Support a friend's work and help interpret the project foundation of $SOLV @Solv Protocol :
Basic Functions and Roles of Solv Protocol:
1. Web3 Asset Manager: Provides tools for crypto asset managers and project parties to build tokenized funds and manage DeFi yields, liquidity strategies, etc.
2. RWA Investors: Investors can participate in US Treasury bonds, credit funds, etc. through the Solv platform without intermediaries to obtain stable returns.
RWA funds are tokenized and can be freely transferred, combined, and split.
3. BTC Holders (BTCFi): BTC can be deposited into SolvBTC products to obtain DeFi/RWA portfolio returns.
4. Crypto Native Protocol and DAO: Community fund pools or DAO treasury funds can be issued through Solv to achieve transparent management and revenue automation.
For example, DAO allocates assets to ETH fixed income fund and USDT-RWA fund portfolio.
I. 2025 Timeline and Basic Background:
1. January 2025: Megadrop Event and Exchange Listing
Solv Protocol launched the Megadrop event on January 7, 2025, distributing a total of 4.7 million SOLV tokens, with participation methods including BNB staking and completing Web3 tasks. Subsequently, SOLV was listed on exchanges such as Binance, Bitget, and CoinW on January 17.
2. March 2025: SolvBTC.BNB Launched
On March 12, 2025, Solv Protocol launched SolvBTC.BNB on the BNB Chain, further expanding the on-chain revenue channels for Bitcoin. The product allows users to stake Bitcoin on the BNB Chain and earn additional rewards by participating in activities such as Launchpool.
3. SolvBTC Partners with Ozean: Introducing Bitcoin to the RWA Yield Field
In April 2025, Solv Protocol partnered with Ozean to launch xSolvBTC, enabling Bitcoin holders to earn real-world asset returns through Ozean's RWA infrastructure. xSolvBTC is a transferable Bitcoin staking token that allows users to participate in traditional financial asset investments such as government bonds and private credit on-chain. The expected annualized yield is between 5% and 10%, depending on the degree of participation and market conditions.
4. May 2025: Appearance at the TOKEN2049 conference in Dubai
At the TOKEN2049 conference in Dubai in May 2025, Solv Protocol announced its first Shariah-compliant Bitcoin financial product, aimed at attracting sovereign wealth funds and institutional investors in the Middle East. The product is certified by Amanie Advisors.
5. Continued Expansion of RWA Products
Solv Protocol's RWA product line continues to expand, and it has launched a variety of tokenized funds covering traditional financial assets such as US Treasury bonds and corporate bonds. As of now, the total locked-in value (TVL) of Solv RWA is approximately US$950,000, mainly deployed on the Mantle network.
6. Security Incidents and Responses
On January 1, 2025, Solv Protocol's official Twitter account suffered a security breach, and hackers posted a fake token contract address. The team quickly took measures to regain control of the account and strengthened security protection on social media platforms.
II. Economic Model Analysis:
In June 2025, the tokenomics of Solv Protocol's native token SOLV has been gradually improved, aiming to support its expansion in the fields of Bitcoin Financialization (BTCFi) and Real World Assets (RWA). The following is a detailed analysis of the $BTC SOLV token economic model:
1. Token Supply and Distribution
Maximum Supply: 9,660,000,000 SOLV. This upper limit can be adjusted through network governance mechanisms, especially for plans such as Bitcoin Reserve Issuance (BRO).
Initial Issuance: 8,400,000,000 SOLV.
Circulating Supply at Launch: 1,482,600,000, accounting for approximately 17.65% of the initial issuance and approximately 15.35% of the maximum supply.
Allocation Structure:
Private equity investors are the main token holders, accounting for about 29%, but private equity investors' tokens did not flow into the market much in the early stage. The main inflow into the market is still the community storage and airdrop part of the token, with about 17% of the tokens flowing in.
The collective problem of many new projects is that most of the tokens are held by the team or market maker, so it depends very much on the team's moral level and market making level.
2. Core Functions and Uses
SOLV tokens have the following uses in the Solv Protocol ecosystem:
Governance Rights: Holders can participate in protocol governance and vote on key parameters and development directions.
Staking Rewards: By staking SOLV, users can obtain protocol revenue and additional rewards.
Fee Discounts: Users holding SOLV can enjoy fee discounts when using protocol services.
Liquidity Incentives: Provide incentives for liquidity providers and partners to promote the healthy development of the ecosystem.
3. Deflationary Mechanism and Token Value Support
Token Burn: Solv Protocol implements a token burn mechanism to reduce market supply and enhance token scarcity by using part of the transaction fees to repurchase and burn SOLV.
Yield Repurchase: The protocol will use part of the revenue for market repurchase of SOLV.
Lock-up Mechanism: Set lock-up periods for team, investor, and advisor tokens to ensure long-term commitment and stability.
Token Release Chart Circulation will reach about 30% from 20% by the end of 2025. Private equity investors' tokens will gradually unlock recently, but the share should not be large. A large inflation period will begin in 2026.
4. Market Performance and Future Outlook
As of now, the market price of SOLV tokens is approximately US$0.0451, with an intraday fluctuation range between US$0.0440 and US$0.0467. The estimated FDV fluctuates around 400 million US dollars. With the continuous development of Solv Protocol in the BTCFi and RWA fields, its market performance needs further continuous verification by the market.
Summary
Solv Protocol's SOLV token economic model is designed to support its expansion in the fields of Bitcoin financialization and RWA tokenization. Through multiple uses, deflationary mechanisms, and incentive structures, SOLV tokens play a key role in the ecosystem. However, investors should pay attention to market volatility and the uncertainty of protocol development, and carefully assess investment risks. The core founders of the team are all Chinese, including the former VP of CSDN, who is very good at token economic models. However, investors also need to do their own DYOR on the team's risk control and analysis.
Risk Warning: This article is only for popular science learning in support of Binance Square and is not investment advice NFA.
