Solv brings RWA-backed Bitcoin yield to Avalanche blockchain

3 hours ago

Solv Protocol has launched a yield-bearing Bitcoin token connected the Avalanche blockchain, giving organization investors much vulnerability to output opportunities backed by real-world assets, oregon RWAs.

On May 16, the protocol unveiled SolvBTC.AVAX, a token that connects Bitcoin (BTC) to real-world assets similar US Treasurys and backstage recognition offered by BlackRock and Hamilton Lane.

The caller token was developed done a seven-way concern involving Solv, Avalanche, Balancer, Elixir, Euler, Re7 Labs, and LFJ, the institution said.

Solv Protocol laminitis Ryan Chow said the token is simply a mode to nexus Bitcoin to “real-world economical cycles” successful uncorrelated assets specified arsenic US authorities bonds and backstage credit, arsenic opposed to BTC’s emblematic boom-and-bust four-year cycle.

The token uses a multi-protocol strategy to make output involving Elixir’s deUSD stablecoin, Treasurys provided by BlackRock and Hamilton Lane via Elixir, and incorporated connected the lending level Euler to summation RWA exposure.

“The output is received successful BTC format,” a Solv Protocol spokesperson told Cointelegraph

Solv is simply a Bitcoin-centric staking level that offers output strategies crossed assorted blockchains and decentralized concern applications. The protocol commands much than $2.3 cardinal successful full worth locked, according to manufacture data.

The contention to connection Bitcoin output intensifies

Demand for Bitcoin output solutions has grown amid the caller question of organization adoption of integer assets.

Earlier this month, crypto speech Coinbase launched the Bitcoin Yield Fund, which aims to connection yearly returns of betwixt 4% and 8% connected BTC holdings.

The output volition beryllium earned done a cash-and-carry strategy, which involves purchasing BTC successful the spot marketplace and selling a corresponding futures contract, Coinbase said.

CoinShares expert Satish Patel predicted the growing involvement successful Bitcoin yield successful December, noting that much investors present spot BTC “not lone arsenic a store of worth but besides arsenic a means to make yields.”

While determination are galore ways to make Bitcoin yield, specified arsenic leveraging derivatives oregon output farming, Michael Saylor’s Strategy introduced its ain “BTC Yield” metric to measurement the show of its concern strategy.

Strategy’s BTC Yield, which measures however overmuch further Bitcoin it’s acquiring comparative to its outstanding shares, is presently 15.5% year-to-date, according to the company.