Bitcoin’s emerging layer-2 and DeFi ecosystems are sparking competition for BTC liquidity on other chains.
Solv Protocol has launched a Bitcoin (BTC) staking token on Solana in a bid to woo BTC holders as yield opportunities proliferate for the digital currency, Solv told Cointelegraph on Oct. 17.
New BTC yield options in the Bitcoin network’s emerging ecosystem of layer-2 scaling chains (L2s) and decentralized Finance (DeFi) protocols are forcing projects on other networks — such as Ethereum and Solana — to compete for BTC liquidity.
Dubbed SolvBTC.JUP, the liquid staking derivative (LSD) is designed to generate BTC-denominated yield from transaction fees on Jupiter Exchange, one of Solana’s most popular decentralized exchanges (DEX).