Alisa Davidson
Printed: Might 16, 2025 at 9:00 am Up to date: Might 16, 2025 at 8:45 am
Edited and fact-checked:
Might 16, 2025 at 9:00 am
In Transient
Solv Protocol introduced the launch of SolvBTC.AVAX, a yield-generating Bitcoin token designed to leverage DeFi infrastructure and provide returns supported by RWAs.
Bitcoin staking platform, Solv Protocol introduced the launch of SolvBTC.AVAX, a yield-generating Bitcoin token designed to leverage decentralized finance infrastructure and provide returns supported by real-world belongings. Developed by a collaboration involving Solv, Avalanche, Elixir, Euler, Re7 Labs, LFJ, and Balancer, the initiative is supported by $4 billion in institutional belongings managed by BlackRock and Hamilton Lane. The introduction of SolvBTC.AVAX is positioned as a notable improvement in extending RWA-backed yield mechanisms to Bitcoin holders.
“This isn’t simply one other yield product; it’s a framework for aligning Bitcoin with the broader monetary world,” mentioned Ryan Chow, Founding father of Solv Protocol, in a written assertion. “By linking BTC to real-world financial cycles and uncorrelated belongings like Treasuries and personal credit score, we’re delivering scalable, clear infrastructure that redefines what Bitcoin can do,” he added.
Bitcoin at present holds a market capitalization exceeding $1.3 trillion, but a considerable majority—greater than 94%—of BTC stays inactive and doesn’t generate yield. On the identical time, the real-world asset (RWA) sector has expanded, rising tenfold since early 2022 and now representing over $22.1 billion in on-chain collateral, together with greater than $6 billion in tokenized U.S. Treasuries. This distinction underscores a rising rationale for integrating Bitcoin with RWA-based yield methods.
With the introduction of SolvBTC.AVAX, Solv Protocol goals to attach Bitcoin to the quick increasing RWA ecosystem. By incorporating tokenized monetary devices resembling U.S. Treasuries and personal credit score—originating from institutional gamers like BlackRock and Hamilton Lane—the platform seeks to reposition Bitcoin as a yield-generating part inside the broader monetary panorama. Using a modular structure and supported by contributors resembling Elixir and Avalanche, SolvBTC.AVAX represents a brand new strategy to institution-grade infrastructure for enabling RWA-backed returns on Bitcoin.
SolvBTC.AVAX: Understanding Its Performance And Yield Mechanism
SolvBTC.AVAX consolidates a complicated multi-protocol yield mechanism right into a single Bitcoin-based token designed to generate returns, streamlining institutional entry to real-world asset publicity. The method begins with changing Bitcoin into deUSD, a stablecoin pegged 1:1 to real-world belongings resembling U.S. Treasuries and personal credit score devices, with asset backing facilitated by Elixir and sourced from establishments like BlackRock and Hamilton Lane. This deUSD is then strategically cycled by Euler to extend RWA publicity. Threat oversight is dealt with by Re7, which curates and displays the related Euler markets, together with these for SolvBTC, deUSD, and sdeUSD on Avalanche.
Further capital is allotted to liquidity swimming pools managed by LFJ and Balancer, aiming to generate returns by swap charges and AVAX-based incentives. Solv automates the minting, borrowing, compounding, and distribution capabilities, whereas Avalanche serves because the underlying community to make sure environment friendly and low-cost transaction execution.
“Avalanche’s scalable infrastructure makes it a great basis for high-throughput, modular methods like SolvBTC.AVAX,” mentioned Eric Kang, Head of DeFi at Ava Labs, in a written assertion. “By bridging Bitcoin with real-world asset publicity by tokenized Treasuries and personal credit score, this integration brings new utility to BTC and marks an necessary step in aligning crypto with conventional monetary markets,” he added.
Via the rollout of SolvBTC.AVAX, Solv Protocol is working to combine Bitcoin with the rising real-world asset (RWA) ecosystem. This initiative consists of the usage of tokenized devices like U.S. Treasuries and personal credit score, sourced from established establishments together with BlackRock and Hamilton Lane. The objective is to place Bitcoin as a yield-generating component inside the broader monetary system. Constructed on a modular framework and supported by entities resembling Elixir and Avalanche, SolvBTC.AVAX introduces a brand new mannequin for delivering institution-focused infrastructure that helps RWA-based returns on Bitcoin.
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About The Writer
Alisa, a devoted journalist on the MPost, makes a speciality of cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising developments and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.
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Alisa Davidson
Alisa, a devoted journalist on the MPost, makes a speciality of cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising developments and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.
Extra articles
