Bitcoin Passive Income: How to Participate in the Cross-Chain Yield Protocol Solv Protocol? A Comprehensive Guide to the Ecosystem Path

Apart from waiting for price increases, holding Bitcoin seems to have no other obvious uses. However, with the continuous development of BTCFi, more and more projects are committed to unlocking the potential value of idle Bitcoin, allowing investors to earn interest through Bitcoin. In addition to the Bitcoin re-staking project BounceBit that we introduced earlier, Binance-invested Solv Protocol also provides an option, allowing users to stake Bitcoin to obtain liquidity yield tokens SolvBTC.

Recently, Solv Protocol has actively cooperated with multiple protocols, including the popular synthetic dollar protocol Ethena, offering an annual percentage yield (APY) of over 10%. Its total locked value (TVL) has risen to the 27th largest protocol in the DeFiLlama rankings. This article will introduce the opportunities and projects that can be participated in within the ecosystem.

What is Solv Protocol?

Solv Protocol is a cross-chain yield and liquidity protocol designed to provide one-stop yield services for mainstream assets such as BTC and USDT. Its core product is the liquidity yield token SolvBTC. Users can stake Bitcoin from the following public chains on its official website to exchange for SolvBTC:

• Arbitrum: WBTC
• Merlin: MBTC
• BSC: BTCB
• Bitcoin Mainnet: Invitation-only early access

Currently, the redemption function is not yet open, but it is expected to be available this month. Users who stake to obtain SolvBTC can earn 4x XP points for every $1 daily. Additionally, participating in its yield market can earn 1x XP points for every $1 daily. Points will be redeemable for its native token $Solv in the future.

Currently, Solv Protocol's TVL has reached $1.18 billion, ranking as the 27th largest protocol in DeFiLlama's statistics, with nearly 40% growth in the past month. This year, activities on Merlin (purple below) and BSC (blue below) have dominated.

Technical Advantages

The cornerstone of Solv Protocol's products is the ERC-3525 semi-fungible token standard, an Ethereum token standard approved by the Ethereum Foundation in 2022, designed to address the shortcomings of traditional ERC-20 and ERC-721 token standards.

ERC-20 requires creating a separate contract for each combination of data structures or attributes, leading to a large demand for contracts. Although ERC-721 can distinguish digital assets, it lacks quantitative characteristics, affecting its compatibility, liquidity, and manageability. ERC-3525 introduces the <ID, SLOT, VALUE> model, making tokens with the same slot fungible in their value attributes, thereby increasing liquidity and operability.

Each ERC-3525 token has a unique identifier (ID) similar to ERC-721, ensuring the token's uniqueness. Meanwhile, each token has a value attribute, similar to the "balance" concept in ERC-20, allowing tokens to have quantitative characteristics. Through this standard, Solv Protocol can create more complex financial products such as bonds and insurance.

Project Background

According to Coinlive Wiki, the founders of Solv Protocol have rich experience in their respective fields:

• Yan Meng: Former Vice President of CSDN and an active KOL in the Crypto field.
• Will Wang: Has 20 years of experience in the financial IT field, leading the design and development of the world's largest banking accounting system based on open platform and decentralized technology.

With over $11 million in funding, investors include well-known institutions such as Binance, Blockchain Capital, and IOSG Ventures.

Security

According to the official website, Solv Protocol has passed contract audits by multiple security companies, including Quanstamp, Certik, SlowMist, Salus, and Secbit. The staking website also states that it is managed through smart contracts or trusted third-party escrow accounts to ensure user fund safety.

Additionally, Solv has implemented the Solv Guard security mechanism, which limits the flow and use of funds and enhances the standardization and transparency of smart contract security controls. Solv Guard has undergone a smart contract audit.

Project Participation Opportunities

• Cooperation with Ethena offers 10-15% APY: Staking SolvBTC on the official website will enjoy a 10-15% sUSDe yield, 6x XP points for every $1 daily, and Ethena Sats points. This cooperation marks the beginning of SolvBTC as a yield token, with multiple yield sources expected in the future. Note that redemption will be available after the second quarter of Ethena's points plan ends (i.e., 9/2 or when USDe's market value reaches $5 billion, currently $3.35 billion), and staking requires KYC with steps such as email verification, facial recognition, and uploading photos of ID, passport, or driver's license, which can be completed within 5-10 minutes.

Binance Wallet Airdrop of 150,000 $Solv: Completing the task by staking at least 0.0001 $BTCB on BSC using Binance Wallet. The event lasts until the 17th, and nearly 100,000 people have participated so far. A small amount of $BNB is required for gas fees. Detailed instructions from Binance can be referred to in the article.

Ecosystem Participation Methods

SolvBTC can interact with DeFi protocols on BNB Chain, Arbitrum, and Merlin chains to earn additional DeFi yields and cross-chain to other public chains to earn points.

Dedicated to BTCFi's public chain Core

• SolvBTC holders can bridge to the Core chain to participate in the ecosystem's DeFi protocols (such as Colend) and earn 5x points rewards (Core's points activity, Core Ignition Drop, completed its first snapshot on 5/24 and is not competitive).
• Bridge: https://free.tech/ or http://tunnel.free.tech (a minimum of 1 SolvBTC is required).
• Note: A small amount of $Core is needed as Core chain gas.

Ethereum L2 Linea

• Linea Surge activity OpenBlock LXP-L
• Bridge: https://free.tech/
• Note: Bridging from BNB to Linea cannot participate in its ecosystem protocols, such as Zerolend, because the bridged token is SolvBTC.b, but the ecosystem only supports SolvBTC.m (SolvBTC bridged from Merlin to Linea), and no DEX can swap it.

Interested readers can refer to the official documents and posts below, but note that items marked "upcoming" are not yet supported.