Solv Protocol launches staking token to bring Bitcoin yields to Solana

Solv Protocol has introduced ‘SolvBTC.JUP’, a new Liquid Staking Token that allows Bitcoin investors to earn returns through Solana’s decentralized finance ecosystem.

SolvBTC.JUP, although only in its pilot phase, offers Bitcoin holders a way to earn 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 the Solv Protocol. In return, users receive SolvBTC.JUP, which represents the Bitcoin they staked.

This token generates returns over time based on Solv’s participation in the Jupiter Liquidity Provider Pool. Jupiter Exchange, a decentralized perpetual trading platform, allows liquidity providers to earn fees based on trading activity.

Solv’s strategy minimizes risks by avoiding exposure to market movements while maintaining Bitcoin stake.

What does this mean?

For Bitcoin holders unfamiliar with DeFi, staking means temporarily locking up tokens to support a network or participate in a trading pool. In return, staked tokens earn rewards, usually in the form of the same token.

SolvBTC.JUP allows Bitcoin holders to participate in this system on the Solana network without giving up their Bitcoin risk. With an expected return of 12%, according to the press release, SolvBTC.JUP builds on Solv’s previous success in offering Bitcoin staking on other platforms.