proof price data accessible onchain. Fair market asset prices should reflect a volume-weighted average from all trading environments, including onchain and offchain markets. Thus, we needed decentralized oracle network infrastructure to fetch, aggregate, and deliver financial market data onto the Arbitrum, BNB Chain, and Ethereum blockchains.

We selected Chainlink Price Feeds because they provide access to:

High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.
Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.
Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
Reputation System — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.

Proof of Reserve’s Secure Mint Will Enhance User Confidence

Integrating Proof of Reserve’s Secure Mint capability directly into Solv’s minting function will help protect against malicious minting attacks by embedding cryptographic guarantees that new tokens minted are fully backed by reserves. Additionally, delivering up-to-date data verifying the reserves of staked assets on Solv increases user confidence and drives adoption.

Key features of Chainlink Proof of Reserve include:

Programmatic Utility — By bringing reserve data onchain, protocols can build automated logic around the reserve data backing an asset thus building new use cases and features such as automated onchain risk management.
Confidence — With secure minting, Proof of Reserve protects against malicious minting by embedding cryptographic guarantees that new tokens minted are backed by reserves, helping to prevent infinite mint attacks.
Decentralized — As the industry-standard solution, Chainlink Proof of Reserve Feeds are decentralized at the data source and oracle node level, eliminating central points of failure in the sourcing and delivery of external data to blockchains.
Transparent — Chainlink Proof of Reserve Feeds can be monitored by anyone in real-time, allowing any user to independently verify asset collateralization, bringing increased transparency and trust to onchain products.

“We’re thrilled to adopt Chainlink’s industry-standard solutions into Solv,” said Ryan Chow, Co-founder & CEO at Solv. “By leveraging CCIP, Price Feeds, and Proof of Reserve, we’re enhancing the liquidity, utility, and transparency of staked Bitcoin on our platform, accelerating the growth of BTCFi.”

“Chainlink CCIP, Price Feeds, and Proof of Reserve will support the adoption of Solv’s staked Bitcoin across the multi-chain ecosystem,” said Johann Eid, Chief Business Officer at Chainlink Labs. “As one of the largest staked Bitcoin protocols, leveraging the Chainlink Platform will help accelerate the growth of Solv and the wider BTCFi economy.”

About Chainlink

Chainlink is the universal platform for pioneering the future of global markets onchain. Chainlink has enabled over $16 trillion in transaction value by providing financial institutions, startups, and developers worldwide with access to real-world data, offchain computation, and secure cross-chain interoperability across any blockchain. Chainlink powers verifiable applications and high-integrity markets for banking, DeFi, global trade, gaming, and other major sectors.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link.

About Solv

Solv Protocol is the leading Bitcoin staking platform, powered by its innovative Staking Abstraction Layer (SAL). Through SolvBTC, a Bitcoin Reserve for everyone, we unlock the full potential of over $1 trillion in Bitcoin assets. With SolvBTC.LSTs (Liquid Staking Tokens), Bitcoin holders gain access to diverse yield opportunities without sacrificing liquidity, allowing them to seamlessly participate in DeFi ecosystems. Solv acts as a comprehensive gateway to BTCFi, paving the way for institutional and traditional funds to confidently enter the crypto space.

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