Solv Protocol launches Bitcoin staking for cbBTC holders on Base

Binance Labs-backed Solv Protocol is bringing Bitcoin staking to Base via its newly launched Coinbase-wrapped Bitcoin token, cbBTC.

On September 12, Coinbase announced that its cbBTC token is now live on Ethereum (ETH) and its layer 2 chain Base. Solv Protocol shared the news about the launch of Bitcoin (BTC) staking on Base in a press release shared with cypto.news.

The platform says that the announcement of the cbBTC token, which is backed 1:1 by BTC holdings on Coinbase, provides users on Base with another opportunity to invest their Bitcoin in the decentralized finance market.

cbBTC holders will mint SolvBTC to participate in DeFi

According to Solv Protocol, cbBTC holders can take advantage of DeFi opportunities by mining SolvBTC. Specifically, users can expand their participation in the market by converting SolvBTC into SolvBTC.BBN, a liquid staking token that provides access to greater Bitcoin staking yields.

Integrating cbBTC as a reserve asset is an important step towards consolidating Bitcoin liquidity and making the Bitcoin DeFi experience more accessible to users.

Ryan Chow, co-founder of Solv Protocol.

Coinbase’s launch of cbBTC allows BTC holders to convert their holdings into the new wrapped token, much like BTC holders do with wrapped Bitcoin (WBTC).

For cbBTC, the process will involve transferring Bitcoin from user accounts to Base or Ethereum addresses. BTC converts to cbBTC and can be used on DeFi protocols such as MakerDAO (MKR), Aave (AAVE), and Compound (COMP).

Solv Protocol contributes to this growing market with its liquid staking token, SolvBTC.

Other platforms that offer liquid staking or retaking opportunities to the Bitcoin community include Lombard Finance, Swell, and AcreBTC.