The Standardization Dilemma and Solutions for Bitcoin Staking

Bitcoin, as a $1.75 trillion asset, has long been the largest "sleeping pool of funds" in the crypto world. While many projects have attempted to unlock the liquidity of Bitcoin, most have failed to truly leverage the BTCFi market.

Currently, the main challenge facing the Bitcoin staking field is the lack of unified standards. Unlike Ethereum, the Bitcoin ecosystem does not have a centralized organization similar to the Ethereum Foundation to promote the standardization process. This has resulted in Bitcoin's liquidity being dispersed across different chains and platforms, creating "liquidity islands" that are difficult to integrate and utilize efficiently.

To address this issue, the Bitcoin ecosystem urgently needs to establish a universal standardized framework to integrate the dispersed Bitcoin liquidity resources. This requires a leader capable of driving the standardization process, promoting the establishment of unified technical specifications, thereby bringing broader applicability and liquidity to the Bitcoin staking market.

As the current largest Bitcoin staking platform, Solv proposed the Staking Abstraction Layer ( SAL ) concept, aiming to aggregate the dispersed BTC liquidity across the entire chain and provide a scalable and transparent unified solution.

SAL divides the core participants of the Bitcoin staking ecosystem into four main roles: staking protocols, staking validators, yield allocators, and LST issuers. Based on this, SAL has designed key modules that cover the entire process, including LST generation services, staking validation services, transaction generation services, and yield allocation services.

Through these modules, SAL effectively integrates the technical differences of various protocols within the Bitcoin ecosystem, providing a clear operational framework for different roles. This not only simplifies the participation threshold in the Bitcoin stake ecosystem but also offers a unified solution that can effectively meet the needs of multiple parties and promote co-construction and sharing.

The launch of SAL is expected to generate a diversified yield solution based on the entire chain of BTC, enabling Bitcoin holders to obtain a diverse and dynamic yield stream without affecting liquidity. It mainly includes:

1. Use Restaking to achieve Bitcoin staking rewards
2. Obtain reward income through validating nodes
3. "Delta Neutral" trading yield strategies
4. DeFi yields in various scenario use cases

These diverse sources of income will greatly improve the funding efficiency of Bitcoin, with the potential to revitalize this trillion-dollar quality crypto asset and open up new space for the development of the BTCFi ecosystem.

Although the implementation of SAL still faces challenges, it provides a clear standardized framework and a co-creation and sharing solution for the Bitcoin staking ecosystem. This not only brings significant collaborative effects but also hopes to trigger a series of chain reactions in the Bitcoin market, paving the way for the large-scale application of BTC staking business.