Solv Protocol, a financial services provider for bitcoin holders, has partnered with decentralized oracle network Chainlink to integrate real-time verification of Solv’s actual BTC reserves backing its liquid token, SolvBTC, directly into its price feed. This integration enhances transparency and builds greater trust for users.
Unlike traditional price feeds that rely solely on market data, the new SolvBTC-BTC Secure Exchange Rate feed combines exchange rate calculations with real-time proof of reserves, delivering an on-chain redemption rate firmly anchored in verifiable collateral.
Additionally, the mechanism features built-in upper and lower bounds based on reserve data, making it resistant to manipulation and safer for use in decentralized lending markets such as 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,” said Ryan Chow, Co-Founder and CEO of Solv, in a press release shared with CoinDesk.
The SolvBTC-BTC Secure Exchange Rate feed is now live on the Ethereum mainnet, with plans to expand to other chains, including BOB.
SolvBTC, launched in April 2024, is a bitcoin-backed liquid staking token that enables BTC holders to participate in decentralised finance (DeFi) ecosystems and earn yield while maintaining BTC exposure. Users can deposit BTC and mint SolvBTC, a liquid representation of staked BTC, usable across various DeFi protocols, including vaults, decentralized exchanges (DEXs), and lending platforms.
Chainlink’s Proof of Reserve (PoR) leverages its decentralized oracle network to verify that the on-chain supply of tokenized assets, like stablecoins or wrapped assets, is fully backed by actual reserves held off-chain or on other blockchains.
With billions of dollars in wrapped assets circulating within DeFi, transparent, reliable pricing mechanisms are increasingly critical. By combining PoR with price feeds atop Chainlink’s existing cross-chain interoperability via CCIP, Solv enables wrapped assets to function securely as collateral across multiple blockchains.
Johann Eid, Chief Business Officer at Chainlink Labs, summarized it well: “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.”
