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Solv Protocol has launched a yield-bearing Bitcoin token on the Avalanche blockchain, giving institutional buyers extra publicity to yield alternatives backed by real-world property, or RWAs.
On Might 16, the protocol unveiled SolvBTC.AVAX, a token that connects Bitcoin (BTC) to real-world property like US Treasurys and personal credit score offered by BlackRock and Hamilton Lane.
The brand new token was developed by way of a seven-way partnership involving Solv, Avalanche, Balancer, Elixir, Euler, Re7 Labs, and LFJ, the corporate stated.
Solv Protocol founder Ryan Chow stated the token is a solution to hyperlink Bitcoin to “real-world financial cycles” in uncorrelated property corresponding to US authorities bonds and personal credit score, versus BTC’s typical boom-and-bust four-year cycle.
The token makes use of a multi-protocol technique to generate yield involving Elixir’s deUSD stablecoin, Treasurys provided by BlackRock and Hamilton Lane by way of Elixir, and included on the lending platform Euler to extend RWA publicity.
“The yield is acquired in BTC format,” a Solv Protocol spokesperson informed Cointelegraph
Solv is a Bitcoin-centric staking platform that provides yield methods throughout numerous blockchains and decentralized finance functions. The protocol instructions greater than $2.3 billion in complete worth locked, in line with business knowledge.
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The race to supply Bitcoin yield intensifies
Demand for Bitcoin yield options has grown amid the current wave of institutional adoption of digital property.
Earlier this month, crypto trade Coinbase launched the Bitcoin Yield Fund, which goals to supply annual returns of between 4% and eight% on BTC holdings.
The yield shall be earned by way of a cash-and-carry technique, which entails buying BTC within the spot market and promoting a corresponding futures contract, Coinbase stated.
CoinShares analyst Satish Patel predicted the growing interest in Bitcoin yield in December, noting that extra buyers now see BTC “not solely as a retailer of worth but additionally as a way to generate yields.”
Whereas there are numerous methods to generate Bitcoin yield, corresponding to leveraging derivatives or yield farming, Michael Saylor’s Strategy launched its personal “BTC Yield” metric to measure the efficiency of its funding technique.
Technique’s BTC Yield, which measures how a lot further Bitcoin it’s buying relative to its excellent shares, is at the moment 15.5% year-to-date, according to the corporate.
Journal: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets