Solana DeFi protocol Hylo has launched $xBTC, a leveraged token designed to provide roughly 3x exposure to Bitcoin without the traditional liquidation mechanics associated with perpetual futures and margin trading.
Rather than requiring users to manage collateral, margin accounts, or individual leveraged positions, $xBTC packages leveraged Bitcoin exposure into a token that users can hold directly in a Solana wallet.
“3x BTC exposure on Solana is now as simple as holding a token,” Hylo said in its launch announcement, describing $xBTC as a “liquidation-resistant leveraged token that lives in your wallet.”
Hylo has also introduced a 0% minting fee for $xBTC during its launch week.
Hylo Expands Beyond Leveraged $SOL
$xBTC represents the next major addition to Hylo’s leveraged token lineup after $xSOL, which launched in July 2025 and remains the protocol’s flagship product.
Hylo designed its xAssets to simplify leveraged exposure by turning positions into standard tokens. Users can access $xBTC at any venue on Solana supported by compatible DEX aggregators.
The model differs from perpetual futures, where traders typically need to manage collateral, funding rates, liquidation thresholds, and active positions.
Hylo argues that tokenizing leveraged exposure could make these strategies more accessible to a broader group of Solana users. However, liquidation resistance does not eliminate the risks associated with leverage. Leveraged tokens can still amplify losses when the underlying asset moves against the position and may experience volatility decay during fluctuating markets.
Hylo team member Shoom previously said $xSOL and future xAssets will use adjusted rebalance bands ranging from 2.54x to 3.84x, compared with the previous 3x to 4.3x range. The change aims to reduce volatility decay across the product line.
$xBTC Advances Hylo V2’s Broader xAsset Strategy
The launch follows Hylo’s June 17 announcement of Hylo V2, the protocol’s largest planned expansion to date.
At the center of V2 sits the xAsset Engine, a framework designed to support leveraged tokens across multiple markets. Hylo plans 4 main categories: xCrypto for assets such as $SOL and $BTC, xEquities for tokenized stocks and indexes, xCommodities for markets such as gold, silver, and oil, and xYield for yield-bearing assets.
Hylo has identified potential future equity products linked to TSLA, MSTR, SPY, and NDAQ. The protocol sees an established market for similar products in traditional finance.
V2 Reshapes Hylo’s Collateral and Rebalancing Model
Hylo V2 also replaces its Stability Pool with an Earn Pool model and introduces multi-asset collateral. Under V2, the protocol plans to rely more heavily on arbitrageurs and liquidity providers for market-driven rebalancing.
When collateral values decline and leverage rises, the system can sell assets for $USDC. When leverage falls, available $USDC can purchase additional collateral.
Hylo also plans to expand $hyUSD backing beyond Solana liquid staking tokens. Its multi-asset architecture could incorporate Bitcoin, real-world assets, yield-bearing instruments, and $USDC as overflow collateral. Hylo has also explored deploying excess liquidity into tokenized Treasury products.
Turning Complex Strategies Into Tokens
Solflare co-founder and CEO Vidor Gencel highlighted the token structure behind Hylo’s approach, arguing that protocols can reduce complexity by packaging strategies into assets that existing wallets and applications already support.
“A token that wraps your protocol's behavior rides on rails every wallet already has,” Gencel said. “If people can understand it, they can buy it.”
With $xBTC now live, Hylo has begun extending that model beyond $SOL. The protocol says $xBTC is only the beginning, with its xAsset framework eventually targeting any market that has reliable oracles, sufficient onchain liquidity, and a risk profile compatible with its system.
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