Leading Solv Protocol in the BTC track has recently officially entered the RWA (real-world assets) field by launching SolvBTC.AVAX, marking an important milestone in Bitcoin's transformation from a mere store of value to an on-chain yield-generating asset. Here is a summary of key information:
1. Core functions and operational mechanisms of SolvBTC.AVAX
SolvBTC.AVAX is an RWA yield token based on the Avalanche chain, allowing users to deposit BTC into the protocol and convert it into this token to earn yields through the following methods:
Underlying assets: Linked to 4 billion USD institutional-grade RWA assets such as U.S. Treasury bonds and private credit (from institutions like BlackRock and Hamilton).
Yield model: Automated lending, farming, and compounding reinvestment through protocols like Elixir and Euler, with yields distributed in BTC.
Incentive mechanism: Users can earn native AVAX tokens, Elixir points, and Solv points, achieving multiple income streams.
2. Strategic significance and industry impact
Reconstruction of Bitcoin's role: SolvBTC.AVAX is the first to transform BTC into a 'yield-bearing on-chain asset', breaking its traditional passive store of value positioning, turning it into a 'digital interest asset' participating in global capital flows.
RWA track acceleration: The total market value of RWA has exceeded 22 billion USD (as of May 2025), with U.S. Treasury bonds and private credit being the fastest-growing asset classes. Institutions like BlackRock and Franklin Templeton are driving market mainstreaming through tokenized asset allocation.
Technical cooperation and compliance: Solv collaborates with Chainlink to achieve transparent verification of on-chain assets, enhancing institutional investor trust.
3. Ecological layout of Solv Protocol
Leading position in BTC asset management: Solv's total locked assets reached 2.8 billion USD, making it a top project in BTC staking and asset management, with collaborations covering over 10 public chains including Avalanche, Arbitrum, and 50+ DeFi protocols.
Institutional endorsement: Strategic investment from Binance, support from Nomura Securities and other capital, and collaborations with Ethereum Labs, Severn, and other institutions to promote the deep integration of BTC and RWA.
4. Future outlook
The launch of SolvBTC.AVAX is seen as an important step towards the financialization of BTC, potentially driving further explosion in the RWA market. As DeFi transitions towards compliant yields, RWA, with its low-risk and high-liquidity characteristics, may become a new growth engine in the crypto market.
In summary, Solv Protocol integrates BTC with RWA assets, not only expanding Bitcoin's application scenarios but also injecting institutional-level liquidity into the RWA track, becoming a key bridge connecting traditional finance and the crypto ecosystem.