If you’re not familiar with the concept of BTC re-staking and how it works, I covered it extensively in my article BTC Re-Staking Is Here on September 25, 2024. That article outlines several re-staking strategies and even explains how to leverage Pendle YT for staking with additional leverage. If you haven’t read it yet, I highly recommend checking it out.

However, all the BTC re-staking strategies discussed earlier are based on Ethereum’s mainnet. With gas fees on the mainnet being so high, they’re not practical for small individual investors. Today, I’m introducing a BTC staking strategy that not only uses Ethereum’s Layer 2 but also lets you earn “five benefits from one Bitcoin.” Specifically, these include:

1. Babylon staking rewards, similar to staking yields from assets like stETH and eETH

2. Babylon airdrop points

3. Solv airdrop points

4. Avalon airdrop points

5. Liquidity mining rewards

These rewards are generated through the use of solvBTC.BBN and solvBTC. But what do these tokens actually represent? What role do Solv and Avalon play in this setup? And how do you get started with liquidity mining? I’ll cover all of this in detail.

You’ve probably noticed that “Solv” appears frequently in the list above. That’s because it’s the key to maximizing your BTC re-staking yields. So, let’s first understand what Solv is.

1. What Is Solv?

Solv Protocol uses a unique staking abstraction layer to unleash the potential of Bitcoin assets efficiently. Through SolvBTC, users can convert Bitcoin into a tokenized form, which can then be used within decentralized finance (DeFi) ecosystems to earn various rewards—all while keeping your BTC liquid.

Solv Protocol is backed by prominent investors like Binance Labs, Blockchain Capital, and Laser Digital. The protocol has been security-audited by top firms, including Quantstamp, Certik, SlowMist, Salus, and Secbit.

1.1 What Is SolvBTC?

SolvBTC is a reserve token for Bitcoin, designed to unlock the trillion-dollar value of Bitcoin assets. By holding SolvBTC, you can seamlessly access cross-chain DeFi opportunities and earn rewards. SolvBTC is backed 1:1 by Bitcoin, ensuring Bitcoin holders can earn rewards without compromising liquidity.

1.2 What Is SolvBTC.BBN?

SolvBTC.BBN represents staked Bitcoin within the Babylon ecosystem. It leverages Bitcoin’s economic security to support the safety of proof-of-stake (PoS) networks. By holding SolvBTC.BBN, you’re essentially staking Bitcoin to secure Babylon’s chain and earning rewards in return.

Key features of SolvBTC.BBN include:

• 1:1 peg to Bitcoin: Each SolvBTC.BBN token is backed 1:1 by Bitcoin, ensuring your asset value remains unchanged.

• Yield generation: Earn native token rewards from Babylon’s PoS chain by staking BTC while maintaining liquidity.

• DeFi utility: SolvBTC.BBN can be used in Babylon’s DeFi applications, liquidity pools, and cross-chain protocols, enhancing its usability.

In short, Solv Protocol offers BTC holders an innovative staking platform that allows them to participate in a diverse DeFi ecosystem and earn significant rewards without losing liquidity.

Meanwhile, Solv has its own airdrop program. But if you want to participate in Solv’s BTC staking, the first step is to activate your Solv points system.

1.3 How to Activate the Solv Points System

Click [link] to enter the Solv points system, as shown below.

RHAEK7 is my referral code. By using this code, you can join Solv, and I’ll earn invite points. Click “Redeem Invite Code” and follow the steps in the image below.

Joining involves three simple steps: entering the invite code, following the official account on X (Twitter), and signing a wallet transaction. Just follow the instructions step by step, and you’ll be good to go.

2. Participate in the Solv Ecosystem

Currently, you can engage with Solv’s ecosystem across multiple blockchains. I recommend starting with DeFi projects on the Base chain. Base is one of the fastest-growing L2 networks, with the potential to launch its own token in the future.

Here’s the usual process: First, convert your BTC (e.g., cbBTC, tBTC) into SolvBTC. Then, swap SolvBTC for SolvBTC.BBN at a 1:1 ratio. However, there’s a way to get even more SolvBTC.BBN—by swapping directly on a DEX.

Click [link] to go to Aerodrome, as shown below.

You’ll notice that swapping 1 cbBTC gives you 1.00288 SolvBTC.BBN, giving you an extra 0.36% yield.

Next, head to the Defi menu at the top of Solv’s page and find the Base chain, as shown below.

Click [link] to go to Avalon, where you can deposit SolvBTC.BBN and borrow SolvBTC, as shown in the image.

By depositing SolvBTC.BBN, you earn triple airdrop points: Babylon, Solv, and Avalon. The borrowed SolvBTC also earns Avalon airdrop points.

You’ll need to pay interest on the borrowed SolvBTC. However, if you provide liquidity for SolvBTC-cbBTC here, you can earn an APY of up to 105%, as shown below.

Conclusion

By following the strategies outlined above, you can leverage Ethereum L2 networks to maximize your BTC earnings at minimal cost and enjoy five different benefits from one Bitcoin! These methods let you earn Babylon staking rewards, Solv and Avalon airdrop points, and additional rewards through liquidity mining. It’s a great way for small-scale investors to manage their assets efficiently.

That said, remember that these are BTC staking strategies, not re-staking. If you’re interested in BTC re-staking, the only available option right now is Etherfi’s service on Ethereum’s mainnet, with eBTC as the liquid staking token. For more on re-staking yields, check out my article BTC Re-Staking Is Here for more in-depth details and leveraged strategies.

In summary, the gates to BTC staking and re-staking have opened, and a new chapter in liquidity is just beginning!

For airdrop updates, follow the new official WeChat account (the old one got banned):

About Airdrop Reference

Airdrop Reference is an innovative blockchain education and promotion platform aimed at spreading basic blockchain knowledge and helping ordinary users understand and participate in the development of blockchain technology. The mission of this project is to lower the entry barriers to blockchain, promote high-quality blockchain projects, and allow more people to enjoy the benefits of the Web3.0 era.

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