DeFi
Merlin Chain Pioneers Generate Revenue for Bitcoin Holders Across the DeFi Ecosystem
This brings Bitcoin into the decentralized finance (DeFi) ecosystem, allowing bitcoiners the opportunity to earn yields and participate in the broader DeFi ecosystem.
Merlin Channel, a native Bitcoin Layer 2 blockchain, announced the launch of its Proof of Stake (POS) mechanism and DeFi integrations to provide BTC holders with unprecedented yield opportunities in the DeFi ecosystem. The platform is pioneering the integration of BTC into the DeFi ecosystem, allowing BTC holders to earn staking rewards and access lucrative yield opportunities, including yield farming and trading opportunities. loan/borrowing.
Merlin Chain’s POS mechanism and innovative DeFi integration are designed to provide BTC asset holders with access to unlimited DeFi opportunities, paving the way for Bitcoin to challenge Ethereum in the DeFi space. Over the years, Ethereum (and other crypto holders) have benefited from DeFi’s capabilities through various yield-generating avenues, ranging from staking rewards to liquidity mining and yield farming, and Merlin Chain aims to offer similar capabilities to BTC holders.
Merlin Chain founder Jeff Yin believes the latest innovation brings BTC on par with Ethereum in the DeFi space, finally giving them the opportunity to earn yield.
“Everyone knows that Bitcoin has been one of the best performing assets of the last decade, hilariously blowing away the cynical predictions of many anti-crypto critics, but holders have missed out on the returns provided by other ecosystems “Jeff said. “We are therefore excited to finally grant BTC investors and hodlers concrete incentives not only to HODL, but also to earn and participate in the exciting DeFi ecosystem!
To take advantage of DeFi yield opportunities as a BTC holder, users must first link their BTC coins to the Merlin network via its Merlin Bridge (still in beta). Once bridged, BTC assets will be locked onto Bitcoin Layer 1 and exchanged for BTC gas which can be staked in Merlin’s PoS mechanism. This process generates M-BTC, a wrapped Bitcoin asset that earns staking rewards similar to stETH.
M-BTC tokens can now be used freely on DeFi platforms supported by Merlin. This allows users to stake their “synthetic BTC” on DeFi platforms to earn rewards, provide liquidity and earn yields, explore lending/borrowing opportunities, and link SolvBTC assets to Bitcoin Layer2 networks like Linea to earn rewards. More features are expected to be added in the near future, the team’s press release confirms.
“The use cases we’ve unlocked effectively mimic those in Ethereum’s mature DeFi ecosystem,” Jeff added. “Only now are they leveraging the security and scarcity of the Bitcoin network and tapping into arguably the most ardent crypto user base in existence.”
Since April this year, Merlin Chain has witnessed massive bridging requests, with over $13 billion worth of BTC linked to and from its network. Additionally, the platform has distributed over $700 million worth of BTC to other Layer 2 networks offering free rewards. The platform has over $2.7 billion in locked crypto assets, backed by leading crypto custodians including Fireblocks, Asia’s largest custodian, Cobo, Ceffu, and Bitmain subsidiary Antalpha.