[TEMP CHECK] Onboard xSolvBTC to Aave V3 BOB Instance

[TEMP CHECK] Onboard xSolvBTC to Aave V3 BOB Instance

Date: 2025-06-23

Author: Solv Protocol & ACI

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Summary

This proposal seeks to onboard xSolvBTC to Aave V3 BOB Instance, once it's live, if [ARFC] Deploy Aave v3 on BOB eventually pass and is live.

Motivation

xSolvBTC is a yield-bearing Bitcoin token representing staked Bitcoin in the Babylon ecosystem, recently rebranded from SolvBTC.BBN; Pegged 1:1 with Bitcoin, it enables users to earn staking rewards from Babylon while unlocking liquidity and additional yields in the DeFi ecosystem. Since launching in July 2024, more than 10,000 xSolvBTC have been minted. Now xSolvBTC is redeemable for SolvBTC at a 1:1 ratio(0.2% redemption fee will be charged for now).

Somehow we expect to see xSolvBTC minting & redemption automated at the smart contract level in the next few weeks, which means SolvBTC and xSolvBTC can be converted to each other in one block without any fees except the gas cost. In this case, xSolvBTC will be sharing all the DEX liquidity of SolvBTC.

Benefits to onboarding xSolvBTC

Integrating xSolvBTC as collateral on AAVE v3 on BOB Pool will offer several benefits:

1. Enhanced Liquidity:

xSolvBTC will significantly enhance liquidity and trading volumes on AAVE, fueled by the diverse yield opportunities within the xSolvBTC ecosystem — including Solv RP, DeFi yield strategies, and points farming across leading Layer 2 networks.

2. Increased Yield Opportunities:

With AAVE v3 on BOB supporting xSolvBTC as collateral, users can unlock greater capital efficiency by leveraging their xSolvBTC holdings. This integration drives higher potential returns from lending and borrowing activities, particularly for WBTC and SolvBTC.

3. Innovative DeFi Strategies:

The integration paves the way for the development of advanced DeFi strategies involving WBTC, SolvBTC, and xSolvBTC. This is expected to spur increased demand for supplying and borrowing across these assets, enriching the AAVE ecosystem.

4. Solv Points Incentives:

To mark the launch, users can earn Solv RP with a 6x multiplier by lending xSolvBTC — the highest multiplier ever offered — during an exclusive one-month boosting campaign.

Solv Points System Portal: https://app.solv.finance/points

DEFI Page: https://app.solv.finance/defi

These benefits are aligned with similar successful integrations on other lending protocols in the DeFi space, where xSolvBTC has enabled users to enhance their yield opportunities and drive higher protocol fees.

Integrating xSolvBTC into AAVE v3 on BOB represents a strategic opportunity for both platforms. This partnership will enhance liquidity, attract new users, and drive innovative DeFi strategies within the BOB Chain ecosystem. By combining robust liquidity with AAVE’s lending capabilities, we can foster significant growth and reinforce our leadership in the DeFi and BTC-Fi sectors.

Specification

Risk Parameters will be provided at ARFC stage by Risk Service Providers.

Asset Overview

• Token Name: xSolvBTC
• Token Symbol: xSolvBTC
• Contract Address on BOB: 0xcc0966d8418d412c599a6421b760a847eb169a8c

Chainlink Oracle: details incoming

Useful links

• POR: https://data.chain.link/feeds/ethereum/mainnet/xsolvbtc-por
• Audits: https://github.com/solv-finance/Audit
• Official Website: https://app.solv.finance/xsolvbtc
• Documentation: https://docs.solv.finance/

Github: https://github.com/solv-finance

Disclaimer

ACI (Aave Chan Initiative) is not directly affiliated with Solv Protocol or BOB Foundation and did not receive compensation related to this proposal.

Next Steps

1. Publication of this TEMP CHECK and escalation to TEMP CHECK Snapshot.
2. If 1 pass, publish an ARFC to continue gathering community and Service Providers feedback and escalate to ARFC Snapshot.
3. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal.

Copyright

Copyright and related rights waived under CC0.