Solv Protocol, a monetary providers supplier for bitcoin holders, has partnered with decentralized oracle community Chainlink to combine real-time verification of Solv’s precise BTC reserves backing its liquid token, SolvBTC, instantly into its worth feed. This integration enhances transparency and builds better belief for customers.
In contrast to conventional worth feeds that rely solely on market information, the brand new SolvBTC-BTC Safe Change Fee feed combines alternate price calculations with real-time proof of reserves, delivering an on-chain redemption price firmly anchored in verifiable collateral.
Moreover, the mechanism options built-in higher and decrease bounds primarily based on reserve information, making it immune to manipulation and safer to be used in decentralized lending markets corresponding to Aave.
“We’re excited to work with Chainlink to launch a Safe Change Fee feed. This marks a significant evolution in DeFi safety, permitting protocols to extra precisely worth wrapped belongings by leveraging redemption charges rooted in verifiable collateral, powered by the Chainlink normal,” stated Ryan Chow, Co-Founder and CEO of Solv, in a press launch shared with CoinDesk.
The SolvBTC-BTC Safe Change Fee feed is now reside on the Ethereum mainnet, with plans to increase to different chains, together with BOB.
SolvBTC, launched in April 2024, is a bitcoin-backed liquid staking token that permits BTC holders to take part in decentralised finance (DeFi) ecosystems and earn yield whereas sustaining BTC publicity. Customers can deposit BTC and mint SolvBTC, a liquid illustration of staked BTC, usable throughout numerous DeFi protocols, together with vaults, decentralized exchanges (DEXs), and lending platforms.
Chainlink’s Proof of Reserve (PoR) leverages its decentralized oracle community to confirm that the on-chain provide of tokenized belongings, like stablecoins or wrapped belongings, is totally backed by precise reserves held off-chain or on different blockchains.
With billions of {dollars} in wrapped belongings circulating inside DeFi, clear, dependable pricing mechanisms are more and more crucial. By combining PoR with worth feeds atop Chainlink’s present cross-chain interoperability through CCIP, Solv allows wrapped belongings to perform securely as collateral throughout a number of blockchains.
Johann Eid, Chief Enterprise Officer at Chainlink Labs, summarized it properly: “By combining real-time collateral verification with alternate price logic, this answer delivers a redemption price rooted in cryptographic reality, elevating the safety normal for wrapped belongings throughout DeFi.”