Solv, a protocol for decentralized finance on Bitcoin, has integrated with Chainlink to power a new Secure Exchange Rate feed for its token SolvBTC on Ethereum.
Summary
- Solv Protocol will tap into Chainlink’s Proof of Reserves to ensure secure pricing logic for its wrapped Bitcoin asset.
- The Secure Exchange Rate feed allows DeFi protocols to leverage SolvBTC in onchain lending.
Solv Protocol is tapping into Chainlink (LINK)’s proof of reserves solution to bring a new SolvBTC-BTC Secure Exchange Rate feed to the Ethereum (ETH) network, Chainlink announced on Monday.
As well as Chainlink’s PoR, Solv Protocol will leverage its own institutional-grade Bitcoin (BTC) finance infrastructure to enable real-time collateral verification for SolvBTC-BTC.
The collaboration sees Solv now offer real-time proof of reserves for its wrapped BTC asset, allowing for a reliable and tamper-resistant redemption rate for decentralized finance protocols that offer onchain lending with SolvBTC assets. Ethereum has the leading DeFi market ecosystem, led by platforms like Aave.
“We’re excited to see Solv set a new benchmark for wrapped asset transparency with the launch of the Secure Exchange Rate feed powered by Chainlink Proof of Reserve. By combining real-time collateral verification with exchange rate logic, this solution delivers a redemption rate rooted in cryptographic truth, raising the security standard for wrapped assets across DeFi,” Johann Eid, chief business officer at Chainlink Labs
Solv adds secure mint feature
The Secure Exchange Rate feed uses built-in upper and lower bounds from PoR data, making the feed resistant to price manipulation.
Also powering the Secure Exchange Rate feed is Chainlink’s cross-chain interoperability protocol to enable multichain access. Lending protocols like Aave can tap into this verified SolvBTC-BTC rate for transparent collateralization and underwriting.
Solv Protocol is also leveraging Chainlink’s Secure Mint feature to ensure minting of the wrapped BTC asset only occurs when there are sufficient reserves of Bitcoin for 1:1 backing.
Solv boasts over 25,000 BTC staked and more than $2.5 billion in total value locked, with the Bitcoin staking platform’s features also including lending and yield vaults. The team recently launched the BTC+ vault, a Bitcoin yield vault designed to help holders unlock yield with their idle Bitcoin.
BTC+ aggregates capital and deploys it across yield-generating strategies such as staking, basis arbitrage, and onchain credit markets.