The Standardization Path of Bitcoin Staking: Innovative Attempt of Solv Staking Abstraction Layer

Bitcoin, as the largest "sleeping capital pool" in the crypto world, has long failed to fully unleash its potential. Although there have been multiple attempts to enhance the liquidity of Bitcoin assets, most have not truly leveraged the BTCFi market. Effectively releasing Bitcoin liquidity is a hundred billion dollar question and a challenge that the Bitcoin ecosystem, especially staking projects, must address.

Solv, as a leading project in the Bitcoin staking field, has proposed a forward-looking solution - SAL( Staking Abstraction Layer ). This innovative design aims to integrate cross-chain Bitcoin liquidity through standardization, bringing breakthroughs to the BTCFi ecosystem.

Challenges Facing the Bitcoin Ecosystem

Compared to Ethereum, the Bitcoin ecosystem faces unique challenges in the standardization of staking.

• The lack of centralized driving forces similar to the Ethereum Foundation makes it difficult to quickly reach a consensus.
• BTC liquidity is severely fragmented, dispersed across multiple chains and platforms.
• Lack of unified staking standards and cross-chain liquidity mechanisms

These factors have led to the slow development of the Bitcoin staking ecosystem, making it difficult to fully unleash its potential. Establishing a universal standardized framework is key to the development of BTCFi.

Solv's SAL stake abstraction layer solution

As a market-leading Bitcoin staking platform, Solv has proposed the concept of SAL staking abstraction layer, aimed at aggregating the decentralized BTC liquidity across the entire chain. SAL includes the following core modules:

• Stake parameter matrix: abstract key parameters, supporting cross-role collaboration
• Staking verification service: Ensures the correctness and integrity of transactions
• LST Generation Service: Responsible for the issuance and redemption of BTC LST
• Transaction Generation Service: Automatically generate and broadcast stake transactions
• Earnings distribution service: transparent calculation and distribution of stake earnings

SAL provides a unified technical framework and operational specifications for parties such as staking users, staking agreements, LST issuers, and custodians, greatly simplifying the participation threshold.

Diversified Income Opportunities Brought by SAL

Based on the SAL cross-chain functionality, Bitcoin holders can obtain diversified rewards:

1. Earn local token rewards through Restaking
2. Participate in Layer 2 network security maintenance to earn validator rewards
3. Utilize strategies like "Delta Neutral" to achieve stable trading returns.
4. Participate in DEX, lending and other DeFi applications to earn profits.

These diversified income opportunities are expected to transform Bitcoin from a mere store of value into a productive asset that generates income, opening new space for BTCFi.

Conclusion

The Solv SAL solution provides a unified standardized framework for the Bitcoin staking ecosystem, expected to revitalize this trillion-dollar quality crypto asset. Although it is full of challenges, SAL brings enormous imagination space to the Bitcoin ecosystem and is expected to become a key infrastructure driving the development of BTCFi.