SolvBTC Enhances Trust with Chainlink's Real-Time Collateral Verification
Solv and Chainlink Boost SolvBTC Security
Solv Protocol has partnered with Chainlink to enhance the security and transparency of SolvBTC, its liquid Bitcoin staking token. This integration brings real-time verification of BTC reserves directly into SolvBTC's pricing, fostering greater user trust.
The SolvBTC-BTC Secure Exchange Rate feed combines exchange rate calculations with Chainlink's Proof of Reserve (PoR), delivering an on-chain redemption rate firmly based on verifiable collateral.
Key Benefits of the Integration:
- Enhanced Transparency: Real-time verification of BTC reserves.
- Manipulation Resistance: Built-in upper and lower bounds based on reserve data.
- Improved DeFi Security: Safer for use in decentralized lending markets.
"We’re excited to work with Chainlink to launch a Secure Exchange Rate feed. This marks a major evolution in DeFi security," said Ryan Chow, Co-Founder and CEO of Solv.
How It Works
SolvBTC, launched in April 2024, allows BTC holders to participate in DeFi and earn yield while maintaining BTC exposure. Users deposit BTC to mint SolvBTC, which can then be used across various DeFi protocols.
Chainlink's PoR verifies that the on-chain supply of tokenized assets is fully backed by actual reserves. This is particularly crucial for wrapped assets circulating within DeFi.
By combining PoR with price feeds via Chainlink's CCIP, Solv enables wrapped assets to function securely as collateral across multiple blockchains.
"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,” stated Johann Eid, Chief Business Officer at Chainlink Labs.
Looking Ahead
The SolvBTC-BTC Secure Exchange Rate feed is currently live on the Ethereum mainnet, with plans for expansion to other chains.
For projects launching new tokens or requiring rigorous security audits, platforms like Codeum offer comprehensive solutions to ensure the integrity and safety of blockchain applications.