Solv Protocol, a monetary companies 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, immediately into its worth feed. This integration enhances transparency and builds higher belief for customers.
Unlike conventional worth feeds that rely solely on market information, the brand new SolvBTC-BTC Secure Exchange Rate feed combines change price calculations with real-time proof of reserves, delivering an on-chain redemption price firmly anchored in verifiable collateral.
Additionally, the mechanism options built-in higher and decrease bounds based mostly on reserve information, making it resistant to manipulation and safer to be used in decentralized lending markets equivalent to Aave.
“We’re excited to work with Chainlink to launch a Secure Exchange Rate feed. This marks a major evolution in DeFi security, allowing protocols to more accurately price wrapped assets by leveraging redemption rates rooted in verifiable collateral, powered by the Chainlink standard,” stated Ryan Chow, Co-Founder and CEO of Solv, in a press launch shared with CoinDesk.
The SolvBTC-BTC Secure Exchange Rate 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. Users can deposit BTC and mint SolvBTC, a liquid illustration of staked BTC, usable throughout varied 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 property, like stablecoins or wrapped property, is totally backed by precise reserves held off-chain or on different blockchains.
With billions of {dollars} in wrapped property circulating inside DeFi, clear, dependable pricing mechanisms are more and more vital. By combining PoR with worth feeds atop Chainlink’s current cross-chain interoperability by way of CCIP, Solv permits wrapped property to operate securely as collateral throughout a number of blockchains.
Johann Eid, Chief Business Officer at Chainlink Labs, summarized it nicely: “By combining real-time collateral verification with exchange rate logic, this solution delivers a redemption rate rooted in cryptographic truth, raising the security standard for wrapped assets across DeFi.”
