**Solv Protocol Launches BTC Staking Token on Solana**
Solv Protocol has introduced a new Bitcoin (BTC) staking token on the Solana network, aiming to attract BTC holders with lucrative yield opportunities. Named SolvBTC.JUP, this liquid staking derivative (LSD) promises to generate BTC-denominated yield from transaction fees on Jupiter Exchange, a leading decentralized exchange (DEX) on Solana.
Currently in its pilot phase, SolvBTC.JUP targets an impressive 12% annual percentage return (APR), significantly higher than the low single-digit APRs typically offered by BTC staking on layer-2 scaling chains (L2s). Solv employs a delta neutral strategy to mitigate risks associated with volatile token prices in Jupiter’s liquidity pool.
Jupiter Exchange, a key player in Solana’s DeFi ecosystem, boasts around $1.3 billion in total value locked (TVL), according to DefiLlama. As competition for BTC liquidity intensifies, Ethereum’s EigenLayer has also added wrapped Bitcoin to its restaking protocol, further enticing BTC holders.
This move underscores the growing trend of integrating Bitcoin into decentralized finance, with various networks vying to offer the best yield options for BTC stakers.