On November 21, MicroStrategy's stock price rose more than 10%, hitting a new high, and its trading volume also surpassed NVIDIA and Tesla, becoming the stock with the largest trading volume in the US stock market that day. It can be said that MicroStrategy dominated the US stock market that day with Bitcoin.
Rewind to August 11, 2020. On that day, MicroStrategy (MicroStrategy) Chairman Michael Saylor announced that MicroStrategy had purchased about 21,454 Bitcoins for $250 million, becoming the first publicly traded company to incorporate Bitcoin into its financial strategy.
At that time, MicroStrategy's stock price was around $15, but now it has broken through $500, a 35-fold increase, far exceeding Bitcoin's own growth.
MicroStrategy's "All In" Bitcoin approach can be described as simple and straightforward: buy. Not only did the company use its reserve funds to purchase Bitcoin, but MicroStrategy also issued MSTR shares (ATM) and convertible bonds to buy Bitcoin. As of the publication, MicroStrategy holds 402,000 Bitcoins.
Furthermore, The Wall Street Journal reported that the secondary market has even produced an MSRT2 leveraged ETF specifically for MSTR, and its market value has exceeded $5 billion, providing another boost to MSTR's soaring.
Is MicroStrategy enough?
Not only MicroStrategy, but also another driver of this bull market - ETFs, BlackRock's IBIT already holds more than 500,000 Bitcoins. According to statistics, TradFi and various governments have already held more than 14% of Bitcoins, but the liquidity of these assets is idle and cannot flow into the chain.
MSTR is not like the former GBTC and Luna rootless flywheel, after all, it is supported by real assets. But users still need to know what the purchased stocks really mean? If the funds used to buy one Bitcoin are used to buy MSTR stocks, the ultimate value behind it is not equivalent to one Bitcoin, let alone the fact that holding it alone cannot create other value.
Going a step further, with the decrease in block rewards and the increasing pressure on miners, how can we ensure the security and sustainability of the Bitcoin network?
To solve the above problems, we must go beyond the brutal Buy and Hold model.
How can Solv Protocol become the on-chain MicroStrategy?
If Buy is the common goal of everyone, then upgrading Hold to Earn is not only a big step for Bitcoin, but also for the entire industry.
Not only TradFi represented by MicroStrategy, but the Bitcoin with a total market value of nearly $2 trillion is the largest gold mine in the crypto world.
Committed to becoming the "on-chain MicroStrategy", Solv has released the vitality of the BTC ecosystem through SolvBTC, with more than 25,000 Bitcoins earning income through Solv - ranking 7th compared to BTC ETFs, 6th compared to companies, and 5th compared to national reserves. The era of Buy and Earn is coming to us.
Solv's Growth History
In the DeFi track, the most important thing is security and reliability.
The Solv team is composed of a group of experienced and professional members, and the core team has a deep background in financial analysis, blockchain technology integration, and industry applications. They have accumulated rich experience in large financial institutions, blockchain technology R&D, and IT system design, and have led many industry-influential projects. Team members have also participated in the design of the innovative blockchain standard - ERC-3525, committed to promoting the deep integration of technology and application scenarios. These backgrounds and professional knowledge ensure the security and technical reliability of Solv in the DeFi field.
The professional team has also won the favor of capital, and Solv Protocol has received investments from well-known institutions such as Binance Labs, Blockchain Capital, OKX, Laser Digital, MPCI, IOSG and Gumi, with a total financing amount of over $25 million.
During the period from 2020 to 2023, Solv has accumulated its own technology, built an on-chain fund platform, and created basic income opportunities for core assets such as USDC, ETH, and BTC, and has accumulated rich practical experience. These explorations have laid a solid foundation for the subsequent business expansion.
At the beginning of 2024, Solv quickly captured the opportunity for the rise of the BTC ecosystem, relying on its deep understanding of industry trends and forward-looking insights into the market. From the development history of Solv, it can be seen that Solv is not a so-called track speculator, nor is it a common "throw-and-use" project party, but a rare explorer and innovator in the industry, and also has extremely strong product update and iteration capabilities.
On-chain MicroStrategy: Releasing BTC Liquidity
At the beginning of 2024, the BTC ecosystem started to rise, various BTC L2s appeared crazily, capital was heavily deployed, and the community was flocked. Relying on its deep understanding of the DeFi field and its profound insights into the development of the track cycle, Solv realized that the BTC ecosystem is different from the ETH L2s, the chain is important, but the most important thing is the underlying asset - BTC. And the key is to attract BTC with a reasonable and secure income channel. Solv then launched SolvBTC, lowering the threshold for the Bitcoin ecosystem and unifying the standard. Relying on its strong technical capabilities and accumulation, as well as its excellent reputation in the industry, Solv quickly reached cooperation with various protocols and platforms, allowing SolvBTC to rise step by step and eventually become the largest liquidity in the Bitcoin ecosystem.
Overall, SolvBTC is a new type of token aimed at breaking the liquidity constraints of Bitcoin, and through its unique design, it allows Bitcoin assets to have higher liquidity and application value in the multi-chain ecosystem. It adopts a layered reserve system, dividing the reserve assets into core reserves and innovative reserves, which ensures that each circulating SolvBTC is supported by 1:1 Bitcoin or trusted wrapped Bitcoin assets, while achieving transparent and real-time reserve proof, providing users with higher security and credibility.
The core idea of SolvBTC is to solve the problem of liquidity fragmentation in the current blockchain ecosystem by integrating the liquidity of Bitcoin. Whether it's Ethereum, BNB Chain, or more niche chains like Mantle or Merlin, SolvBTC can seamlessly cross-chain, thanks to its use of the Chainlink cross-chain protocol and Free.tech technology. This cross-chain capability allows users to freely shuttle between DeFi applications on multiple chains without worrying about complex conversion processes or high transaction costs.
At the same time, SolvBTC not only provides flexible asset management methods, but also opens up new income channels for Bitcoin holders. While ensuring asset security, users can apply SolvBTC to various DeFi scenarios, such as liquidity mining, collateral lending, or yield optimization, allowing Bitcoin assets to unleash greater potential.
The true innovation of SolvBTC lies in the fact that it redefines the role of Bitcoin in the blockchain ecosystem in an open, flexible and compatible way, ensuring the security of user assets while breaking the boundaries of traditional Bitcoin applications, and bringing users a truly decentralized financial experience. Through the integration of transparent reserve management, powerful cross-chain functions, and flexible income models, SolvBTC provides a new, efficient, secure and reliable solution for the use of Bitcoin in the DeFi world.
Solv has currently shaped four high-quality BTC yield assets, namely Babylon LST, CoreDAO LST, Ethena LST, and Jupiter LST, with a utilization rate of SolvBTC reaching 90%.
From Maximum Liquidity to Industry Standard
Winner takes all. Becoming a platform and standard is the ultimate goal of protocol development, and with its solid underlying technical framework, Solv has introduced the Staking Abstraction Layer (SAL) concept, preparing to become the underlying standard of the BTC ecosystem by setting industry standards.
SAL is the core infrastructure of the Solv Protocol, aiming to simplify the staking process of Bitcoin across multiple ecosystems and provide a unified interface for holders. In the SAL ecosystem, four key roles collaborate to ensure the transparency and security of the staking process:
1. Staking Protocols: These protocols are the infrastructure for Bitcoin staking, mainly divided into three categories:
·Layer 1 or Layer 2 chains based on the PoS consensus mechanism: similar to the staking mechanism of Ethereum.
·Protocols that accept BTC assets and provide decentralized services: such as oracles or cross-chain bridges, similar to the re-staking protocols in the Ethereum ecosystem.
·General staking protocols: including various DeFi protocols that accept BTC assets and generate yields.
2. LST Issuers: LST issuers provide users with liquidity staking tokens, allowing them to maintain asset liquidity while staking BTC. Unlike Ethereum, the issuance of BTC LSTs involves the interaction between EVM chains and the Bitcoin mainnet, so a transparent and secure mechanism is needed to win user trust.
3. Staking Guardians: This is a new role introduced by SAL, responsible for the transparency, integrity, and security of the staking process. They undertake asset custody, transaction verification, and co-signing responsibilities to ensure the accuracy of staking transactions and prevent user asset loss.
4. Yield Distributors: Due to the multi-chain nature of Bitcoin staking, yield distribution becomes complex. Users' potential returns not only include the rewards from staking protocols but may also have additional incentives from LST issuers. These rewards may come from the Bitcoin mainnet, EVM networks, or other ecosystems. The role of yield distributors is diversified, including converting rewards to BTC, converting points to tokens, and assisting users in claiming rewards.
By coordinating these roles, SAL provides Bitcoin holders with a secure, transparent, and efficient staking environment, allowing them to easily participate in staking and earn rewards across multiple ecosystems.
The ultimate goal of SAL is to set industry standards, not only creating a stronger platform effect for the protocol itself but also lowering the threshold for the Bitcoin ecosystem, attracting more users and assets, and paving the way for large-scale application.
Solv's Connections and Expansions
Integration and application in DeFi are the key, and the Solv ecosystem not only has TVL but has also expanded to 15 chains and 50+ DeFi protocols, becoming an important part of the Bitcoin ecosystem that cannot be ignored. SolBTC has also become one of the essential underlying assets for many protocols.
Even with such a large TVL, the APY of SolvBTC has not fallen behind. Based on Solv's current four high-quality BTC yield assets, excluding Babylon, which has no clear APY, the average annualized yield of the remaining three products is 15%, roughly estimated to generate around $400 million in revenue per year. As Solv's integration solution with traditional compliant capital channels is launched, this revenue scale will continue to expand.
Not only that, how can DeFi be without nesting? On the DeFi protocol Pendle, users can choose to hold YT-SolvBTC.BBN, further amplifying the potential returns of SolvBTC.
Solv's journey is not limited to the traditional DeFi track, as the recently popular on-chain contract platform Hyperliquid also has Solv's presence - Solv has announced its participation in Hyperliquid's spot auctions.
According to the community members' outlook, Solv may become the standard solution for Hyperliquid to enter the BTC-denominated and BTC-collateralized market, similar to the case of Ethena's USDe being integrated into Bybit and included in the margin system. As the largest liquidity provider in the Bitcoin ecosystem, and with SAL gradually unfolding, Solv is well-positioned to become the sole channel for the unified BTC cross-chain standard on the Hyperliquid mainnet. SolvBTC can not only provide more liquidity and yield-generating opportunities for Hyperliquid, but also offer a wider range of use cases for SolvBTC users.
Community-Centric
According to data from the Solv official website, it already has over 529,000 users, with an extremely large community.
At the same time, Solv is actively collaborating with various platforms to convey information and gameplay of the BTC ecosystem to new users who have not yet been exposed to it. Solv has partnered with the Binance Web3 wallet, bringing a large number of users into the BNBchain ecosystem, and also bringing a lot of activity to the BTC ecosystem. Earlier, Solv's Cryptopedia event with the OKX Web3 wallet had over 200,000 participants.
MicroStrategy's holding of 400,000 Bitcoins has a market value of over $100 billion; in comparison, Solv Protocol has already accumulated over 25,000 Bitcoins on-chain, and Solv's valuation imagination can be infinitely raised. Solv Protocol recently stated that it will soon release Solv's token economic model - this will be the most innovative design in the market, a sustainable growth flywheel that will provide Bitcoin holders with the best returns ever. Coupled with the incentives of the token model, Solv's development may have just begun.
Allowing Bitcoin holders not only to enjoy price appreciation but also to obtain additional returns from DeFi activities. This is what MicroStrategy and ETFs need, and it is also what Solv is building - a permissionless, transparent, and open platform that redefines Bitcoin reserves, transforming it from a passive value store to a vibrant financial engine.
Welcome to join the official BlockBeats community:
Telegram subscription group: https://t.me/theblockbeats
Telegram discussion group: https://t.me/BlockBeats_App
Twitter official account: https://twitter.com/BlockBeatsAsia
