Solv Protocol has partnered with decentralized oracle provider Chainlink to introduce real-time collateral verification for SolvBTC, its bitcoin-backed liquid staking token. The new SolvBTC-BTC Secure Exchange Rate feed integrates both exchange rate calculations and proof of reserves, ensuring SolvBTC’s redemption value is transparently backed by verifiable BTC collateral.

Unlike conventional price feeds that only reference market data, this system ties SolvBTC pricing directly to confirmed reserve balances, creating an on-chain redemption rate. The feed also applies reserve-based upper and lower bounds, reducing manipulation risks and making SolvBTC safer for use in decentralized lending markets such as Aave.

“This marks a major evolution in DeFi security, allowing protocols to more accurately price wrapped assets using redemption rates rooted in verifiable collateral,” said Ryan Chow, Co-Founder and CEO of Solv.

The secure feed is live on Ethereum and will expand to other chains, including BOB.

Launched in April 2024, SolvBTC allows BTC holders to mint a liquid representation of staked bitcoin that can be used across DeFi applications, including vaults, lending protocols, and decentralized exchanges, while still earning yield.

Chainlink’s Proof of Reserve (PoR) framework underpins the integration, verifying that tokenized assets like wrapped BTC remain fully backed by real reserves. Combined with Chainlink’s cross-chain interoperability protocol (CCIP), the solution strengthens wrapped asset security across multiple blockchains.

“By merging real-time collateral verification with exchange rate logic, this solution delivers a redemption rate rooted in cryptographic truth, raising the standard for wrapped assets across DeFi,” said Johann Eid, Chief Business Officer at Chainlink Labs.