Solv Partners with Ethena Labs to Boost Bitcoin Yield
Solv Protocol emerges as a major player in DeFi. The recent partnership with Ethena allows Bitcoin owners to earn between 10-15% APY by using Ethena’s strategies through Solv’s new yield vault.
Founded in 2020, the blockchain startup from Singapore has been experimenting with various token standards that replicate the functionality of traditional financial instruments on a chain. The team was successful in multiple funding rounds, including a cool $6 million from the Nomura group.
In 2021 Solv introduced a new token standard on Ethereum: ERC-3525. Dubbed a Semi Fungible Token (SFT), this token combines features of regular ERC-2o and NFT tokens and allows tokenization of complex instruments on a chain, such as CDs, checks, bonds, options, futures and insurance policies.
More than $128.9 million was tokenized with ERC-3525 since the full adoption of the token in 2022. However, the lion's share of the current value locked on the Solv protocol is due to its recent SolvBTC product which attracted $1.17 billion in just a few months.
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SolvBTC is designed as a Liquid Yield token tailored for Bitcoin, allowing users to maximize the use of otherwise idle Bitcoin assets. By depositing Bitcoins into Solv Protocol’s vault, users can obtain SolvBTC and subsequently engage in yield-generating activities. SolvBTC is interoperable across several chains where Solv Protocol is integrated, including BNBChain, Arbitrum and Bitcoin sidechain Merlin.
Looking to enhance the earning opportunities for Bitcoin investors, Solv has recently partnered with Ethena Labs, an Ethereum-based stablecoin protocol, enabling SolvBTC to leverage yield strategies from Ethena.
One major feature of this partnership is the ‘SolvBTC Yield Vault – Ethena.’ This allows users to put their SolvBTC into a special vault that earns them extra money using Ethena’s strategies while still keeping their exposure to Bitcoin. With the integration of Ethena, users can expect an annual percentage yield (APY) on their Bitcoin between 10-15%.
Currently, there are several ways to earn additional money with SolvBTC. Users can deposit their SolvBTC into Solv’s Yield Vaults to use specific earning strategies such as BTC Staking, Restaking, and Delta-Neutral Trading Strategies. They also have the option to use SolvBTC across different decentralized finance protocols, which provides various ways to potentially increase their returns within the DeFi ecosystem.
This yield solution has become popular among Bitcoin holders, attracting an impressive total value locked of over $1.3 billion, which includes more than 17,000 Bitcoins. This achievement ranks Solv as a major player in the DeFi space.
In addition to Bitcoin, Solv offers other attractive earning opportunities. For instance, users can earn up to 28.9% APY on their USDT on the Mantle chain, or 13.26% APY on Ethereum on Arbitrum.
However, users must know that these earning opportunities require giving up control of their assets, so they must fully trust Solv Protocol’s security measures. Although Solv Protocol has not experienced security breaches, similar platforms that also offer synthetic Bitcoin have been compromised previously, resulting in significant losses for users. A good example of this is Multichain, the fallout of which we covered previously.
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