Solv and Chainlink launch a new tool that verifies BTC backing for SolvBTC in real time.
- SolvBTC now uses Chainlink to prove its bitcoin reserves live on the blockchain.
- The system offers a safer way to use SolvBTC in DeFi lending platforms.
- New price feed includes boundaries to protect users from price manipulation.
SolvBTC Gets Real-Time Reserve Proof
Solv Protocol has made changes to how its bitcoin-backed token, SolvBTC, works. It now includes real-time proof of reserves thanks to a new link with Chainlink. This proof shows the actual BTC that supports each SolvBTC token. The goal is to give users more trust in the token’s value and increase transparency.
How the Secure Exchange Rate Feed Works
The new SolvBTC-BTC Secure Exchange Rate combines regular market prices with proof of reserve data. This helps create a redemption rate that can’t easily be faked. The pricing model also adds upper and lower safety limits based on how much BTC is truly backing the token. This makes it safer for use in DeFi lending platforms like Aave.
Powered by Chainlink’s Technology
Chainlink’s Proof of Reserve (PoR) uses its decentralized oracle network to verify if a token like SolvBTC is fully backed by the right amount of crypto. By using this tech, Solv can show that each token is truly supported by bitcoin, even if that bitcoin is stored off-chain. This adds an extra layer of trust for people using SolvBTC in DeFi applications.
Live on Ethereum, More Blockchains Coming
The system is now live on the Ethereum mainnet. Solv plans to support other chains too, including BOB. The idea is to let SolvBTC work across multiple blockchains while keeping its price accurate and safe.
Why This Matters for DeFi
SolvBTC lets BTC holders access DeFi services without selling their bitcoin. They can earn returns and still hold BTC exposure. By working with Chainlink, Solv aims to protect these users from unfair pricing and lower the risk of using wrapped assets. The new system could help boost trust in wrapped assets across the DeFi world.
Source: coindesk.com
