This pioneers Bitcoin into the decentralized finance (DeFi) ecosystem, permitting bitcoiners the chance to earn yields and take part within the broader DeFi ecosystem.
Merlin Chain, a local Bitcoin Layer 2 blockchain, introduced the launch of its proof of stake (POS) mechanism and DeFi integrations to supply BTC holders unprecedented yield alternatives throughout the DeFi ecosystem. The platform pioneers BTC integration into the DeFi ecosystem, permitting BTC holders to earn staking rewards and entry profitable yield alternatives together with yield farming and lending/borrowing alternatives.
Merlin Chain’s POS mechanism and progressive DeFi integration are designed to supply BTC asset holders with entry to limitless DeFi alternatives, which opens up the way in which for Bitcoin to problem Ethereum within the DeFi house. Through the years, Ethereum (and different crypto holders) have loved the capabilities of DeFi via varied yield-generating avenues from staking rewards to liquidity mining, and yield farming, and Merlin Chain targets to convey related capabilities to BTC holders.
Merlin Chain Founder Jeff Yin believes the newest innovation brings BTC to stage phrases with Ethereum within the DeFi house, lastly giving them a possibility to earn yield.
“Everyone knows bitcoin has been one of the best-performing assets over the past decade, hilariously detonating the cynical predictions of many anti-crypto critics, but holders have missed out on yields that other ecosystems provide,” stated Jeff. “We are therefore delighted to finally grant BTC investors and hodlers concrete incentives to not just HODL, but earn and participate in the exciting DeFi ecosystem!”
To reap the benefits of DeFi yield alternatives as a BTC holder, customers should first bridge their BTC cash to the Merlin community by way of its Merlin bridge (nonetheless in beta). As soon as bridged, the BTC belongings will probably be locked on Bitcoin’s Layer 1 and exchanged for fuel BTC which could be staked into Merlin’s PoS mechanism. This course of generates M-BTC, a wrapped bitcoin asset that earns staking rewards akin to stETH.
The M-BTC tokens can now be used freely throughout Merlin-supported DeFi platforms. This enables customers to stake their “synthetic BTC” into DeFi platforms to earn rewards, provide liquidity and earn yields, discover lending/borrowing alternatives, and bridge SolvBTC belongings out to Bitcoin Layer2 networks like Linea to earn rewards. Extra capabilities are set to be added within the close to future, the workforce assertion confirms.
“The use cases we have unlocked effectively mimic those of Ethereum’s mature DeFi ecosystem,” added Jeff. “Only now, they are powered by the security and scarcity of the Bitcoin network, and tap into probably the most ardent crypto user base that exists.”
Since April this yr, Merlin Chain has witnessed large bridging requests with over $13 billion price of BTC bridged to and from its community. Moreover, the platform has distributed over $700 million price of BTC to different Layer 2 networks providing complimentary rewards. The platform has over $2.7 billion price of crypto belongings locked, supported by main crypto custodians together with Fireblocks, Asia’s largest custodian Cobo, Ceffu, and Bitmain subsidiary Antalpha.