Solv Protocol data deep dive: the largest BitcoinFi protocol at over $1B TVL
Thread572 words
Data-driven look at Solv: over $1B TVL four months after launch, solvBTC above 18k BTC TVL with about 80% utilization, and solvBTC.BBN filling its 250 BTC cap on Babylon. Includes a correction: real user count is roughly 378k.
Key claims
solvBTC TVL above 18k BTC including Merlin
About 80% utilization
Babylon 1,000 BTC cap reached in 5 blocks
๐๐๐ญ๐-๐๐ซ๐ข๐ฏ๐๐ง ๐๐ง๐๐ฅ๐ฒ๐ฌ๐ข๐ฌ ๐จ๐ ๐ ๐๐ข๐ญ๐๐จ๐ข๐ง๐
๐ข ๐๐ข๐๐ง๐ญ'๐ฌ ๐๐ข๐ฌ๐
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@SolvProtocol is a decentralized Bitcoin reserve protocol that aims to unlock the full potential of >$1 trillion in mostly idle $BTC capital.
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In just four months, it has become the largest BitcoinFi protocol with over $1B in TVL.
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๐๐ฒ๐'๐ ๐ต๐ฎ๐๐ฒ ๐ฎ ๐น๐ผ๐ผ๐ธ ๐ฎ๐ ๐๐ต๐ฒ ๐ฑ๐ฎ๐๐ฎ! ๐ โคต๏ธ
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Solv addresses the fragmentation of $BTC liquidity across various wrapped assets through a multi-chain "liquid yield" token that allows $BTC holders to capitalize on yield opportunities.
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Since its launch four months ago, the supply of @SolvProtocol's flagship asset $solvBTC has steadily grown, hitting over 11.5k BTC in TVL on EVM chains.
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Adding the Bitcoin L2 @MerlinLayer2 (not tracked on @DuneAnalytics), $solvBTC TVL amounts to >18k $BTC, making @SolvProtocol the largest BitcoinFi protocol in the market.
The leading chains in terms of $solvBTC TVL are:
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โ @BNBChain with >10k $solvBTC
โ @MerlinLayer2 with 6.6k $solvBTC
โ @ethereum + @arbitrum with almost 1k $solvBTC
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Since launch in April, >190k unique users have interacted with @SolvProtocol, the majority of which (160k users) on @BNBChain, likely driven by easy entry that @binance's $BTCB provides.
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What is noticable too, is that >14.8 $BTC in $solvBTC TVL is being utilized in other protocols.
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More specifically:
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โ >4.3k $BTC Bridged out for airdrops (Linea, Scroll, Mezo, Fuel)
โ >4.7k $BTC staked in $solvBTC LSTs (SolvBTC.BBN & SolvBTC.ENA)
โ >4.4k $BTC Bridged to @Coredao_Org
โ >1.4k $BTC deployed in @BNBCHAIN DeFi
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This puts SolvBTC at a massive ~80% utilization rate, highlighting the product-market fit of the product and the utility behind $solvBTC.
A key driver of growth going forward will likely be Solv's @babylonlabs_io LST $solvBTC.BBN.
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With last week's launch of Babylon mainnet phase-1, a 1,000 $BTC global deposit cap was reached in just 5 blocks.
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The massive demand for $BTC staking is evident not only from how quickly the cap was reached but also from the 53.4 $BTC (>$3 million) spent on tx fees by stakers.
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For context, securing a stake of 250 $BTC (maximum for a single LST protocol) would require an extraordinary investment of roughly $700k in tx fees (assuming equal amounts are staked per block).
> Data from @Maksym_Web3
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As one of only two protocols, @SolvProtocol filled the protocol-specific cap, depositing 250 $BTC, making it the current leader:
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โ @SolvProtocol - 250 $BTC
โ @Bedrock_DeFi - 250 $BTC
โ @LorenzoProtocol - 129 $BTC
โ @Pumpbtcxyz - 118 $BTC
โ @Lombard_Finance - 2 $BTC
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In total, $solvBTC.BBN has already accumulated >2.8k $BTC, amassed >25k users and offers the highest returns in the market.
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In the first deposit round, @SolvProtocol covered over 12 $BTC in gas fees for users and $solvBTC.BBN can already be used in DeFi and various airdrop farms (incl. the @fuel_network pre-deposit program).
> Data from @0xOptimus
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It is hence not surprising, that @SolvProtocol is increasingly leaving the competition behind, with $solvBTC being the 3rd largest wrapped $BTC asset in the market, only behind @binance's $BTCB and $WBTC, while $solvBTC.BBN is growing quickly too.
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NFA but DYOR anon.
โ ๏ธ Correction:
Above, I mention "Since launch in April, >190k unique users have interacted with @SolvProtocol"
This was based on data that was not tracking properly.
The real user count is roughly 378k across @BNBCHAIN, Ethereum, @Arbitrum and @0xMantle.
Additional users on @MerlinLayer2 are also not included in this statistic.
Pretty impressive.
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