Solv Protocol has introduced ‘SolvBTC.JUP’, a new Liquid Staking Token that lets Bitcoin investors earn returns through Solana’s decentralized finance ecosystem.
Even though it is only in its pilot phase, SolvBTC.JUP offers Bitcoin holders a way to generate returns, paid in Bitcoin (BTC), by participating in Solana’s (SOL) Jupiter Exchange, according to a press release shared with crypto.news.
The process works by depositing Bitcoin into Solv Protocol. In exchange, users receive SolvBTC.JUP, which represents their staked Bitcoin.
This token accrues yield over time based on Solv’s involvement in the Jupiter Liquidity Provider Pool. The Jupiter Exchange, a platform for decentralized perpetual trading, allows liquidity providers to earn fees based on trading activity.
Solv’s strategy minimizes risks by hedging exposure to market movements while maintaining the Bitcoin stake.
What this means
For Bitcoin holders unfamiliar with DeFi, staking means temporarily locking up tokens to support a network or participate in a trading pool. In return, the staked tokens earn rewards, often in the form of the same token.
SolvBTC.JUP allows Bitcoin owners to participate in this system on the Solana network without giving up their Bitcoin exposure. With an expected return of 12%, per the press release, SolvBTC.JUP builds on Solv’s previous success in offering Bitcoin staking on other platforms.
Read the full article here
