What is the Solv Protocol? And why was it chosen to manage BTC strategies on Binance?


In a rare move in the world of centralized finance (CeFi), Binance announced the selection of Solv Protocol as the exclusive fund manager for Bitcoin (BTC) strategies within the Binance Earn platform, offering annual percentage yields (APY) of up to 2.5% directly to users. This partnership represents a significant shift in how decentralized finance (DeFi) is integrated into the infrastructure of major centralized platforms.


What is the Solv Protocol?

The Solv Protocol is a decentralized finance protocol that specializes in creating and trading structured financial products on-chain, such as Fixed Income Tokens and yield funds. Solv provides users and financial managers the ability to create financial instruments similar to bonds, but in a fully digital and transparent manner on the blockchain.


The main features of the protocol:

  • The ability to tokenize yields as tradable assets.

  • Offering investment tools similar to those available in traditional markets but in a DeFi manner.


  • A flexible structure that allows integration with centralized platforms like Binance.

Staking BTC on Binance using SolvBTC

Through this partnership, users can now stake Bitcoin directly within Binance via the BTC Staking product offered by Solv in the Advanced Earn > On-Chain Yields section. There is no need to use external wallets or pay gas fees or cross bridges between networks. The process is completed entirely through Binance, providing an easy and seamless experience.

  • Annual yields of up to ~2.5% (varies by tranche).


  • Additional rewards in SOLV currency.


  • Yield distribution occurs at the maturity date.


  • Yield accumulation starts daily after subscription.


  • Early withdrawal results in the loss of accumulated yields.


Why is this partnership important?

Typically, centralized platforms like Binance retain the yield infrastructure internally due to custody, compliance, and liquidity constraints. Therefore, choosing Solv as an external yield manager is a strategic move that demonstrates:

  • Binance's trust in Solv's infrastructure.


  • The growing trend towards the integration of CeFi and DeFi.


  • Access to DeFi yields in a simplified and secure manner for CeFi users.

Summary

The Solv Protocol redefines how investment products are offered on the blockchain and acts as a true bridge between traditional and decentralized finance. Its partnership with Binance represents the beginning of a new era of innovation in the digital asset world, where users get the best of both worlds: CeFi's ease and DeFi's transparency.