Alisa Davidson
Revealed: 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 Temporary
Solv Protocol introduced the launch of SolvBTC.AVAX, a yield-generating Bitcoin token designed to leverage DeFi infrastructure and supply 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 supply returns supported by real-world property. Developed by way of a collaboration involving Solv, Avalanche, Elixir, Euler, Re7 Labs, LFJ, and Balancer, the initiative is supported by $4 billion in institutional property 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,” stated Ryan Chow, Founding father of Solv Protocol, in a written assertion. “By linking BTC to real-world financial cycles and uncorrelated property 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 comparable to 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 throughout the broader monetary panorama. Using a modular structure and supported by contributors comparable to Elixir and Avalanche, SolvBTC.AVAX represents a brand new method to institution-grade infrastructure for enabling RWA-backed returns on Bitcoin.
SolvBTC.AVAX: Understanding Its Performance And Yield Mechanism
SolvBTC.AVAX consolidates a classy 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 property comparable to U.S. Treasuries and personal credit score devices, with asset backing facilitated by way of Elixir and sourced from establishments like BlackRock and Hamilton Lane. This deUSD is then strategically cycled by way of 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.
Extra capital is allotted to liquidity swimming pools managed by LFJ and Balancer, aiming to generate returns by way of swap charges and AVAX-based incentives. Solv automates the minting, borrowing, compounding, and distribution features, whereas Avalanche serves because the underlying community to make sure environment friendly and low-cost transaction execution.
“Avalanche’s scalable infrastructure makes it an excellent basis for high-throughput, modular methods like SolvBTC.AVAX,” stated Eric Kang, Head of DeFi at Ava Labs, in a written assertion. “By bridging Bitcoin with real-world asset publicity by way of tokenized Treasuries and personal credit score, this integration brings new utility to BTC and marks an vital step in aligning crypto with conventional monetary markets,” he added.
By means of 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 purpose is to place Bitcoin as a yield-generating factor throughout the broader monetary system. Constructed on a modular framework and supported by entities comparable to 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 Creator
Alisa, a devoted journalist on the MPost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising traits and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.
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Alisa Davidson
Alisa, a devoted journalist on the MPost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising traits and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.
Extra articles
