Solv Protocol has introduced a Bitcoin staking token on Solana, named SolvBTC.JUP, to attract BTC holders amid the growing yield opportunities in the cryptocurrency market. This liquid staking derivative aims to provide BTC-denominated yield from transaction fees on Jupiter Exchange, one of Solana's leading decentralized exchanges. Currently in its pilot phase, the initiative is focused on bolstering Bitcoin's presence in the decentralized finance (DeFi) sector. Solv targets an annual percentage return (APR) of about 12%, significantly higher than typical BTC staking yields on layer-2 (L2) networks, which often offer returns in the low single digits. To mitigate risks associated with price volatility in Jupiter's liquidity pool, Solv employs a delta neutral strategy by hedging traders' net open interest on centralized exchanges. Jupiter Exchange currently holds approximately $1.3 billion in total value locked (TVL). Additionally, various Bitcoin-native L2s are exploring staking options, while Ethereum's EigenLayer is also integrating wrapped Bitcoin to attract BTC holders for restaking purposes.

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