The Road to Standardization: Solv's Staking Abstraction Layer Brings New Opportunities for BTCFi

Bitcoin, as a $1.75 trillion asset, has long been the largest dormant pool of funds in the crypto world. Although the DeFi ecosystem has made multiple attempts to unlock Bitcoin's liquidity, the results have always been limited, failing to truly leverage the BTCFi market.

In contrast, the Ethereum staking ecosystem has developed rapidly, with over 34.55 million ETH staked, accounting for nearly 29% of the total supply. This is largely attributed to the clear staking standards set by the Ethereum Foundation, which laid the foundation for the rapid expansion of the ecosystem.

The Bitcoin ecosystem lacks a leader who can drive the standardization process due to its highly decentralized nature. This has led to a slow development of the Bitcoin stake market and increasingly fragmented liquidity. Currently, the yield-generating Bitcoin is dispersed across 95 chains, 448 protocols, and 766 liquidity pools, necessitating a unified standard to integrate these fragmented liquidity resources.

As the largest Bitcoin staking platform currently, Solv has proposed the concept of a staking abstraction layer (SAL), aiming to aggregate the decentralized BTC liquidity across the entire chain. SAL divides the core participants of the Bitcoin staking ecosystem into four roles: staking protocol, staking validators, yield distributors, and LST issuers. Around these roles, SAL has designed core modules including LST generation services, staking verification services, transaction generation services, and yield distribution services.

Through these modules, SAL not only integrates the technical differences of various protocols but also provides a clear operational framework for all participants. This greatly lowers the participation threshold and offers a unified solution for co-construction and sharing among multiple parties. Currently, several protocols, including BNB Chain, Babylon, and ChainLink, have joined the SAL ecosystem.

The launch of SAL is expected to bring a diversified income ecosystem for Bitcoin staking:

1. Users can earn local token rewards through Restaking.

2. Participate in the security maintenance of Layer2 networks to earn validator rewards.

3. Achieve stable returns in DeFi through strategies such as "Delta Neutral".

4. Utilize LST for further operations in DeFi to maximize overall returns.

These diversified sources of income will transform Bitcoin from a passive store of value into an income-generating asset, opening up new development space for BTCFi.

The SAL standardized framework launched by Solv is expected to become the "infrastructure" of the Bitcoin ecosystem, revitalizing this trillion-dollar quality crypto asset and paving the way for the large-scale application of BTCFi. This initiative is both challenging and full of imaginative potential, and may trigger a series of chain reactions in the Bitcoin market.