What Is Solv Protocol and How to Earn Solv Points

How to Earn Solv Points

Solv is a decentralized platform that enables bitcoin holders to put their BTC to work and earn yield through the Decentralized Bitcoin Reserve. Users can earn points by holding SolvBTC and interacting with the SolvBTC ecosystem through staking, providing liquidity, and more.  

Key Takeaways

• Solv Protocol is a platform that enables bitcoin holders to utilize their assets and earn yield through the Decentralized Bitcoin Reserve. 

• The protocol has successfully raised $16 million and is backed by investors such as Binance Labs, Blockchain Capital, Laser Digital, and more.

• Users can now participate and earn points in the Solv Points system by holding and staking SolvBTC.

What Is Solv Protocol? 

Solv Protocol is a decentralized platform for enhancing yield and liquidity across major assets within the cryptocurrency ecosystem by establishing a Decentralized Bitcoin Reserve. The project aims to build a platform where BTC assets can flow across blockchain networks to unify Bitcoin’s liquidity and amplify its utility. Currently, bitcoin (BTC) holders are unable to deploy their assets on other blockchains, resulting in idle BTC. 

The Decentralized Bitcoin Reserve is built on three pillars in order to address various aspects needed to create a comprehensive and compliant product. First is the Liquidity Consensus Network (LCN) which serves as the operational core to manage liquidity and ensure smooth cross-chain interactions. The LCN provides dynamic liquidity management by handling and managing Bitcoin within the reserve. It also supports the transfer of Bitcoin assets across different blockchain networks and integrates liquidity from diverse sources. On top of that, the LCN operates with transparent and auditable records as well as regular reporting to provide transparency and network safety. 

The second pillar is Solv Protocol’s implementation of UTXO-3525, a protocol that maps Bitcoin transactions to the ERC-3525 standard. This protocol enables the transfer of Bitcoin-related assets such as BTC, Ordinals, and Runes from the Bitcoin chain to EVM-compatible networks. By mapping these transfers, users can enjoy features like uncollateralized borrowing and enhanced liquidity for Bitcoin assets. UTXO-3525 is also meant to support the reserve’s scalability by accommodating growing demand.

Facilitating traditional finance integration via the compliance bridge is the third and final pillar of the reserve. It focuses on creating an infrastructure that encourages traditional financial institutions to participate by implementing a compliant infrastructure. This includes efforts such as the tokenization of BTC ETFs as well as comprehensive reporting and auditing capabilities that can meet the requirements of traditional finance participants. 

SolvBTC is a Liquid Yield token kept in the reserves and backed 1:1 by Bitcoin. Users who participate on Solv Protocol can earn yield with SolvBTC by utilizing yield vaults or exploring DeFi opportunities. Depositing SolvBTC into Yield Vaults provides access to BTC Staking, Restaking, and Delta-Neutral Trading strategies. Meanwhile, SolvBTC can also be staked and converted into liquid staking tokens such as SolvBTC.BBN and SolvBTC.ENA. It is currently deployed on five major networks including Bitcoin mainnet, Ethereum mainnet, and BNB chain. 

Solv Protocol has successfully raised $16 million across five funding rounds and is backed by prominent investors including Binance Labs, Blockchain Capital, Laser Digital, and more. The protocol has also undergone security audits by various firms such as Quantstamp, Certik SlowMist, Salus, and Secbit.

Interested users can now participate in the Solv Points system to earn points by holding SolvBTC and interacting with the SolvBTC ecosystem. Given the growing interest in deploying Bitcoin assets across other chains, now is a good time to explore the Solv Protocol ecosystem and earn points!

Do take note that at the time of writing, the Solv Protocol team has not made any official announcements regarding a token launch. Therefore, participating in the Solv Points system by following the steps below does not guarantee a future token airdrop allocation. 

Step 1: Connect Wallet

First, head over to https://app.solv.finance/points and Connect your wallet either on the main screen or in the top right corner.

There are a few wallet options to choose from and in this guide, we will be using MetaMask. 

Do make sure that whichever wallet you select has a form of BTC asset such as WBTC on Arbitrum or FBTC on Ethereum as well as enough ETH to cover gas fees.

Step 2: Get SolvBTC

Now that your wallet is connected, it is time to get some SolvBTC!

In the top menu bar, head over to SolvBTC on the left.

Here you can choose which network you want to deposit your BTC asset from. In this guide, we are depositing WBTC on the Arbitrum chain. 

Input your deposit amount, Approve it, and Confirm the transaction in your wallet. You will then receive SolvBTC.

Holding SolvBTC is the easiest way to receive Solv Points and the following steps are optional for those who are not comfortable interacting with various protocols. However, do consider the amount of XP you can earn as it varies depending on each step.

Step 3: Stake SolvBTC (Optional)

After receiving your SolvBTC, you can proceed to stake it. At the time of writing, the Babylon campaign is currently paused, therefore we are unable to receive SOLVBTC.BB and will proceed with the SolvBTC Ethena campaign.

Do note that this step is optional as you are required to perform the Know Your Customer (KYC) process which some users may prefer not to. You can still earn Solv Points from holding SolvBTC. 

In the top menu, move over to the SolvBTC.ENA page where you will need to Verify your identity. Clicking this will redirect you to the Synaps page.

You will need to provide your email address and wallet address to sign up for the KYC process. A verification code will be sent to your email for you to paste into the Synaps page.

After that, you need to perform a liveness test, in which your camera records your face moving closer to the camera and staying still. 

Then, you need to upload pictures of the front and back of a government document such as a passport or driving license. 

Once everything is submitted, it may take up to 24 hours for your documents to be reviewed and approved. 

After your account has been verified and approved, you can proceed to input your desired amount of SolvBTC to Approve in your wallet.

Then Stake your SolvBTC and confirm the transaction in your wallet.

Step 4: Provide Liquidity 

Back in your top menu, head over to Liquidity to see the different DeFi protocols you can provide liquidity to. When browsing, do take into account which assets you need to have in order to participate such as SolvBTC, SolvBTC.BBN, and SolvBTC.ENA.

In this guide we will continue with the Arbitrum network. As shown below, there are a few DeFi options under Arbitrum which require different assets. For example, on DODO you can stake SolvBTC-WBTC LP, SolvBTC-SolvBTC.ENA LP, or SolvBTC-SolvBTC.BBN LP. 

As some of you may prefer to only hold on to SolvBTC, for this step we will go with the simplest option which is to supply SolvBTC on Avalon. 

Get Started with the option and be redirected to the Avalon page. Connect your wallet in order to supply your SolvBTC.

Input the amount you want and Approve SolvBTC to continue.

After that, Supply SolvBTC and confirm the transaction in your wallet.

Step 5: Discover the Yield Market

In the top menu, proceed to Yield Market to discover the various options there are on different chains. 

We will be looking at the Arbitrum chain.

We highly recommend that you take the time to read and understand each opportunity so you are aware of the product itself.

For example, the GMX V2 USDC-A has a risk management system that will liquidate and suspend the strategy for at least 14 days if the 30-day drawdown exceeds 3%. Users can then apply for redemption at any time during this period which will be processed on the 15th and 30th of each month.

In order to participate, input how much USDC you want to pay and then Approve and Confirm the transaction.

Conclusion

Solv Protocol aims to enhance yield and liquidity opportunities for bitcoin holders by enabling cross-chain interoperability and allowing BTC assets to be transferred on other blockchain networks. Users can now earn points when participating in the Solv Points system by holding SolvBTC and interacting with various yield opportunities on DeFi protocols.