Solv Protocol partners with Sonic to bring Bitcoin to the blockchain and redefine BTC’s role in DeFi.

by
Alyssa Davidson

Posted: November 22, 2024 9:09 AM Updated: November 22, 2024 9:09 AM

by well

Correction and fact check date: November 22, 2024, 9:09 AM

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Bitcoin staking platform Solv Protocol has partnered with layer 1 blockchain Sonic (formerly Fantom) to integrate Bitcoin directly into the Sonic network through the Solv Protocol Bitcoin Reserve. This collaboration represents a notable step toward consolidating Bitcoin liquidity and expanding its use across the decentralized ecosystem.

Sonic is an EVM-compatible blockchain that boasts high throughput of 10,000 transactions per second (TPS) and transaction finality in just 1 second. Known for providing both infrastructure and strong incentives to developers, the company is well-positioned to foster innovation and drive adoption in the Bitcoin Finance (BTC-Fi) space. Its performance and user-centric ecosystem align well with Solv Protocol’s mission to bring speed, scalability, and decentralization to Bitcoin-based decentralized finance (DeFi) applications.

The integration will enable native creation of SolvBTC and SolvBTC.BBN on Sonic, giving users quick and cost-effective access to Bitcoin-backed assets. SolvBTC and SolvBTC.BBN holders will also be eligible to receive a portion of the approximately 200 million S airdrop, providing additional incentive to participate in the Sonic ecosystem.

Going forward, this partnership will introduce numerous DeFi opportunities to Sonic, including staking, liquidity pools, and lending markets, all leveraging Bitcoin. The integration also provides Bitcoin earning opportunities, allowing users to earn returns on their Bitcoin-based assets within Sonic’s fast and scalable ecosystem.

Sonic’s infrastructure makes SolvBTC’s Bitcoin Reserve even more powerful and facilitates cross-chain connectivity for users. Sonic supports innovation, making it easy for developers to create Bitcoin-based DeFi applications. Whether you are a retail user seeking yield or an institution exploring DeFi, Sonic provides a gateway for broad participation in the evolving Bitcoin financial ecosystem.

Solv Protocol: What is it?

The Solv protocol is a popular Bitcoin ​​staking platform built on the Staking Abstraction Layer (SAL). With SolvBTC reserves providing broad access to Bitcoin assets, the platform is working to unlock the full potential of Bitcoin reserves exceeding $1 trillion.

Recently, the platform revealed the underlying asset classification within SolvBTC reserves. This development is intended to enhance security for users, create monetization opportunities, and ensure continued liquidity on the platform.