The Solana DeFi protocol Hylo has been put in line to leverage a currency xBTC with the goal of providing users with about three times the amount of bitcoin. Unlike long-term contracts and bond transactions, the product is sealed as a directly held token, and users do not need to manage the collateral, bond accounts or leverage positions separately.

First week is free for casting.

Hylo indicates that xBTC can be stored directly in Solana's wallet and can be used in the Solana trading scene that supports the relevant DEX polymer. The protocol is also providing xBTC with 0% casting fees for the first week on the line.

Expand from xSOL to xBTC

XBTC is another major product launched by Hylo after xSOL. XSOL, which came online in July 2025, remains the core product of the agreement. Hylo's idea is to convert the leverage position into a standard token to lower the threshold for use.

This model is not the same as a permanent contract. The latter usually requires traders to manage mortgage rates, money rates, clearing lines and warehouse changes on a continuous basis. Hylo tries to compress such operations into the token structure, allowing users to gain leverage exposure in a way that is closer to spot holding.

However, the lack of a traditional clearing mechanism for products does not mean that the risk of leverage disappears. If the price of bitcoin is not favourable, the currency may still magnify the loss; fluctuations and losses may also occur in the event of a shock.

Rebalance the downs.

The Hylo team member Shoom had previously indicated that xSOL and subsequent xAsset products would be rebalancing between 2.54 and 3.84 times the leverage range, down from the previous three to 4.3 times. The agreement states that this was to reduce the volatility of the entire product line.

V2 Extension of multi-asset products

Before xBTC went online, Hylo announced the Hylo V2 plan on June 17th. This was the largest expansion of the agreement to date, with the core being a framework called xAsset Engineering to support cross-market leverage.

  • xCrypto: Overwrite encryption assets such as SOL, BTC
  • xEquitiers: Covering monetized stocks and indices
  • xCommodities and xYield: Covering goods and income class assets

Hylo also mentioned the possible future introduction of stock-based products linked to TSLA, MSTR, SPY and NDAQ.

Synchronization of collateral structure

Hylo V2 will also replace Stability Pool with Earth Pool and introduce a multi-asset mortgage structure. The agreement plans to rely more on arbitragers and liquidity providers for market rebalancing.

The system is designed to sell assets in exchange for USDC when the collateral values fall and leverage rises; when leverage falls, the system can buy more collateral from USDC available.

Hylo is also planning to expand the hyUSD supporting assets from the solana liquid-carrying tokens to a wider range of categories, including bitcoin, real-world assets, revenue-type instruments and USDC. The agreement is also looking at the placement of excess liquidity in a monetized-debt product.