Solv Protocol
About
Solv Protocol is an on-chain Bitcoin reserve layer that provides a unified, transparent infrastructure for Bitcoin across multi-chain ecosystems. It offers three core products: SolvBTC (1:1 tokenized Bitcoin), xSolvBTC (yield-bearing Bitcoin via Babylon staking), and BTC+ (dynamic yield vault aggregator). The protocol targets Bitcoin holders seeking to earn yield while maintaining Bitcoin exposure and enables integration with DeFi, RWA, and institutional liquidity.
Where Does Yield Come From?
Solv Protocol lets Bitcoin holders earn yield in two main ways:
1. xSolvBTC — Staking rewards via Babylon
When you hold xSolvBTC, your Bitcoin is staked through the Babylon system. Babylon's design lets people stake BTC in a way that keeps trust requirements low. The yield you earn comes from the staking rewards that Babylon generates.
2. BTC+ — A vault that spreads capital across strategies
BTC+ is a kind of "meta-vault" — it takes your funds and shifts them between different sub-vaults based on opportunity. These sub-vaults follow a mix of strategies, such as:
- Delta-neutral hedging (trades that try to remove price-direction risk)
- Lending protocols (lending out crypto for interest)
- Liquidity pools (providing funds for trading pairs)
- Other DeFi markets
How custody and distribution work
A layer called the Staking Abstraction Layer (SAL) separates two jobs: keeping the Bitcoin reserves secure, and putting Bitcoin to work earning yield. This lets the protocol deploy Bitcoin into institutional-grade yield strategies while still holding it safely using decentralized threshold signatures (FROST — a cryptographic method where multiple parties must sign off).
Yields are distributed according to the protocol's reward rules, and the system periodically rebalances (moves money between strategies) to try to keep risk and return in balance. The protocol charges fees on the yields it generates, though the introductory docs do not specify exact fee percentages.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Salus28-02-2023 - 10-03-2023 |
| The audit uncovered critical receiver compatibility flaws that were promptly resolved, along with several medium and low severity issues that were mostly addressed. Overall, the ERC3525 implementation demonstrates a reasonable security posture after remediation. |
Salus Security01-03-2023 - 10-03-2023 |
| The audit identified one high-severity rounding issue and a centralization risk, both resolved by the team, leaving no critical vulnerabilities and improving overall security posture before deployment. |
Salus26-07-202331-07-2023 |
| The audit identified several high and medium severity issues, all of which were resolved by the development team, resulting in a codebase that addresses the identified security concerns prior to deployment. |
Quantstamp09-07-2024 - 17-07-2024 |
| The audit revealed one mitigated medium-severity vulnerability and several low-severity issues, most of which were fixed or acknowledged before deployment. Overall security posture is reasonable given the addressed findings and the team's responsiveness. |
Salus Security14-12-202319-12-202301-01-2024 |
| The audit uncovered one high-risk DoS vulnerability and one low-risk upgradeability flaw, both of which were promptly fixed by the development team before deployment. |
Quantstamp29-01-2024 - 09-02-2024 |
| All high-severity vulnerabilities were fixed, and the team addressed most medium and low issues, demonstrating strong commitment to security. The remaining acknowledged risks are documented and considered acceptable given the multisig governance and planned Safe 1.5 integration. |
Salus Security22-12-2023 - 04-01-2024 |
| The audit found no critical or high-severity vulnerabilities, with the medium centralization risk and low compatibility issue both acknowledged by the team, indicating a relatively secure codebase with typical guardrail recommendations addressed. |
Salus Security21-06-2024 |
| The audit found only low and informational issues, indicating the SOLV token contract is relatively secure but carries centralization risk and could benefit from code quality improvements. |
Salus Security06-05-202315-05-2023 |
| The incremental audit found only low-severity and informational issues, all acknowledged or resolved, indicating a generally secure codebase with minor improvements. |
Salus Security22-05-202305-07-2023 |
| The audit uncovered three high-severity logic errors and one low-severity validation issue, all of which were promptly resolved by the development team, demonstrating effective remediation prior to publication. |
Quantstamp20-05-2025 - 26-05-2025 |
| The audit identified two medium-severity issues that were mitigated or fixed, alongside several low and informational findings; the code is generally well-designed but documentation and test coverage need improvement. |
OpenZeppelin25-11-2024 - 26-11-2024 |
| The audit identified only low-severity and informational issues, all of which were resolved, indicating a robust security posture for the Mainnet Minter contract. OpenZeppelin's assessment concludes the contract is well-written and thoroughly documented. |
OpenZeppelin12-12-2024 - 13-12-2024 |
| The audit identified one high-severity vulnerability and two low-severity issues, all of which were resolved by the team. The codebase demonstrates solid adherence to best practices, with the blacklist functionality now properly secured. |
Paladin Blockchain Security09-12-2024 |
| The audit found only informational issues with no critical or high-severity vulnerabilities, indicating a relatively secure integration of SolvBTC with LayerZero's OFT adapter after the recommended fixes. |
Offside Labs12-09-2025 - 20-09-2025 |
| The audit identified two medium-severity logic errors and one low-severity signature replay issue, all of which were either fixed or acknowledged by the team, indicating a generally secure codebase with minor residual risks. |
Backers
According to official news articles listed on Solv Protocol's insights page, the protocol has raised funding rounds: a $10M raise for Bitcoin reserve offering in May 2025, and total funding of $25M as of October 2024. The "Trusted by" section on the website displays logos of Yzi Labs, Blockchain Capital, and OKX Ventures, though it is not explicitly stated whether these are investors or ecosystem partners. Specific investor names and round details are not disclosed on the accessible official pages.
Legal
Legal form
Limited company (Solv Legos Ltd.)
Registration jurisdiction
Singapore
Status and notes
Operating entity disclosed as Solv Legos Ltd. Legal documents (Terms of Use, Privacy Policy, Disclaimer) available in documentation, governed by Singapore law with arbitration under SIAC. Not regulated by US federal or state agencies, not registered with SEC, does not offer securities services in the United States or to U.S. persons.