Solana's DeFi protocol Hylo has launched its leveraged token xBTC, aiming to provide users with approximately 3x Bitcoin exposure. Unlike perpetual contracts and margin trading, this product is packaged as a directly held token, eliminating the need for users to separately manage collateral, margin accounts, or leveraged positions.

First week free of casting fees

Hylo states that xBTC can be stored directly in Solana wallets and used in Solana trading scenarios that support relevant DEX aggregators. The protocol also offers a 0% minting fee for xBTC during its first week of operation.

Extending from xSOL to xBTC

xBTC is another major product launched by Hylo after xSOL. xSOL was launched in July 2025 and remains the core product of the protocol. Hylo's idea is to convert leveraged positions into standard tokens to lower the barrier to entry.

This model differs from perpetual contracts, which typically require traders to continuously manage collateral ratios, funding rates, liquidation lines, and position changes. Hylo attempts to compress these operations into the token structure, allowing users to gain leveraged exposure in a manner closer to spot holding.

However, the fact that the product does not use a traditional liquidation mechanism does not mean that leverage risk has disappeared. If the price of Bitcoin moves against the market, the token may still amplify losses; in volatile markets, volatility losses may also occur.

Rebalancing range lowered

Hylo team member Shoom previously stated that xSOL and subsequent xAsset products will adopt a new rebalancing range, with leverage adjusted to 2.54x to 3.84x, down from the previous 3x to 4.3x. The agreement states that this move is to reduce volatility losses across the entire product line.

V2 Extended Multi-Asset Product

Prior to the launch of xBTC, Hylo announced its Hylo V2 plan on June 17th. This is the largest expansion of the protocol to date, with the core being a framework called xAsset Engine, designed to support leveraged tokens across markets.

• xCrypto: Covers crypto assets such as SOL and BTC
• xEquities: Covering tokenized stocks and indices
• xCommodities and xYield: Covering commodities and income-generating assets

Hylo also mentioned that it may launch stock-based products linked to TSLA, MSTR, SPY, and NDAQ in the future.

Collateral structure adjusted in sync

Hylo V2 will also replace the Stability Pool with the Earn Pool and introduce a multi-asset collateralized structure. The protocol plans to rely more on arbitrageurs and liquidity providers to achieve market rebalancing.

As designed, when the value of collateral falls and leverage increases, the system can sell assets for USDC; when leverage decreases, the system can use available USDC to buy back more collateral.

Hylo also plans to expand the backing assets of hyUSD from Solana liquidity-staking tokens to more categories, including Bitcoin, real-world assets, yield instruments, and USDC. The protocol is also exploring allocating excess liquidity to tokenized US Treasury products.