Solv Protocol launches a stake abstraction layer, dedicated to integrating BTC liquidity

Recently, the Bitcoin staking protocol Solv Protocol completed a new round of financing of $11 million, bringing its total funding to $25 million. The protocol's staking scheduling center has gathered over 20,000 BTC in liquidity, including multiple projects such as SolvBTC.BBN, SolvBTC.ENA, and SolvBTC.CORE.

Solv Protocol recently proposed the concept of Staking Abstraction Layer (SAL), which has attracted widespread attention in the industry. This concept aims to address the issue of liquidity fragmentation of Bitcoin, providing a unified application standard for BTC assets across different chains.

There are views that classify Solv Protocol as part of a certain ecosystem, arguing that Solv provides a large amount of BTC staking assets for this system. However, the goals of Solv Protocol go far beyond this. While a certain system utilizes cryptographic algorithms to lock native BTC assets in the BTCFi field, providing some security consensus for platforms like Solv, it is Solv that is the actual liquidity provider. A more accurate relationship between the two should be one of parallel cooperation and mutual benefit.

The staking abstraction layer concept proposed by Solv Protocol aims to further integrate BTC liquidity scattered across various chains. This abstraction layer covers not only mainstream public chains such as Ethereum EVM and BNB Chain but also diverse scenarios like CeDeFi. Compared to some projects that only focus on native BTC liquidity, Solv's vision is to integrate all liquidity related to BTC assets and conduct unified scheduling through the platform.

The staking abstraction layer is composed of a series of smart contracts aimed at simplifying the interaction process between users and Bitcoin staking protocols. It defines a complete set of functionalities covering various aspects such as LST asset issuance, distributed node staking validation, yield distribution, and penalty mechanisms. This architecture allows for multiple parties to participate, including various LST protocols, qualified asset custody entities, and DeFi protocols.

From a business perspective, Solv targets the pain point of excessive decentralization of Bitcoin liquidity, attempting to build a liquidity aggregation service layer to accelerate the convergence and application circulation of BTC assets. This approach is not just about simply expanding the BTC pool of funds, but rather coordinating various resources on-chain and off-chain, handling complex relational networks, and ultimately achieving the "on-chain" of related assets.

The staking abstraction layer concept of Solv is actually aimed at establishing a unified circulation and application standard for BTC that is dispersed across different environments (on-chain and off-chain), thereby unlocking the potential and value of BTCFi. Considering that the ETH staking rate only maintains around 28% on well-established infrastructure networks like Ethereum, it is clear that there is still a long way to go to significantly increase the staking rate of dispersed BTC and fully leverage its advantages in asset appreciation.