Solv Protocol, a monetary companies supplier for bitcoin holders, has partnered with decentralized oracle community Chainlink to combine real-time verification of Solv’s precise BTC reserves backing its liquid token, SolvBTC, instantly into its value feed. This integration enhances transparency and builds better belief for customers.
Not like conventional value feeds that rely solely on market information, the brand new SolvBTC-BTC Safe Trade Charge feed combines trade charge calculations with real-time proof of reserves, delivering an on-chain redemption charge firmly anchored in verifiable collateral.
Moreover, the mechanism options built-in higher and decrease bounds based mostly on reserve information, making it immune to manipulation and safer to be used in decentralized lending markets akin to Aave.
“We’re excited to work with Chainlink to launch a Safe Trade Charge feed. This marks a serious evolution in DeFi safety, permitting protocols to extra precisely value wrapped property by leveraging redemption charges rooted in verifiable collateral, powered by the Chainlink customary,” mentioned Ryan Chow, Co-Founder and CEO of Solv, in a press launch shared with CoinDesk.
The SolvBTC-BTC Safe Trade Charge feed is now dwell on the Ethereum mainnet, with plans to broaden to different chains, together with BOB.
SolvBTC, launched in April 2024, is a bitcoin-backed liquid staking token that permits BTC holders to take part in decentralised finance (DeFi) ecosystems and earn yield whereas sustaining BTC publicity. Customers can deposit BTC and mint SolvBTC, a liquid illustration of staked BTC, usable throughout numerous DeFi protocols, together with vaults, decentralized exchanges (DEXs), and lending platforms.
Chainlink’s Proof of Reserve (PoR) leverages its decentralized oracle community to confirm that the on-chain provide of tokenized property, like stablecoins or wrapped property, is absolutely backed by precise reserves held off-chain or on different blockchains.
With billions of {dollars} in wrapped property circulating inside DeFi, clear, dependable pricing mechanisms are more and more crucial. By combining PoR with value feeds atop Chainlink’s present cross-chain interoperability by way of CCIP, Solv allows wrapped property to perform securely as collateral throughout a number of blockchains.
Johann Eid, Chief Enterprise Officer at Chainlink Labs, summarized it properly: “By combining real-time collateral verification with trade charge logic, this answer delivers a redemption charge rooted in cryptographic reality, elevating the safety customary for wrapped property throughout DeFi.”
