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Binance Labs-backed Solv Protocol is bringing Bitcoin staking to Base via the newly launched Coinbase wrapped Bitcoin token, cbBTC.
On Sept. 12, Coinbase revealed that its cbBTC token was now live on Ethereum (ETH) and the layer 2 chain Base. Solv Protocol shared news of its launch of Bitcoin (BTC) staking on Base via in a press release shared with cypto.news.
The platform says the unveiling of the cbBTC token, which is backed 1:1 by BTC holdings on Coinbase, offers another opportunity for users on Base to leverage their bitcoin in the decentralized finance market.
cbBTC holders to mint SolvBTC to participate in DeFi
According to Solv Protocol, cbBTC holders can tap into DeFi opportunities by minting SolvBTC. Notably, users can broaden their participation in the market by converting SolvBTC into SolvBTC.BBN, a liquid staking token offering access to further Bitcoin staking yields.
Integrating cbBTC as a reserve asset is a significant step towards unifying Bitcoin liquidity and making the Bitcoin DeFi experience more accessible to users.
Ryan Chow, co-founder of Solv Protocol.
Coinbase’s launch of cbBTC allows its BTC holders to convert assets to the new wrapped token, much like BTC holders have done with wrapped Bitcoin (WBTC).
For cbBTC, the process will involve the transfer of Bitcoin from user accounts to either Base or Ethereum addresses. The BTC converts to cbBTC and can be used across DeFi protocols such as MakerDAO (MKR), Aave (AAVE) and Compound (COMP).
Solv Protocol adds to this growing market with its liquid staking token, SolvBTC.
Other platforms offering liquid staking or restaking opportunities to the Bitcoin community include Lombard Finance, Swell, and AcreBTC.