The First Project Report: Exploring Bitcoin Staking Protocol Solv Protocol
Since the emergence of Bitcoin (BTC) in 2009, it has been mainly used for asset transfer and storage. With the rise of decentralized finance (DeFi) on Ethereum (ETH) in 2017-2018, the application of Bitcoin seems to have been overlooked. In the past few years, the ecosystem of applications and decentralized platforms has flourished, making DeFi or BTCFi centered on Bitcoin possible. BTCFi has now developed into a constantly evolving world, providing efficient payment solutions, smart contract sidechains, alternative token protocols, and even technology for issuing NFTs based on Bitcoin.
In the rapid development of the BTCFi track, Solv Protocol has shifted its focus to financial innovation related to Bitcoin, launching SolvBTC, a full-chain Bitcoin asset that aims to provide more opportunities for Bitcoin holders. At the same time, Solv Protocol has also launched the Staking Abstraction Layer (SAL), which simplifies and standardizes the cross-chain Bitcoin staking process, making it easier for users and developers to participate.
As the native token of the Solv Protocol ecosystem, SOLV will officially launch on The First trading platform on February 13, 2025, providing users with more opportunities to participate.
What is Solv Protocol?
Solv Protocol is a project established in 2020, dedicated to bringing diversified asset classes and revenue opportunities to the cryptocurrency field. The project initially focused on minting and trading NFTs related to financial ownership certificates, lowering the threshold for creating and using cryptocurrency financial instruments. In 2024, with the booming development of the BTCFi track, Solv Protocol will focus its core on the BTCFi field, providing more choices for Bitcoin holders through innovative solutions.
Solv Protocol is committed to solving the problems of asset liquidity and low staking efficiency. Initially, it pioneered the innovative model of combining NFT and FT characteristics through the semi-homogenized token (SFT) based on the ERC-3525 standard. SFT has both the uniqueness of assets and the characteristics of high liquidity operations, which enables traditional financial instruments such as bonds, options, and Asset-Backed Security (ABS) to be digitized on the chain, greatly improving the liquidity and flexibility of on-chain assets.
With the deepening of development, Solv Protocol gradually shifts its focus to the Bitcoin staking ecosystem and proposes the concept of Staking Abstraction Layer (SAL) . The core purpose of SAL is to integrate decentralized Bitcoin liquidity and provide a unified and transparent solution for cross-chain applications. With this technology, Solv Protocol realizes the deep integration of Bitcoin assets and the DeFi field, providing more opportunities and application scenarios for Bitcoin staking.
Solv Protocol's innovation in the field of Bitcoin staking not only breaks through the limitations of the traditional financial system, but also builds a new financial ecosystem around Bitcoin. Through its native token SOLV , Solv Protocol provides holders with multiple ways to capture value and promotes the rapid development of BTCFi. SOLV has become the core of the ecosystem operation, further releasing the liquidity and utility of Bitcoin, and providing more profit opportunities for Bitcoin holders.
II. Solv Protocol operation mode
Solv Protocol provides innovative solutions for Bitcoin's liquidity release and decentralized finance (DeFi) applications through an integrated platform and Staking Abstraction Layer (SAL) technology. Its operating model revolves around four key roles, and simplifies and optimizes the Bitcoin staking process by integrating these roles.
- LST publishers (LST Issuers)
Function : Responsible for creating Liquidity Income Tokens (LST) related to Bitcoin staking. By publishing LST, users can maintain asset liquidity while staking Bitcoin and participate in DeFi and other income activities.
Advantages of Solv : As the largest Bitcoin LST publisher in the market, Solv makes Bitcoin no longer lose liquidity during the staking process, and users can flexibly manage their assets. - Staking Protocols
Function : Manage Bitcoin staking and provide a stable source of income. Integrated protocols such as Babylon and CoreDao provide users with staking income. Users pledge Bitcoin to the PoS network and receive corresponding rewards.
Solv Integration : By integrating multiple staking protocols, Solv enables users to access diverse revenue streams while simplifying the staking process. - Staking Validators
Function : Responsible for verifying the legitimacy and security of staked transactions, ensuring that the staked Bitcoin corresponds to Liquidity Income Tokens (LST), and ensuring the correctness of transactions.
Role of Solv : Solv ensures the transparency and security of the staking process through verification nodes such as Ceffu and Cobo, and protects user assets. - Yield Distributors
Function : Responsible for distributing the income generated by the pledge to LST holders, ensuring transparency and fairness of the income.
The mechanism of Solv : Solv ensures that users can fairly obtain staking rewards by integrating revenue distributors such as Pendle and Gauntlet.
Solv Protocol integrates these four key roles to build a complete Bitcoin staking ecosystem. By integrating staking protocols, LST publishers, validators, and revenue distributors, it achieves seamless interaction between the Bitcoin mainnet and the EVM-compatible chain, simplifying the staking implementation at the user and developer levels. The staking protocol provides a source of revenue for staking Bitcoin. LST publishers publish liquidity staking tokens, allowing users to maintain asset liquidity during the staking period. Validators are responsible for verifying the legality and security of staking transactions, and revenue distributors are responsible for publicly and transparently distributing the revenue generated by staking to LST holders. Provide users with a more convenient, secure, and attractive staking experience.
Solv Protocol Technology Core
Staking Abstraction Layer (SAL) is a Modularization architecture designed to enhance the security and efficiency of Bitcoin staking through interaction with the Staking Parameter Matrix (SPM) . The key components of SAL include LST generation module , transaction generation module , verification node and revenue distribution module . These modules work together to ensure the transparency, efficiency and maximization of the Bitcoin staking process, while reducing risks in cross-chain interaction and accounting processes.
Key modules
Staking Parameter Matrix (SPM) : SPM standardizes the settings and parameters of Bitcoin staking, providing developers with a simple, standard set of rules that make it easy to integrate Bitcoin staking into applications.
LST Generation Module : Simplifies the publishing process of cross-chain Liquidity Stake Tokens (LST), enabling LST publishers to quickly and conveniently publish and distribute liquidity tokens to users through standardization and automation.
Transaction Generation Module : Automatically generates and broadcasts Bitcoin staking transactions, simplifying user operations and eliminating the complex steps of manually completing staking transactions.
Verification node : responsible for verifying the legitimacy and security of all pledged transactions, ensuring that transactions are confirmed after accuracy.
Profit Distribution Module : Distribute the profits obtained from staking to LST holders fairly and transparently, and ensure the accurate distribution of staking rewards according to the proportion of LST they hold.
IV. Solv Protocol team introduction and financing information
Solv Protocol currently has 21 employees. The team members' backgrounds mainly focus on computer science, economics, finance, and mathematics. They have high professional abilities in blockchain, Java, business development, Python, and business management. Overall, they promote business development through different team collaborations.
Solv has raised a total of $14 million through five rounds of financing. The latest round of financing was completed on July 31, 2023, from a series of venture capital institutions. Currently, Solv's investment partners include 25 investment institutions such as IOSG Ventures, Defi Alliance, The Spartan Group, Axia8 Ventures, CMT Digital, etc.
Economics of Solv Protocol Tokens
The maximum supply of $SOLV tokens is 9,660,000,000 (which will be increased by the governance vote through the BTC reserve fundraising plan). The initial total supply of tokens is 8,400,000,000 (86.96% of the maximum supply of tokens).
Allocate according to the maximum supply as follows:
Megadrop：6.09%；
Community Airdrop：7.39%；
Team & Advisors：11.30%；
Community Rewards & DAO Treasury：15.65%；
Community Rewards (External Partners)：7.39%；
Ecosystem Development： 7.08%；
Business Development：3.48%；
Vesting Voucher Holders：0.87%；
Private Sale Investors：25.10%；
Liquidity：2.61%；
Bitcoin Reserve Offering：13.04%；
The functions of SOLV token in Solv Protocol mainly include the following aspects:
Governance rights : Users holding SOLV can participate in protocol governance, vote to decide important parameters, profit distribution and other decisions.
Staking income : By staking SOLV, users can get the benefits of the protocol and additional rewards, especially by participating in Bitcoin staking through the Staking Abstraction Layer (SAL).
Fee discounts : SOLV holders can enjoy fee discounts when using Solv Protocol services, such as SolvBTC redemption fee reductions.
Token liquidity : SOLV provides a balance between liquidity and returns, allowing users to earn significant returns while maintaining asset liquidity.
Staking Abstraction Layer (SAL) : SOLV, as part of the SAL mechanism, simplifies the cross-chain staking process and improves the user's operation experience and revenue efficiency.
These features make SOLV an important driver of the Solv Protocol ecosystem, supporting its diverse financial products and decentralized applications.
Analysis of the Future Value of Solv Protocol
As an innovative project in the BTCFi track, Solv Protocol has successfully integrated multiple key roles in the Bitcoin staking ecosystem with its full-chain yield Bitcoin asset SolvBTC and Staking Abstraction Layer (SAL) technology, greatly reducing the threshold for customer engagement.
SolvBTC, the Bitcoin asset with full-chain returns, and the Staking Abstraction Layer (SAL) technology have successfully integrated key roles in the Bitcoin staking ecosystem, significantly reducing customer engagement barriers. Its advantages are reflected in strong security mechanisms, optimized staking processes, full-chain revenue aggregation capabilities, and efforts to promote industry standardization.
The project has received support from multiple well-known investment companies in the Crypto industry, helping Solv Protocol gain support from some well-known public chains and DeFi projects in the industry. It also demonstrates rapid growth in TVL and user numbers, reflecting the market's recognition of it. Solv Protocol creates more value for BTC holders by providing a unified liquidity entrance and diversified staking options, while promoting the development of the BTCFi ecosystem.
Currently, Solv Protocol ecological tokens will land on The First spot area, providing users with the most convenient trading channel. If you have an optimistic view of BTC's financial ecology and want to participate, you may want to experience SLOV's fast trading at The First.