Solv Protocol
  • Welcome to Solv
    • Introduction
    • State of Bitcoin Staking
    • The On-Chain Bitcoin Reserve
  • SOLV Token
    • SOLV Tokenomics
    • Claiming SOLV
      • Claiming SOLV from a Multi-sig Wallet
      • Claiming SOLV as Flexible Voucher Holders
    • Governance
  • Key Products
    • SolvBTC
    • SolvBTC LSTs
      • LST Suite
      • Yield Related Address
    • DeFi Vaults
    • Bitcoin Reserve Offerings
  • Staking Abstraction Layer (SAL)
    • Introduction
      • The Challenges with Bitcoin Staking
      • What is SAL?
    • Architecture
      • The Ecological View
        • The Staking Protocols
        • The LST Issuers
        • The Staking Guardians
        • The Yield Distributors
      • The Technical Architecture
        • The Staking Abstraction Matrix
        • LST Issuance Services
        • Staking Verification Services
        • Transaction Building Services
        • Yield Distribution Services
      • Diverse Yield Streams Accessible Through SAL
  • Security
    • Solv Guard
    • Smart Contract Governance
    • Smart Contract Audits
      • Audits
  • USER GUIDE
    • Deposit BTCB in Binance MegaDrop
    • Claim BABY as xSolvBTC Holders
  • Developer Guide
    • Core Components
      • Price Oracles
      • Cross-chain Bridge
    • Smart Contracts
      • Technical Architecture
      • Asset Storage & Representation
      • LST Oracle Mechanism
      • Contract Addresses
    • Integrations
      • SolvBTC and SolvBTC.LSTs
      • Data Services
        • SolvBTC/SolvBTC.LSTs storage pools
        • User Assets
      • SAL Services
    • Code Repo
  • Legal
    • Terms of Use
    • Privacy Policy
    • Cookie Policy
    • Disclaimer
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  1. Staking Abstraction Layer (SAL)
  2. Architecture

Diverse Yield Streams Accessible Through SAL

The Staking Abstraction Layer (SAL) enables Bitcoin holders to access diverse and dynamic yield streams without compromising liquidity. By leveraging the cross-chain capabilities of SAL, users can unlock various opportunities for yield generation, transforming Bitcoin from a passive store of value into a productive asset within DeFi. Here’s a breakdown of the key yield sources accessible through SAL:

1. Restaking Yields

Bitcoin holders can earn native token rewards by staking their Bitcoin on platforms that benefit from Bitcoin’s economic security, such as:

  • Babylon

  • EigenLayer

  • Symbiotic

These networks reward participants in their native tokens while benefiting from the security provided by Bitcoin, allowing users to access yields from Bitcoin's economic security.

2. Validator Rewards

Participate in securing Bitcoin Layer 2 networks by operating validator nodes or delegating Bitcoin. Validator rewards are a key yield stream on platforms such as:

  • CoreDAO

  • Stacks

  • Botanix

By staking BTC as part of these networks, users can earn native token rewards while actively securing decentralized ecosystems.

3. Trading Strategies

SAL enables Bitcoin holders to engage in delta-neutral trading strategies on DeFi platforms that mitigate market volatility. Yield-generating strategies include:

  • GMX: Providing liquidity in a decentralized perpetual exchange where users earn BTC yields through liquidity provision.

  • Ethena: Implementing basis trading strategies, where BTC is used in a market-neutral approach to earn consistent returns without direct exposure to market swings.

  • Jupiter: Offering liquidity provision and yield farming opportunities in a way that minimizes exposure to market volatility.

These delta-neutral strategies provide stable yields in BTC by using innovative trading methods, making Bitcoin an active asset in DeFi.

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Last updated 7 months ago

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