What Is Solv Protocol and How to Get the Airdrop

Hello, this is Bitpunk. Today, we're going to take a look at Solv Protocol. Solv Protocol recently raised more than $16 million from Binance Labs, Blockchain Capital, and others.

In this post, we'll cover what Solv Finance is, why it's getting attention, and how to farm Solv Points.

What Is Solv Protocol?

The simplest way to describe Solv Protocol is as a "Bitcoin-based DeFi" platform. Because Bitcoin has virtually no smart contracts, building DeFi on it the way Ethereum and other Layer 2 projects do was practically impossible.

However, as Bitcoin Layer 2 solutions launched, various ways to stake Bitcoin and move it across networks began to emerge. The Solv project implements this based on a concept called the Decentralized Bitcoin Reserve.

What Is the Decentralized Bitcoin Reserve?

This might sound a bit complicated. Simply put, you can think of it as managing Bitcoin liquidity in a decentralized way, which here means using smart contracts.

For example, to participate in DeFi on Solv Finance, you need to 1) deposit Bitcoin and 2) convert it into SolvBTC. This process inevitably requires holding the original BTC and issuing a liquidity token.

The Decentralized Bitcoin Reserve uses a consensus network that handles this liquidity management and asset backing, along with the UTXO-3525 model, which maps Bitcoin transactions to the ERC-3525 standard.

SolvBTC and Solv Finance

Earlier, I mentioned that Solv Finance is DeFi. I also mentioned that Bitcoin has no smart contract functionality. That's why a new liquidity solution called SolvBTC was introduced. Simply put, you can think of it as a wrapped token.

Once you visit Solv Finance, you can convert Bitcoin held on various chains, such as Bitcoin, BSC, Arbitrum, and Merlin, into SolvBTC. This lets you earn yield on top of Solv Protocol.

How to Earn Solv Points

On Solv Finance, you can earn not only DeFi yield but also farm Solv Points for a future airdrop. Basically, simply holding SolvBTC in your wallet is enough. If you want to farm more, you can also deposit that SolvBTC into protocols such as Avalon Finance to double-farm points.

1. Connect Your Wallet to Solv Finance

Go to Solv Finance and connect your wallet using 'Connect Wallet' in the upper right corner. You can use MetaMask, the OKX personal wallet, and others.

2. Convert to SolvBTC

Next, convert the BTC held in your wallet into SolvBTC. You can use the Bitcoin mainnet for this, but you can also use BNB Chain or Arbitrum, which are cheaper and faster. Of course, you need to have BTC assets on that network, as well as a small amount of the native token to process transactions.

3. Farm Points and Deposit

Once you've obtained SolvBTC, you'll automatically start farming points. If you go to 'Points System' on Solv Finance, you'll find various ways to earn points. If you want to earn additional points, you can also deposit that SolvBTC into other DeFi protocols.

Closing Thoughts

That wraps up our look at the Solv project. Personally, it's a project I'm keeping a close eye on, and it's a Bitcoin DeFi project I hope does well. I'm currently participating in deposits using BTC.B on BNB Chain. The advantage of this approach is that exchange deposit and withdrawal fees are quite low, at less than KRW 1,000.