On-chain Bitcoin reserve and staking platform, Solv Protocol announced that it has launched FragBTC, the first Solana-native, yield-generating Bitcoin solution. This development, in collaboration with the multi-chain layer Zeus Network and the liquid restaking protocol Fragmetric, aims to enable Bitcoin holders on Solana to participate in decentralized finance (DeFi).
The yield for FragBTC is driven by SolvBTC.JUP, a Solv Bitcoin yield strategy that generates Bitcoin-denominated returns from JLP on Jupiter Exchange. This approach reduces market fluctuation risks associated with centralized exchanges (CEXs), offering risk-adjusted returns tailored to the varying risk profiles of Bitcoin holders. Additionally, Solv Protocol has become the first Institutional Guardian for Zeus Network, helping to bring native Bitcoin to Solana, with other guardians such as Mechanism Capital, Animoca Ventures, and Anagram also involved in the initiative.
Ryan Chow, CEO and co-founder of Solv Protocol, explained that Bitcoin yields have historically been limited and dispersed across centralized finance (CeFi) platforms, with very little availability in DeFi.
“That’s why bringing Solana-native, real Bitcoin yield to Solana is a significant milestone for us, powered by our SolvBTC.JUP as the underlying yield engine,” said Ryan Chow in a written statement. “With Solana being one of the most vibrant and composable DeFi ecosystems, we’re excited to contribute to its growth and unlock new yield opportunities for Bitcoin holders,” he added.
The fragmented nature of the BTCFi landscape has made it challenging for users to access consistent and reliable Bitcoin yield, as noted by Sang Kim, COO of Fragmetric Labs.
“Solv Protocol addressed BTC fragmentation by creating a unified solution for real, sustainable BTC yield,” said Sang Kim in a written statement. “We’re proud to partner with Solv Protocol to bring this unified yield directly to the Solana ecosystem and lead the charge in unlocking Bitcoin’s true value,” he added.
Bringing Bitcoin To Solana With Enhanced Security For Protocol And Users
Bringing Bitcoin to high-performance chains like Solana has traditionally depended on centralized custodians or cross-chain wrappers, which can present security risks and inconsistent standards for users. These methods often lack transparency and verifiability, creating trust issues and hindering institutional adoption of Bitcoin in decentralized finance (DeFi).
Therefore, introducing Bitcoin into the Solana ecosystem in a native and standardized manner will improve security for both the protocol and its users, according to Justin Wang, the founder of Zeus Network.
“On Solana, every incoming Bitcoin transaction can be verified, validated, and locked by the blockchain itself,” said Justin Wang in a written statement. “Therefore, the design of an institutional guardian will be a crucial component for enabling future institutional Bitcoin liquidity to flow into Solana via Zeus Network,” he added.
Solv Protocol, an on-chain Bitcoin reserve bridging traditional finance (TradFi), centralized finance (CeFi), and DeFi, aims to unlock the full potential of over $1 trillion in Bitcoin assets through its SolvBTC platform. By introducing SolvBTC.LSTs (Liquid Staking Tokens), Solv allows both retail and institutional investors to generate returns on their Bitcoin, transforming it from a dormant asset into one that produces yield.
Recently, Solv Protocol secured $10 million in funding for its Bitcoin reserve initiative, moving it closer to its goal of creating a $100M on-chain Bitcoin reserve.
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