Solv Protocol and Chainlink have launched the SolvBTC–BTC Secure Exchange Rate feed, a price oracle that ties Solv’s wrapped BTC token, SolvBTC, to real‑time proof-of-reserves rather than relying solely on market quotes. The feed is live on Ethereum mainnet and Solv says it will expand to other chains, including BOB.
Instead of using only market data, the feed merges exchange-rate logic with Chainlink’s Proof of Reserve attestations to publish an on‑chain redemption rate — the amount of BTC a SolvBTC token can be redeemed for. The oracle also enforces programmable upper and lower bounds derived from reserve data, which helps reduce price manipulation and makes the feed safer for collateralized lending platforms like Aave.
Launched in April 2024, SolvBTC represents staked or custody-backed bitcoin that holders can use across DeFi to earn yield while keeping BTC exposure. Users deposit BTC and mint SolvBTC, which is accepted in vaults, DEXs and lending markets.
Chainlink’s solution builds on its decentralized oracle network and cross-chain tools (including CCIP) to verify that on-chain supply matches actual reserves, enabling wrapped assets to serve as reliable collateral across blockchains. Solv CEO Ryan Chow called the launch a “major evolution in DeFi security,” and Chainlink’s Johann Eid said it raises the security standard for wrapped assets.
This approach improves transparency, but risks remain: oracle outages, delayed reserve attestations and cross‑chain bridge vulnerabilities can impact pricing and collateral safety. Protocols and users should monitor feeds and risk parameters before using wrapped assets as high‑value collateral.
Source: CoinDesk. Read the original coverage for full details.