Solv Protocol’s SolvBTC.AVAX token launched on Avalanche on May 16, 2025, to offer Bitcoin holders a novel way to earn yield by connecting their BTC to high-quality real-world assets. Instead of leaving their coins idle, users deposit Bitcoin into the Solv framework, where it is converted into deUSD, a stablecoin backed by U.S. Treasuries and private credit supplied by BlackRock and Hamilton Lane. That stablecoin collateral is then deployed on the Euler money-market, where it amplifies exposure to tokenized institutional funds such as BlackRock’s BUIDL and Hamilton Lane’s private-credit pool. At the same time, excess capital flows into liquidity pools on Balancer and LFJ, earning swap fees and additional AVAX rewards from Avalanche’s incentive program. Throughout this process, Re7 Labs continuously monitors positions and manages risk to maintain protocol safety and capital efficiency.
By combining yields from tokenized TradFi instruments with Avalanche’s native incentives, SolvBTC.AVAX delivers three layers of return: core Bitcoin yield derived from RWA-backed stablecoins and lending strategies, AVAX token rewards for liquidity provision, and swap-fee income from decentralized exchanges. This structure not only smooths out Bitcoin’s inherent volatility by linking it to uncorrelated assets, it also taps into the $22.1 billion on-chain RWA market. As the first Bitcoin-focused real-world asset product with deep backing from industry giants like BlackRock and Hamilton Lane, SolvBTC.AVAX sets a new standard for institutional-grade asset tokenization on Avalanche and drives broader adoption of Bitcoin in decentralized finance.
Despite its advantages, this multi-protocol yield stack introduces dependencies on off-chain custody, oracle accuracy, and evolving regulatory frameworks. Smart-contract security and market liquidity require ongoing oversight to ensure user confidence and protocol resilience. Nevertheless, SolvBTC.AVAX represents a landmark bridge between Bitcoin and traditional finance, unlocking yield for an estimated 94% of Bitcoin that remains idle and offering retail and institutional investors a compelling way to earn onchain returns.
