# Reserves

## Core Reserves and Innovative Reserves

SolvBTC’s reserve assets are divided into two categories: core reserves and innovative reserves. Native BTC and BTCB currently form the core reserves, while WBTC, FBTC, cbBTC, BTC.b, and tBTC are classified as innovative reserves.

### **Innovative Reserves** <a href="#innovative-reserves" id="innovative-reserves"></a>

These assets bring different levels of adoption and contribute unique value and additional liquidity to the ecosystem. The minting of SolvBTC with innovative reserves is capped, and a cross-chain rate limit is applied as a risk management measure.

### **Setting Key Parameters** <a href="#setting-key-parameters" id="setting-key-parameters"></a>

The Solv Protocol initially sets the parameters for minting caps and cross-chain rate limits. In the future, these parameters will be determined through decentralized governance, with Solv token holders determining which innovative assets qualify for SolvBTC minting, setting minting caps, designating native minting chain(s), adjusting cross-chain rate limits, and deciding which innovative reserves can become core reserves.

## Proof of Reserve

A key aspect of SolvBTC’s security is its fully transparent **Proof-of-Reserve system**. This mechanism allows users to verify, in real-time, that every SolvBTC in circulation is backed 1:1 by BTC or a trusted wrapped Bitcoin asset. By categorizing reserve assets and offering clear transparency, Solv Protocol ensures that users can trust the security of their holdings and avoid exposure to unnecessary risk.


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