Signum Newsletter 28
Weekly alpha for your weekend reads
Signum Capital Newsletter
4 min read·
This edition of the newsletter dives into Solv Protocol, which positions itself as an "on-chain Bitcoin Reserve" that transforms idle Bitcoin holdings into yield-generating assets through its innovative Staking Abstraction Layer (SAL), having already secured $3.28 billion in TVL. The protocol bridges traditional finance and DeFi through partnerships with major custodians and exchanges, while maintaining security through a tiered reserve system and comprehensive audits, ultimately aiming to unlock the potential of over $1 trillion in Bitcoin assets. We'll also share some interesting articles, portfolio updates and market highlights.
1. Research Articles
a) The State of Interop (2025)
• The article discusses how interoperability protocols have evolved significantly in 2025, with bridging becoming faster, cheaper, and more secure through intent-based design, while also powering major crypto developments like chain abstraction and tokenization of assets.
• The ecosystem has matured with modular interop protocols offering customizable verification options, widespread adoption of interop token standards by institutions like PayPal and BlackRock, and increased focus on interoperability across major blockchain ecosystems including Ethereum, Solana, and various chain clusters.
The State of Interop (2025)
This article is a snapshot of where the interop ecosystem stands now and how interop is the bedrock that powers everything, from token issuance to intents to chain abstraction.
b) Capital, AGI, and human ambition
• The article argues that once AI can replace human labor, money and capital will become more powerful than ever while human leverage will dramatically decrease, as AI will be easier to buy and replicate than human talent, and institutions will have less incentive to care about human welfare.
• This could lead to a static society where current power imbalances are locked in and amplified, with those who have significant capital when labor-replacing AI arrives maintaining permanent advantages, while opportunities for human ambition and social mobility become severely limited or extinct.
Capital, AGI, and human ambition
AGI will shift the relative importance of human v non-human factors of production, reducing the incentive to care about humans while making existing powers more effective and entrenched
c) TEE + Web3: Do you know what you trust in?
• The article explores how Trusted Execution Environment (TEE) technology is being increasingly adopted in Web3 projects, providing hardware-level security where sensitive data and computations are processed in encrypted "enclaves" that even operating systems cannot access in their raw form.
• TEE is being implemented across various Web3 use cases including confidential computing, secure smart contracts, validity proofs for Layer 2 chains, Ethereum block builder decentralization, and AI agent deployment, though it faces some limitations including centralized attestation mechanisms and potential side-channel attacks.
TEE + Web3: Do you know what you trust in?
In October, the term "TEE (Trusted Execution Environment)" began frequently appearing in X feeds. This surprised me since TEE has traditionally been a niche topic, primarily discussed in systems...
2. Portfolio Highlights
a) Tellar
• In 2024, Teller Protocol experienced good growth with a total volume of $35.75M (a 1,272% increase) and introduced key features including the Teller ATM for simplified borrowing, the Teller Widget for platform integration, and Rollover Loan Extensions for flexible loan management.
• The protocol saw success particularly in memecoin and GameFi token lending across multiple chains (Mainnet, Polygon, Arbitrum, and Base), with popular tokens like $PRIME, $JESUS, and $MOG leading the volume, while also establishing partnerships with various DeFi organizations like Paragons DAO, Vision, and Wasabi.
Teller Wrapped: 2024 Year in Review
The Teller protocol has evolved over the years, supporting the first on-chain mortgages in 2022 and becoming the largest ENS lending protocol in 2023. Now, Teller has shown the largest loan volume for select memecoins, GameFi coins, and others in 2024. Stats And Metrics This year, Teller reached new heights
b) DoraHacks
• DoraHacks partners with Kaia Chain for a hackathon
Contribute to @KaiaChain ecosystem, earn KLAY rewards!Kaia is funding open-source projects in DeFi, NFTs, Dev Tools & more.
No KYC needed, multiple submissions welcome.
Deploy on the fastest EVM L1 with full ETH compatibility.
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c) Moonbeam
• Diode is building a Zero Trust Network (ZTN) on Moonbeam that enables secure, private communications through encrypted messaging, file sharing, and collaboration without relying on vulnerable centralized services.
• The platform rewards node operators for providing bandwidth and handling traffic, with ambitious plans to grow from 60 to 1,500 nodes by March 2025, while already serving over 2,000 users since June and facilitating over 100,000 on-chain transactions in regions with internet restrictions like North Korea and China.
Diode Case Study: Secure Communication on Moonbeam | Moonbeam
Discover how Diode leverages Moonbeam to provide decentralized, secure communication solutions, overcoming internet restrictions and challenges in the Web3 era.
3. Solv Protocol
Bitcoin's trajectory reached new heights in 2024, marked by the SEC's approval of spot BTC ETFs and an unprecedented price surge to $100,000. With a market capitalization approaching $2 trillion and ETF sector flourishing at $113.01 billion in assets under management, Bitcoin has firmly established itself in mainstream finance. However, a significant challenge persists: the majority of Bitcoin holdings remain idle, generating no yield for their owners.
Current state
While Bitcoin commands 56% of the cryptocurrency market, its potential as an income-generating asset remains largely untapped. Traditional yield opportunities have historically been limited to either centralized providers requiring KYC deposits or basic DeFi lending markets offering minimal returns. The limitations are stark: Aave, Ethereum's largest lending market, offers a mere 0.2% APY for Wrapped BTC despite holding over $3.6 billion in locked value.
Solution: Solv Protocol
Positioning itself as an "on-chain Bitcoin Reserve," Solv Protocol aims to unlock the potential of over $1 trillion in Bitcoin assets through innovative yield-generation strategies. The protocol has achieved remarkable success, securing 31,900 BTC (approximately $3.28 billion) in Total Value Locked and serving over 529,000 users globally. With a 90% utilization rate and 33.18% market share in Bitcoin restaking, Solv Protocol has emerged as a dominant force in the BTC-Fi landscape.
Staking Abstraction Layer (SAL)
At the heart of Solv Protocol lies the SAL, a groundbreaking framework that unifies Bitcoin staking across diverse ecosystems. The SAL coordinates four key components:
• LST Issuers who manage token creation and distribution
• Staking Protocols that facilitate yield generation
• Staking Guardians ensuring security
• Yield Distributors managing returns
This unified infrastructure eliminates the traditional fragmentation in Bitcoin staking while simplifying complex processes for users and institutions alike.
SolvBTC
SolvBTC introduces sophisticated features designed to maximize Bitcoin's utility while maintaining security:
• A tiered reserve system separating core assets (native Bitcoin, BTCB, cbBTC) from observed assets (WBTC, BTC.b, M-BTC) for optimal risk management
• Dual token options including pegged LSTs for stable Bitcoin representation and yield-bearing LSTs for enhanced returns
• Cross-chain compatibility spanning 15 blockchains through Chainlink CCIP and Free Tech integration
• Seamless DeFi protocol integration enabling diverse yield strategies
Security
Security stands as a cornerstone of Solv Protocol's infrastructure, implemented through multiple layers:
• Strategic partnerships with industry-leading custodians including Ceffu, Cobo, and Fireblocks
• Real-time reserve verification through Chainlink's Proof of Reserves system
• Solv Guard, an advanced security framework utilizing multi-signature capabilities and smart contract controls
• Comprehensive audits by top firms including Quantstamp, Certik, and SlowMist
The road ahead
Solv Protocol is strategically positioned to bridge the gap between traditional finance and DeFi, transforming Bitcoin from a passive store of value into a dynamic, yield-generating asset. Through its innovative approach and robust partnerships, the protocol is reshaping Bitcoin's role in the global financial system while maintaining its fundamental characteristics as a secure, decentralized reserve currency.
The protocol's success in attracting both retail and institutional participants suggests a growing recognition of Bitcoin's potential beyond simple storage. As traditional finance continues to embrace cryptocurrency, Solv Protocol's infrastructure provides the essential bridge for Bitcoin to evolve into a more versatile and productive asset within the broader financial ecosystem.
As Bitcoin continues its integration into mainstream finance, Solv Protocol's role becomes increasingly vital. By providing the infrastructure and tools necessary for Bitcoin to function as both a store of value and a yield-generating asset, the protocol is helping to unlock the next phase of cryptocurrency's evolution in global finance.
*Disclosure: Signum Capital’s holds a position in the company mentioned above and the information provided on this newsletter is for general informational purposes only and does not constitute professional nor investment advice.
