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    Solv launches Bitcoin staking token on Solana

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    Solv Protocol is set to launch a Bitcoin staking token, SolvBTC.JUP, on Solana, aiming to attract Bitcoin holders. Stakers can profit from transaction fees on Jupiter Exchange, a highly-rated decentralized exchange in the Solana network. With a projected annual return of around 12%, Solv offers higher returns compared to other platforms. To counteract volatile token prices, Solv employs a delta neutral strategy to protect traders’ net open interest on centralized exchanges. Meanwhile, other Bitcoin-focused platforms and the prominent restaking protocol on Ethereum, EigenLayer, are also moving to court Bitcoin users.

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    Solv Protocol is trying to attract Bitcoin holders with a new Bitcoin staking token on Solana. Lots of new ways to earn money from Bitcoin are popping up in the Bitcoin network and this is creating competition amongst other networks like Ethereum and Solana to secure Bitcoin users.

    This new token is named SolvBTC.JUP and it’s created to earn Bitcoin-based profit from transaction fees on Jupiter Exchange, one of Solana’s top-rated decentralized exchanges. This new token isn’t fully launched but it’s part of Solv’s continuous effort to boost Bitcoin’s role in decentralized finance.

    Solv is aiming to offer an annual return of about 12% on Bitcoin, which is much better than the usual low single-digit returns offered by Bitcoin staking on other platforms. The higher yield compensates for additional risks of the ever-changing token price in Jupiter’s liquidity pool.

    To balance out the risk of such fluctuations, Solv is using a delta neutral strategy, which involves guarding traders’ net open interest on centralized exchanges. Jupiter is one of the busiest decentralized exchanges on Solana with about $1.3 billion in total value locked, according to DefiLlama.

    Other Bitcoin-focused platforms like Core Chain, Babylon, and Spiderchain are also considering offering Bitcoin-native staking. This is similar to proof-of-stake networks like Ethereum, where Bitcoin stakers secure the networks in exchange for rewards by locking up Bitcoin as collateral.

    EigenLayer, the largest restaking protocol on Ethereum, is also attempting to attract Bitcoin holders by accepting wrapped Bitcoin as restaking collateral. Restaking essentially involves using a token, which is already held as collateral with a validator for rewards, to secure other platforms at the same time.

    Source: Cointelegraph

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