Solv Protocol, a decentralized finance (DeFi) project that aims to bring native yield to Bitcoin and other assets, has experienced a rapid increase in April. Its total value locked (TVL) figure has surged from $114 million at the beginning of the month to $672 million as of this writing, gaining 490% in four weeks, according to data from DefiLlama.
The spike propelled Solv to the top 40 DeFi protocols by TVL.
Solv offers native yield to multiple networks via tokenized trading strategies, although it focuses on Bitcoin, which lacks a staking ecosystem similar to that of Ethereum.
For example, users can deposit Bitcoin in Solv’s trading strategy vault and receive the liquid strategy token SolvBTC. The latter is compatible with Ethereum and DeFi apps, and more importantly, it offers native yield by generating Solv points. It is promoted as the first yield-bearing Bitcoin.
Solv supports other tokens, but Bitcoin accounts for 80% of all deposits with over $535 million.
Solv is live on five blockchain networks, but Merlin, a Bitcoin layer 2, accounts for the lion’s share of TVL.
The yield protocol is now the largest DeFi project on Merlin, accounting for over 50% of its TVL.
Solv claims to have over 90,000 users and to have generated over $6.4 million in yield.
Solv Prepares Financial NFTs
The Solv team has introduced the ERC-3525 token standard on Ethereum, which enables the creation of semi-fungible tokens that can be applied in DeFi, real-world asset (RWA) protocols, and social applications.
The Ethereum Foundation approved the ERC-3525 as its 35th ERC standard at the end of 2022.
Solv is currently testing stUSD, a stablecoin vault that leverages this standard. It has over $1.5 million in testing capital, offering a fluctuating yield. stUSD is the vault’s share token, which enables stablecoin holders to access yield-bearing assets using ERC-3525.
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