Solv Protocol has launched a staking abstraction layer, which is committed to integrating multi-chain BTC liquidity

The Solv Protocol, a Bitcoin staking protocol, recently completed a new round of financing totaling $11 million, bringing its total financing amount to $25 million. The protocol's staking scheduling center has gathered over 20,000 BTC in liquidity, including several asset pools such as SolvBTC.BBN, SolvBTC.ENA, and SolvBTC.CORE.

Solv Protocol recently proposed the concept of (Staking Abstraction Layer, SAL), which aims to further integrate BTC liquidity scattered across various chains. The core goal of this concept is to provide a unified and transparent application standard for BTC assets in multiple scenarios such as Ethereum EVM, BNBChain, CeDeFi, etc.

Although there are arguments that Solv Protocol is classified as part of an ecosystem, in reality, Solv is positioned closer to a parallel relationship as a platform with a lot of liquidity. Although some platforms can lock the native BTC assets through cryptographic algorithms to provide a certain security consensus for platforms such as Solv, Solv is the main body that actually provides liquidity.

The SAL staking abstraction layer consists of a series of smart contracts designed to simplify the process of user interaction with the Bitcoin staking protocol and provide a more convenient staking experience. This abstraction layer defines a complete set of functions, including LST asset issuance, distributed node staking verification, reward distribution, and penalty rules. This design allows for the participation of multiple parties, such as different LST issuers, qualified asset storage entities, and various DeFi protocols.

From a business perspective, the Solv Protocol targets the issue of Bitcoin liquidity being overly dispersed, attempting to accelerate the aggregation and application circulation of BTC assets by building a liquidity aggregation service layer. This initiative is not only aimed at expanding the BTC liquidity pool but also at addressing the particularities of the BTCFi track.

The use cases of BTC assets are extremely wide, from DeFi wrapped versions to raw assets stored in cold wallets, to assets flowing into various ETF funds. Solv Protocol's goal is to create a unified Bitcoin asset scheduling platform, which not only involves on-chain operations, but also needs to coordinate resources in various fields and deal with complex relationships to finally achieve the "on-chain" of related assets.

The Staking Abstraction Layer proposed by Solv Protocol aims to provide a unified circulation and application standard for BTC assets in different environments (on-chain and off-chain), thereby unlocking the potential and value of BTCFi. Considering that the ETH staking rate on well-established smart contract platforms like Ethereum remains at around 28%, significantly increasing the decentralized BTC staking rate and fully leveraging its potential in asset yield generation is still a long way off.