Today is another episode of the plain-speaking series: What is the Solv Protocol?
In simple terms, @Solv Protocol is a protocol that allows you to earn money with Bitcoin. Just like you earn interest by depositing money in a bank, Solv enables Bitcoin holders to earn returns by staking Bitcoin, and it's very easy to operate, unlike other products that have complicated pages and a lot of jargon that can be ambiguous when translated.
How it works:
Staking Bitcoin: You can "deposit" Bitcoin into Solv's smart contract, and the system will give you corresponding yield certificates (similar to electronic proof like a passbook).
Earning returns: These Bitcoins will be used for various DeFi operations such as lending and liquidity mining on-chain, with the generated interest distributed to you.
Cross-chain compatibility: It not only supports native Bitcoin but also supports "wrapped" versions of Bitcoin on other chains, offering high flexibility.
Why is it special?
Not dependent on banks: In traditional finance, you have to trust banks to manage your finances, while Solv relies on code to execute automatically, ensuring transparency and security.
Liberating Bitcoin liquidity: Previously, Bitcoin could only be held while waiting for price increases; now, you can hold it while also earning interest.
For example: If you have 1 Bitcoin and deposit it in Solv, you might earn an additional 5% annually (subject to market conditions), which is like earning half the price of a hot pot meal without having to worry about operations, and without the risk of losing your principal by messing around on your own.
