Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.
This week, we cover how to farm Solv Points for a future SOLV airdrop allocation by depositing into an increasingly popular tokenized form of BTC on L2s, such as Arbitrum and Merlin.
With over $9.8B TVL, WBTC has dominated as the most liquid form of tokenized BTC across Ethereum and all other L1s/L2s.
As the Bitcoin DeFi landscape matures with more L2s launching, it makes sense this category of tokenized BTC will grow larger.
One standout among these new competitors is solvBTC by Solv. solvBTC is a composable yield-bearing version of tokenized BTC.
Solv Protocol is a native yield platform powered by decentralized asset management infrastructure and dedicated to tokenizing and aggregating high-quality yields for BTC and other tokenized yields across the industry (ie ETH, stablecoins).
It serves as a unified liquidity gateway for users seeking quality yield opportunities. Its flagship product is solvBTC. With solvBTC, DeFi users are able to lend, collateralize and borrow, and provide liquidity, while passively earning a BTC-denominated yield.
It seems probable we will see a yield-bearing token like solvBTC on Pendle in the future, given the demand for airdrop farmers speculating on yield-bearing tokens such as solvBTC.
Being live on Arbitrum and the Bitcoin L2 Merlin, Solv uses a trading-strategy-based mechanism designed to leverage various chains, protocols and exchanges to access diverse yield opportunities.
By allocating liquidity across different trading-strategies, Solv maximizes the generation of competitive yields. These underlying strategies are selected by an advisory council, with various delta neutral single strategies running on different platforms (ie. Binance, GMX) as underlying yield sources “to achieve further risk diversification and optimized returns.”
These strategies are not all on-chain, which means Solv products do carry additional risks (counterparty, CEX failure).
As of this post, Solv Protocol has approximately $388 million TVL in solvBTC, with an anticipated APY of 8-12%. It also has $25.8 million in Solv ETH products earning 12-15% APY and $63 million in stablecoin products earning 20-60% APY.
On April 5, 2024, Solv launched the Solv Points System, which will result in some “airdrop tokens allocated to this point system and early adopters of Solv.”
Here’s how the Solv Points System works:
- Earn points (XP) by depositing funds into Solv Vaults (solvBTC earns 8XP/$1)
- The more you deposit, the more XP you earn
- Holding your deposit longer increases your XP
- XP is calculated by dollars deposited x time held
- XP is updated daily. A daily snapshot is taken to record the value of funds staked in the incentivized vaults.
- Earn 8XP/$1 by depositing into solvBTC or 2XP/$1 into these trading strategies
- Earn additional XP through referrals, bonus equal to 10% of XP earned by referrals.
- Get XP boosts by reaching investment thresholds or participating in community events, where your Boosted XP = XP x Boost Multiplier
Today, I’ll show how I can deposit into solvBTC and start earning XP towards a future airdrop + 8-12% APY!
How to Earn Bitcoin Yield + Solv Points with solvBTC
Before we get started, please be aware of these risks.
- Smart…
DeFi Dad is one of the earliest power users of DeFi, having worked with early Ethereum startups going back to 2018, including Zapper.
