Solv Protocol has introduced ‘SolvBTC.JUP’, a new Liquid Staking Token designed to allow Bitcoin investors to earn returns through Solana’s decentralized finance (DeFi) ecosystem.

Even though it is currently in its pilot phase, SolvBTC.JUP provides Bitcoin holders an opportunity to generate returns, paid in Bitcoin, by participating in Solana’s Jupiter Exchange. The process involves depositing Bitcoin into Solv Protocol, and in return, users receive SolvBTC.JUP, a token that represents their staked Bitcoin.

How SolvBTC.JUP Works

This token accrues yield over time based on Solv’s involvement in the Jupiter Liquidity Provider Pool. The Jupiter Exchange, a platform for decentralized perpetual trading, allows liquidity providers to earn fees based on trading activity. Solv’s strategy minimizes risks by hedging exposure to market movements while maintaining the Bitcoin stake.

Understanding Staking in DeFi

For Bitcoin holders unfamiliar with decentralized finance (DeFi), staking means temporarily locking up tokens to support a network or participate in a trading pool. In return, the staked tokens earn rewards, often in the form of the same token.

SolvBTC.JUP enables Bitcoin owners to participate in this system on the Solana network without relinquishing their Bitcoin exposure. With an expected return of 12%, as stated in the press release, SolvBTC.JUP builds on Solv’s previous success in offering Bitcoin staking on other platforms.

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