Once seen as a peer-to-peer digital currency, Bitcoin has evolved into an asset worth over $1.3 trillion, with increasing utility at the forefront of decentralized finance (DeFi).

Despite its immense value and significance, Bitcoin has been criticized for its slow adaptation to innovations in the DeFi space and the broader on-chain innovations. Staking, for instance —where users lock their assets into a network to receive rewards— remains inaccessible for Bitcoin holders.

In contrast, Ethereum, which has supported staking from the outset, currently has around 28% of its total supply allocated to it. If Bitcoin holders staked even a fraction of their assets at similar levels, an additional $330 billion in value could be unlocked.

So why does Bitcoin struggle to gain similar momentum in staking?

Staking Bitcoin presents several challenges that have hindered broader participation. The process often involves cumbersome cross-chain transactions, making it difficult for users to engage in staking activities. Additionally, Bitcoin lacks the native smart contract functionality, limiting its ability to support sophisticated staking protocols. Furthermore, maintaining liquidity while staking is a common issue for Bitcoin holders, as they often find it difficult to access their assets while participating in staking, further discouraging widespread adoption.

In response to Bitcoin’s limitations, Solv Protocol has introduced an innovative approach to enable greater participation in DeFi through its Staking Abstraction Layer (SAL).

With BNB Chain, Ceffu, and Chainlink as launch partners, Solv’s SAL represents a comprehensive smart contract suite designed to simplify and standardize Bitcoin staking across multiple blockchain ecosystems. The idea is to abstract away the complexities that have made Bitcoin staking intimidating for both users and developers. SAL facilitates seamless interaction between Bitcoin mainnet and EVM-compatible chains, while integrating with LST issuers, staking protocols, and validators.

Solv’s partnership with BNB Chain brings the scalability and efficiency of Binance’s ecosystem, while Ceffu offers secure, enterprise-grade custody solutions. Chainlink’s technology enables safe and reliable data transfers across blockchains, allowing Bitcoin to interact smoothly with other networks.

Through these partnerships, Solv offers a user-friendly platform where Bitcoin holders can earn yields without facing the complexities that have traditionally hindered BTC staking.

SAL is more than just another staking platform; it’s a suite of smart contracts designed to simplify and standardize Bitcoin staking across chains. It removes the complexities that have made Bitcoin staking intimidating for both users and developers. SAL facilitates seamless interaction between Bitcoin’s mainnet and Ethereum-compatible chains while integrating with LST issuers, staking protocols, and validators.

SAL facilitates seamless interaction between Bitcoin mainnet and EVM-compatible chains. Source: Solv

To achieve this, SAL unites key players in the ecosystem. Staking platforms like Babylon and CoreDAO are integrated into SAL, allowing users to stake their Bitcoin with fewer steps and earn rewards. LST issuers like Solv and Lombard enable users to keep their Bitcoin liquid while staking. Validators like Ceffu and Fireblocks ensure all transactions are secure and accurately match staked Bitcoin with the LSTs issued. SAL also works with yield distributors like Pendle to guarantee that rewards are distributed fairly and transparently.

Users can participate in restaking by staking their Bitcoin on networks like Babylon, leveraging Bitcoin’s economic security to support Proof of Stake (PoS) ecosystems. They can also earn validator rewards by staking their Bitcoin on Layer 2 networks such as CoreDAO and Stacks, earn yields by operating validator nodes or delegating BTC.

For those seeking to minimize risk, Bitcoin holders can participate in delta-neutral trading strategies curated by Solv, on platforms such as GMX and Ethena, earning yields in BTC through liquidity provision and basis trading, with minimal exposure to market volatility. These diverse opportunities transform Bitcoin from a passive store of value into a dynamic, yield-generating asset, all while maintaining liquidity.

SAL is designed to address the challenges of Bitcoin staking—such as cross-chain complexity, limited programmability, and liquidity constraints—while also building the infrastructure for long-term growth. "We strive to make it easy for people to participate in Bitcoin staking with minimal friction," said Ryan Chow, CEO of Solv Protocol. "By simplifying the process, Bitcoin holders can now engage in staking, earn yields, and maintain liquidity without needing to navigate the complexities that previously held Bitcoin back from its full potential."

BTC staking can turn passive assets into yield-generating opportunities. Source: Solv

Chow also emphasized the importance of partnerships with industry leaders such as BNB Chain, Ceffu and Chainlink: “We are creating an ecosystem where Bitcoin holders can not only store value but also grow it through yield-generating opportunities.”

As Bitcoin staking continues to evolve, SAL is poised to play a pivotal role in driving mass adoption. With over 20,000 BTC already staked through Solv’s platform, the momentum is clear. As more protocols and validators integrate with SAL, Bitcoin is set to transform from a static asset into a fully integrated player in the onchain ecosystems.

This post is commissioned by Blockman and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.

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