Solv Protocol x Rootstock: Unlocking Bitcoin Finance Through rBTC and SolvBTC

Despite the rising Bitcoin dominance, Bitcoin remains largely sidelined in DeFi.

At Solv Protocol, we believe it’s time to change that by exploring a collaboration with Rootstock, we aim to unlock new ways for Bitcoin holders to earn, stake, and participate in DeFi.

Here’s why this partnership with Roostock means for Bitcoin’s role in DeFi.

Why Rootstock?

Rootstock is a Bitcoin sidechain built to expand Bitcoin’s financial utility. By combining the security of Bitcoin’s Proof-of-Work (PoW) with EVM-compatible smart contracts, Rootstock offers the ideal foundation for Solv Protocol to accelerate its mission.

With this partnership, we envision:

• Native Bitcoin DeFi Expansion: Using Rootstock’s infrastructure, Bitcoin holders can unlock yield opportunities through swapping, staking, and lending, all without leaving the Bitcoin ecosystem.
• Seamless Interoperability: Rootstock’s EVM compatibility allows Solv Protocol to connect Bitcoin liquidity directly to Ethereum, Arbitrum, BNB Chain, and more. This eliminates the fragmentation seen across today’s wrapped Bitcoin assets.

What is rBTC?

rBTC (Rootstock Bitcoin) is the native token of the Rootstock sidechain, pegged 1:1 with Bitcoin (BTC).

• Think of rBTC as “Bitcoin on the Rootstock network.”
  When you want to use your BTC in Rootstock’s smart contracts, you lock your BTC and receive an equivalent amount of rBTC to interact with dApps.
• Key Functions of rBTC:

Pay for transaction fees on Rootstock (like ETH on Ethereum).

Participate in DeFi protocols for lending, staking, and yield farming directly using BTC-backed assets.

Unlock Bitcoin’s capital efficiency without moving out of the BTC ecosystem.

• How is rBTC Pegged?

It uses a two-way peg mechanism. You can convert BTC to rBTC and vice versa, maintaining the 1:1 value peg through a federated peg system or decentralized peg mechanisms.

Rootstock’s Capabilities Complements Solv’s Vision

• Smart Contract Power on Bitcoin: Rootstock enables complex, Ethereum-style smart contracts secured by Bitcoin. This means SolvBTC and xSolvBTC can integrate directly into a Bitcoin-secured DeFi environment.
• Trustless Two-Way Peg via PowPeg: Rootstock’s PowPeg bridge allows seamless, trust-minimized BTC-to-RBTC conversions. Combined with Solv, this enhances Bitcoin usecase and liquidity while maintaining Bitcoin’s value.
• A Growing DeFi Playground: From protocols like Sushi, Beefy, to Oku, Rootstock’s DeFi ecosystem is primed for SolvBTC holders to earn additional rewards while keeping Bitcoin exposure.

These would not only enhance capital efficiency for Bitcoin holders but also position Solv Protocol at the center of a more liquid Bitcoin Finance protocol.

How to get rBTC? Guide to Bridging USDC, USDT, and WETH to Rootstock via Stargate

Bridging assets to Rootstock is now simple and efficient with Stargate and LayerZero integration. You can smoothly transfer USDC, USDT, and WETH into the Rootstock ecosystem and start participating in Bitcoin DeFi.

Step-by-Step Bridging Guide

Step 1:
Go to Stargate Finance and click “Connect Wallet” (top-right corner).

Step 2:

• Select the source chain you’re bridging from.
• Choose the asset (USDC, USDT, or WETH).
• Ensure you have a balance of USDC, USDT, WETH, rBTC, or RIF on Rootstock.

Step 3:

• Select Rootstock as the destination chain.
• Enter the amount to transfer and click Transfer.

Step 4: (Optional)

• Add RBTC for gas fees by clicking ‘Add’.
• This opens Advanced Settings where you can set a custom gas amount.

Step 5:

• Approve and sign the transaction in your wallet.
• Once confirmed, the transfer will begin.

Step 6:

• Track your transfer via the UI or click through to LZScan for detailed status.

Other resources:

• How to Get rBTC — Explore multiple ways to acquire rBTC.
• Rootstock-Compatible Wallets — Check if your wallet works with Rootstock.
• Using MetaMask for Rootstock — Step-by-step guide to connect MetaMask.