Introduction
SolvBTC is a universal Bitcoin reserve token designed to unlock the full potential of over $1 trillion in Bitcoin assets. SolvBTC is fully backed 1:1 by the underlying Bitcoin in both native and wrapped forms. SolvBTC is minted by depositing either BTC or other wrapped Bitcoin assets, making it easy for Bitcoin holders to convert their assets into a more flexible, DeFi-compatible form. As a “Bitcoin Reserve for Everyone,” SolvBTC enables Bitcoin holders to move their assets freely and securely between different blockchain ecosystems, eliminating the silos that currently restrict liquidity flow. With SolvBTC, Bitcoin holders can seamlessly participate in DeFi on multiple chains without worrying about fragmented liquidity or the risks associated with individual wrapped BTC assets.
Tiered Reserve System
To manage the risks associated with different types of wrapped BTC assets, Solv Protocol employs a tiered reserve system. This system classifies reserve assets into two main categories:
Core Reserve Assets: These are the most secure and liquid assets, forming the foundation of SolvBTC’s reserve. Examples include:
Bitcoin (BTC): The native Bitcoin asset.
BTCB (Binance’s wrapped Bitcoin): A custodial solution with high liquidity.
cbBTC (Base’s wrapped Bitcoin): A custodial solution with high liquidity.
These core assets offer users a high level of security and liquidity, ensuring they can trust the backing of their SolvBTC holdings.
Isolated Reserve Assets: SolvBTC minted using isolated reserve assets and its collateral are segregated.
