Merlin Chain has announced that Bitcoin holders can now engage in staking and reap the benefits of high-yield DeFi protocols. This popular protocol has witnessed a movement of over $13 billion worth of Bitcoin in and out of its network in the past 45 days. Merlin Chain is designed as a Layer 2 (L2) solution for Bitcoin, addressing the issue of limited yield options for Bitcoin holders on other chains.
Merlin Chain Transfers $700M BTC to Layer 2 for Yield Incentives
During this time frame, more than $700 million worth of BTC has been transferred from Merlin to Layer 2 networks for additional incentives. The goal of Merlin Chain is to offer Bitcoin holders opportunities to earn yields through staking or access various DeFi services.
With a Proof-of-Stake (PoS) consensus mechanism, coupled with advanced DeFi integrations, the network aims to provide Bitcoin holders with similar benefits enjoyed by Ethereum investors, including staking rewards, liquidity mining, and yield farming. Users of Merlin Chain must bridge their BTC to the network in order to earn yield on their BTC using the Merlin Bridge. This process locks the BTC of Layer 1 and generates gas BTC, which can be staked to Merlin’s PoS mechanism.
By staking with M-BTC, Bitcoin holders can receive SolvBTC, enabling them to utilize DeFi services through platforms like Solv Protocol. They also have the opportunity to provide liquidity and earn yields across various DeFi protocols integrated with Merlin, explore lending, borrowing, derivatives, and other DeFi primitives using BTC capital.
Merlin Chain Enhances Security with Leading Crypto Custodian Partnerships
As part of its security measures through the PoS mechanism, Merlin Chain has partnered with some of the top crypto custodians and institutions. Fireblocks, Cobo (Asia’s largest custodian), Ceffu, and Bitmain’s investment arm Antalpha are among the partner institutions involved in the project. Thus far, Merlin Chain has collaborated with over ten prominent industry players to expand participation.
Merlin Chain
Founder Jeff believes that Bitcoin has been one of the top-performing assets in the past decade. However, BTC holders have been missing out on opportunities for yields. Now, they are excited to finally provide incentives for BTC holders to earn and engage in the dynamic DeFi ecosystem.
