SolvBTC Overview: How to generate income? Points system is enabled

Author: Ash, Source: Author Twitter @ahboyash; Compiler: Tao Zhu, Golden Finance

Since BRC-20 and Ordinals, I have been bullish on Bitcoin's recent progress in increasing utility, not just as a store of value.

For me, it makes sense to continue to push the forefront of BTC development given the size of the asset class and how nascent the on-chain DeFi / NFT space is right now.

@SolvProtocol fits my overall bullish narrative in the space, and they recently launched SolvBTC: becoming the first BTC ever to have a yield.

In Summary:

• Most Bitcoin remains idle as holders have limited reasons to move and leverage the value of their Bitcoin.

• SolvBTC is the first BTC ever to generate yield while maintaining spot exposure.

• Yield is generated through 3 strategies: Market Making, Delta Neutral Funding Rate, and Cross-Exchange Arbitrage.

• SolvBTC will be integrated across various chains and dApps, with the Solv protocol acting as a unified liquidity gateway.

• The protocol has already established partnerships with many leading protocols such as @GMX_IO, @MerlinSwap, etc.

Yield Generation Strategies

SolvBTC will generate income through 3 strategies:

Strategy 1: Market Making

• Profit from the bid-ask spread on decentralized perpetual exchanges.

Strategy 2: Delta Neutral Funding Rate

• Generate profits and collect funding rates through equal long and short futures.

Strategy Three: Cross-Exchange Arbitrage

• Profit from price differences across different cryptocurrency exchanges (think Kimchi Premium).

Personally, I like how the underlying strategies are tried and tested to ensure good risk diversification and optimal returns for users.

The Advisory Board (composed of internal members and key external partners) will also act as a check and balance, providing guidance to ensure the strategy is transparent and credible.

What’s next?

a) Market launch and expansion of the BTCFi ecosystem:

SolvBTC is already live on @arbitrum and @MerlinLayer2 and currently has a TVL of over 1000+ BTC (over $65M USD), and their other strategies have a TVL of over $140M USD.

I’m excited to see where this will lead to for SolvBTC, as their other vaults have generated over $7M USD so far. Additionally, given that SolvBTC has ERC20 features, this allows it to be integrated into a variety of dApps and chains — improving liquidity and acting as a multi-chain BTCFi Lego block.

b) Points System:

• The team announced that the points system was launched on April 5th, which may reward early adopters of SolvBTC (hint: the token is not online yet).

https://twitter.com/SolvProtocol/status/1773188502248714694

c) Strong Team:

 • The team has raised 7 funding rounds from notable names like @BinanceLabs, @Nomura Laser Digital, and our portfolio @Signum_Capital x UOB Venture Management.

https://coindesk.com/business/2023/07/31/nomura-backs-6m-round-for-on-chain-fund-platform-solv-protocol/

d) Get Started:

• For those interested, please go to https://app.solv.finance/solvbtc to start earning BTC.