MicroStrategy: A leading investment company in the Web3 industry and the world’s largest independent BI company, MicroStrategy has consistently grown over its 20-year history.

 

Solv Protocol: The first "On-Chain MicroStrategy"

 

 

-- On November 28, 2024, Ryan, the founder of Solv Protocol, announced on Twitter: “I am thrilled to share that @SolvProtocol is about to launch the first-ever on-chain MicroStrategy.”

 

Project Overview

Solv Protocol is a Web3 liquidity infrastructure enabling users to transparently and trustlessly create, issue, and trade SFTs to access liquidity. Featured assets on Solv include: Vesting Voucher: Allocation management for fundraising. Convertible Voucher: Allows DAOs to gain liquidity using native tokens. Bond Voucher: Facilitates crypto institutions' entry into the debt market. Dream Voucher: Manages non-tokenized projects. With the launch of Solv V3 in Q2 2023, the platform became an on-chain fund platform empowering users to create, manage, issue, and settle diverse on-chain funds. Solv connects real-world assets to DeFi, unlocking liquidity for institutional and retail investors alike. By bypassing high costs and third-party intermediaries, Solv enables innovative financing solutions.

 

How It Works

BTC, the largest asset in the crypto industry, has a market capitalization exceeding $1.3 trillion. Historically, BTC holders have primarily held their assets without unlocking its potential value, unlike ETH. Solv Protocol aims to address this by staking BTC to unlock its full asset potential.

 

SolvBTC is a universal Bitcoin reserve token designed to unlock the $1 trillion+ potential of Bitcoin assets. Each SolvBTC token is pegged 1:1 to native BTC, ensuring its value mirrors Bitcoin. By depositing BTC or wrapped Bitcoin assets, holders can mint SolvBTC, converting their assets into a more flexible, DeFi-compatible form. As "Bitcoin’s Reserve for Everyone," SolvBTC enables holders to securely and freely transfer assets across blockchain ecosystems, eliminating current liquidity silos. With SolvBTC, holders can seamlessly participate in multi-chain DeFi without concerns about fragmented liquidity or risks associated with single wrapped BTC assets.

 

Capabilities of SolvBTC

 

- Transfer assets across blockchains such as Ethereum, BNB Chain, Avalanche, Arbitrum, Base, BOB, Mantle, and Merlin.

 

- Seamlessly participate in cross-chain DeFi ecosystems.

 

- Access liquidity and earn yields across platforms without inefficiencies or high transaction costs.

 

Through collaboration with Chainlink's Cross-Chain Interoperability Protocol (CCIP) and Free.tech, SolvBTC ensures secure and efficient cross-chain transactions, offering smooth liquidity and low fees.

 

Core Team

1. Ryan Chow (Co-Founder): Graduated from Beijing Foreign Studies University, previously co-founded Beijing Youzan Technology, applying blockchain to automotive industry databases. Former financial analyst at Singularity Financial, specializing in blockchain integration and financial regulation.

 

2. Will Wang (Co-Founder): Creator of "ERC-3525: Semi-Fungible Token Standard" and a veteran with 20 years of experience in financial IT. Led the development of the world’s largest banking system based on open platforms and distributed technology. Winner of the "Zhongguancun 20th Anniversary Outstanding Contribution Award."

 

3. Meng Yan (Co-Founder): Former Vice President of CSDN and a prominent KOL in the crypto industry.

 

Funding History

Solv Protocol has raised approximately $29 million across three funding rounds:

 

Angel Round

On November 10, 2020, raised $6M, led by Laser Digital, UOB Venture, Mirana Ventures, ApolloCrypto, Hash CIB, GeekCartel, ByteTrade, Matrix Partners China, BincVentures, and Emirates Consortium.

 

Seed Round

On May 8, 2021, raised $2M, led by Binance Labs.

 

On August 30, 2021, raised $4M, co-led by Blockchain Capital, Sfermion, and Gumi Cryptos Capital, with participation from DeFi Alliance, Axia 8 Ventures, TheLao, CMSholdings, Apollo Capital, Shima Capital, SNZ Holding, and Spartan Group.

 

On August 1, 2023, raised $6M, led by Japan's financial giant Nomura Securities' investment arm Laser Digital, alongside UOB Venture Management, Mirana Ventures, Emirates Consortium, Matrix Partners China, Bing Ventures, Apollo Capital, Hash CIB, GeekCartel, and Bytetrade Labs.

 

Strategic Round

On October 14, 2024, raised $11M, participated by Laser Digital, Blockchain Capital, and OKX Ventures.

 

Over three rounds, Solv Protocol raised $29M from prominent investors, including Binance Labs, Blockchain Capital, Laser Digital, Matrix Partners China, and OKX Ventures.

 

Tokenomics of Solv Protocol

SOLV is the native utility token of Solv Protocol, used for the following purposes:

 

1. Governance: SOLV token holders can vote on network governance decisions.

 

2. Staking: By staking SOLV tokens through the staking abstraction layer, stakers can earn protocol emissions.

 

3. Fee Discounts: SOLV token holders can enjoy fee discounts, including redemption fees for SolvBTC.

 

As of December 31, 2024, the maximum token supply of SOLV stands at 9.66 billion tokens (dynamic, potentially increasing through DAO governance under the Bitcoin Reserve Fundraising Program). The total genesis supply of SOLV is 8.4 billion tokens.

 

SOLV Token Distribution

- Exchanges & Community Airdrops: 15.50% of genesis supply; 13.48% of max supply.

 

- Team & Advisors: 13.00% of genesis supply; 11.30% of max supply.

 

- Community Rewards & DAO Treasury: 18.00% of genesis supply; 15.65% of max supply.

 

- Community Rewards (External Partners): 8.50% of genesis supply; 7.39% of max supply.

 

- Ecosystem Development: 8.14% of genesis supply; 7.08% of max supply.

 

- Business Development: 4.00% of genesis supply; 3.48% of max supply.

 

- Vesting Voucher Holders: 1.00% of genesis supply; 0.87% of max supply.

 

- Private Investors: 28.86% of genesis supply; 25.10% of max supply.

 

- Liquidity: 3.00% of genesis supply; 2.61% of max supply.

 

- Bitcoin Reserve Fundraising Program: 0.00% of genesis supply; 13.04% of max supply.

 

Solv initially plans to conduct three Bitcoin Reserve Offerings (BROs), each minting 42 million SOLV tokens, exclusively for Convertible Voucher sales. These offerings, scheduled for Q1, Q2, and Q3 of 2025, will enable the protocol to acquire BTC for its own reserves. Convertible Vouchers will mature in one year, with SOLV tokens claimable in Q1, Q2, and Q3 of 2026. Future Bitcoin Reserve Offerings will be governed by the DAO, potentially increasing token supply through network-managed issuance.

 

Total Value Locked (TVL): $2.27 billion.

 

 

Unique SolvBTC Addresses: 467,000, a 3x growth in 5 months, reflecting diversification from users of a few chains to a cross-chain ecosystem.

 

 

 

Current Roadmap

 

Q1 2025

- Listing on CEX and DEX platforms.

- Integration of SolvBTC and SolvBTC.LST with additional ecosystems such as BeraChain, Sonic, zkSync, Soneium, and Sei.

- Launch of the Exchange Earn campaign.

- Initiation of the second SOLV Points Campaign.

- Launch of the first Bitcoin Reserve Offering (BRO).

- Launch of SolvBTC.RWA.

 

Q2 2025

- Launch of the second Bitcoin Reserve Offering.

- Launch of SolvDAO.

- Integration of BTC ETFs into the SolvBTC core reserves.

- Introduction of additional SolvBTC.LST tokens.

- Tokenization of ETFs.

 

Comparison with MicroStrategy

 

MicroStrategy's Approach:

- Accumulated 386,700 BTC through $MSTR stock and convertible bond issuance.

- Implements a "Bitcoin Yield" strategy, effectively leveraging $MSTR shares as a proxy for long Bitcoin positions.

- The stock trades at a 2.4x premium to its BTC holdings, boosting shareholder returns and often outperforming Bitcoin itself.

 

Risks: A decline in demand for $MSTR shares or bonds could severely impact the premium and BTC yield. Buying $MSTR at high levels may pose significant risks.

 

Solv Protocol’s Approach:

- Deploys BTC into DeFi, allowing users to earn direct Bitcoin yields without waiting for price appreciation.

- Offers more than four types of Liquidity Staking Tokens (LSTs).

- Utilizes over 90% of Bitcoin reserves, actively generating yields rather than passively holding and relying on price increases.

 

Solv provides Bitcoin holders with an on-chain alternative to traditional reserves, offering transparency, permissionless operations, and accessibility for all—not just shareholders.

 

 

While MicroStrategy focuses on centralized Bitcoin holdings, Solv Protocol transforms BTC into an active, yield-generating force on-chain, unlocking greater financial potential for users. Over 11,600 BTC have been staked in SolvBTC.LST, generating yields and creating value for holders while maintaining liquidity. Of this, 10,600 BTC have been deployed across leading decentralized applications (dApps) and ecosystems such as Ethereum, Bitcoin mainnet, BNB Chain, Arbitrum, and Avalanche. This integration bridges BTC with DeFi, enabling various use cases like liquidity provision, cross-chain transfers, and yield generation.

Last but not least,  BingX is kicking off its first Launchpad:  Solv Protocol (SOLV). Join the Launchpad on 2025-01-10 at 07:00 (UTC). We're thrilled to see you here! 

Join Launchpad

 

Summary