Solv Protocol, a DeFi platform providing Bitcoin financial services, like yield generation, lending, and liquid staking, today entered into an important strategic collaboration with Chainlink, a decentralized oracle network. With this partnership, Solv Protocol integrated Chainlink Price Feeds to bring high-quality price reference data to SolvBTC, its flagship Bitcoin DeFi product. SolvBTC is a Bitcoin-backed token that enables BTC holders to participate in cross-chain DeFi yield opportunities.
Solv Protocol Brings Chainlink Price Reference Data to SolvBTC
SolvBTC has become an important player in the DeFi sector based on its $1.131 billion TVL. While it is a huge market, for it to remain safe and continue to experience growth, it needs various kinds of data, computing, and multi-chain services to enhance its interoperability and trustworthiness within the decentralized finance sector. This is the reason Solv Protocol integrated Chainlink’s Exchange Rate feed to provide its ecosystem with the data, compute, and multi-chain services that SolvBTC needs to enhance its security, interoperability, and advancement in DeFi.
To expedite the adoption of SolvBTC, Chainlink now supports a SolvBTC Price Feed on Ethereum, thanks to this integration. Safeguarded by Chainlink’s industry-standard oracle system, this new SolvBTC Price Feed enables Bitcoin customers to view efficiently reliable, precise, and decentralized market data for SolvBTC on the Ethereum blockchain. This provides BTC clients with the information required to assist in creating safe transactions around SolvBTC and use it as collateral to facilitate further DeFi trades.
Furthermore, Solv Protocol integrated Chainlink’s Proof of Reserve on the Ethereum mainnet to offer continuous verification for its Bitcoin-backed token, SolvBTC. This incorporation ensures that the token remains completely backed, allowing customers to authenticate its integrity at any time without depending on digital opaque pricing mechanisms. Using this initiative, Solv Protocol aims to enhance confidence among individual and institutional investors using SolvBTC in its ecosystem’s DeFi lending and yield strategies.
SolvBTC is transferable on Ethereum, where it functions as collateral for DeFi applications and facilitates trades. Together, Solv Protocol and Chainlink are expanding the usage of the Bitcoin product in the DeFi environment and helping improve its reliability to billions of crypto customers across the world.
How Chainlink’s Security System Helps Spur Adoption of SolvBTC
Apps and clients across the DeFi landscape require top-notch, tamper-resistant market data to create safe trades around an asset and generate trading activity. Without safe data, apps and the capital held within them would be prone to market manipulation risks. By safely providing accurate SolvBTC data on-chain, Chainlink price feeds enable SolvBTC to attract liquidity and spur the network’s adoption.
As a renowned market price data solution in the decentralized world, Chainlink already assists in securing major DeFi projects, maintaining strong security and wide availability even amidst unanticipated incidents like system outages, sudden market drops, and data manipulation exploits through flash loans.
Chainlink Price Feeds source data from multiple prominent data aggregators, leading to price data that is collected from numerous exchanges, measured by market liquidity available, and washed from dubious volumes. The collaboration between Solv Protocol and Chainlink is a further move to drive the adoption of SolvBTC across various on-chain use cases.
