Solv is a Bitcoin staking protocol designed to establish a Bitcoin-centered financial ecosystem by increasing liquidity and enhancing the utility of Bitcoin assets. Through cross-chain operations, it ensures that Bitcoin holders can participate in decentralized finance (DeFi), allowing Bitcoin to generate returns. It adopts a modular design, including core services such as LST generation and staking verification, and dynamically adjusts trading rules and revenue distribution mechanisms through a Staking Parameter Matrix (SPM). Risk and Challenges
The project needs to address issues such as the security of cross-chain bridging, liquidity distribution balance, and regulatory compliance. In the short term, it may focus on optimizing existing blockchain technology rather than building its own infrastructure. Liquidity and Returns
SolvBTC achieves liquidity management of Bitcoin through a Staking Abstraction Layer (SAL), allowing users to stake idle BTC and participate in DeFi activities while maintaining asset liquidity. The SolvBTC.LST tokens generated after staking can be used for lending, trading, and other operations, with yields of up to 24%, but they need to be used with stablecoins. Cross-chain and Compliance
The project plans to implement a cross-chain liquidity solution through the ERC-3525 semi-fungible token (SFT) standard and explore compliant custody services, aiming to integrate traditional finance with the DeFi ecosystem. Technical Architecture
