jakiro
Author: haotian
Bitcoin staking agreement @SolvProtocol completed a new round of $11M financing, with a total financing amount of $25M, and its staking dispatch center has also gathered over 20,000 yuan, including SolvBTC.BBN, SolvBTC.ENA, SolvBTC.CORE, etc.BTC liquidity.
Recently, Solv proposed the concept of Staking Abstraction layer (SAL) pledge abstraction layer. How should we understand it?Let me briefly talk about my opinion:
1) Some people classify Solv Protocol in the Babylon ecosystem, because Solv provides Babylon with more than 20% of BTC pledged assets and is the main liquidity provider of Babylon ecosystem.This is reasonable to understand, but Solv Protocol, which holds a lot of liquidity, is not limited to this. To be precise, the two should belong to a “parallel” relationship.
The reason is: Although Babylon uses precision encryption algorithms to lock Native BTC assets in the direction of BTCFi, it can give Solv, Lombard and other platforms some security consensus, Babylon does not generate original liquidity, and the liquidity of the Babylon ecosystem is provided by Solv and other platforms.
To be simple, if Babylon is regarded as the Eigenlayer of the Bitcoin ecosystem, the role of Solv Protocol should be Lido. Solv provides pledged assets liquidity, while Babylon only strengthens the narrative on it.The two are a win-win relationship from beginning to end, and there are no contradictions or contradictory points.
2) It is precisely because of the liquidity trump card that Solv proposed the new narrative concept of Staking Abstraction layer (SAL) pledge abstraction layer, with the goal of further aggregating the dispersed BTC liquidity in the entire chain and providing a scalable and transparent unified solution.plan.
The Solv Protocl staking abstract layer goal is to absorb BTC liquidity in many scenarios such as Ethereum EVM, BNBChain, CeDeFi, etc., and provide unified and transparent application standards for these isomorphic or heterogeneous chain assets.If Babylon only absorbs native BTC liquidity, Solv can integrate all liquidity related to BTC assets and uniformly dispatch it through the platform.
Specifically: The SAL staking abstract layer consists of a series of smart contracts, which can simplify the interaction between users and the Bitcoin staking protocol and promote a convenient staking experience. At the same time, the abstract layer will define a complete set of LST asset issuance and distributed node staking verification., profit distribution and Slash rules and other common functions.
For example: the LST issuer may include LST protocols including Solv, Lombard, BedRock, etc.; the pledge verifier may be a qualified complete asset storage entity including CeFFu, Cobo, Fireblocks, etc.; and the income allocator may includePendle, Antalpha and other DeFi protocols, etc.
From a business perspective, Solv seized on the problem of excessive liquidity of Bitcoin and tried to build a liquidity aggregation service layer to accelerate the aggregation and application circulation of BTC assets.
3) Why does Solv Protocol do such a thing?Isn’t it okay to just rely on continuously expanding the BTC fund pool?This is related to the characteristics of the BTCFi track. Since the application scenarios of BTC assets are very wide, from the DeFi Wrapped version to the original assets stored in cold wallets, to assets flowing into BlackRock and other ETF funds, etc., a unified Bitcoin asset scheduling platform is made.It seems simple, but in fact it is not limited to the chain. It also needs to coordinate resources in various fields, handle various relationships well, and ultimately connect related assets to “on the chain”.
To a certain extent, according to its vision, the Staking Abstraction layer that Solv needs to do is to enable BTC scattered in different environments (on-chain and off-chain) to have unified standard circulation and application, thereby releasing the potential of BTCFi andvalue.
Just imagine, on Ethereum, which has a highly perfect infra, the ETH pledge rate is maintained at 28%. In the future, we will continue to expand and distribute the BTC pledge rate and make it shine in asset interest generation. How far is there to go?Walk?
