Solv Protocol Partners with Copper to Enhance Security and Efficiency in Yield-Generating Strategies
We are excited to announce a strategic partnership between Solv Protocol and Copper, one of the industry’s leading digital asset custodians. This collaboration aims to leverage Copper’s innovative ClearLoop technology to provide enhanced security, reduce counterparty risks, and increase capital efficiency for participants in Solv’s yield-generating strategies.
Solv Protocol: Tokenizing High-Quality Yields
Solv Protocol is a yield aggregation and liquidity platform designed to tokenize and consolidate high-quality yields from various sources, including centralized exchanges. Through advanced strategies such as basis trading and cross-chain arbitrage, Solv offers users diverse and lucrative yield opportunities.
At the heart of Solv’s offering is the creation of “Liquid Yield Tokens,” which unlock new earning possibilities 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 across multiple chains. Recently, Solv launched a SolvBTC yield vault in collaboration with Ethena, allowing SolvBTC holders to capitalize on basis trade opportunities offered by Ethena. However, these opportunities necessitate interactions with centralized exchanges, which can introduce counterparty risks.
Integrating Copper’s ClearLoop for Enhanced Security
To address counterparty risks, Solv Protocol will integrate Copper’s ClearLoop, an off-exchange settlement (OES) solution. ClearLoop allows collateral assets for positions to be held off exchanges, providing clients with access to liquidity to trade and settle on centralized venues without exposing their assets to exchange-related risks. This integration represents the industry’s best practice to prevent counterparty risks, as evidenced by historical events such as the Mt. Gox collapse in 2014 and the more recent FTX issues.
Combined with Solv’s built-in Solv Guard, this integration ensures unparalleled security. Solv Guard acts as an intermediary layer between underlying assets and users’ assets, adding an extra security mechanism on top of smart contracts. Built on the multi-signature capabilities of the Smart Contract Wallet “Safe,” Solv Guard provides tailored permission controls and restrictions for asset managers, ensuring transactions are verified and secure.
By leveraging both Copper’s ClearLoop and Solv Guard, Solv Protocol offers industry-first security, ensuring that participants in Solv’s yield-generating strategies can benefit from high yields with robust protection. This integration allows Solv to tap into centralized exchange liquidity while providing enhanced security, reducing counterparty risks, and increase capital efficiency for Solv’s users.
Unlocking the Full Potential of BTCFi
This partnership is a significant milestone for Solv Protocol. Integrating Copper’s ClearLoop enhances SolvBTC security and efficiency, aligning with our mission to drive BTCFi growth and offer high-quality yield opportunities. SolvBTC’s initial yield vaults will be launched in collaboration with Ethena and Babylon, with the Ethena yield vault already live and available for participation.
We look forward to a safer, more efficient investing experience with Copper, unlocking BTCFi’s full potential on and off-chain.
