Merlin Chain presents a Proof-of-Stake (PoS) consensus mechanism fused with a suite of innovative DeFi integrations.
Layer 2 blockchain Merlin Chain has announced that Bitcoin (BTC) holders can now earn staking rewards and access lucrative Decentralized Finance (DeFi) opportunities. Notably, Merlin Chain was designed from inception as a Bitcoin L2 solution and it finds its use on the assumption that Bitcoin users are missing out on yields on other chains.
Bitcoin Put at Par with Ethereum
Per its design, Merlin Chain is committed to providing yield to holders of the world’s most valuable cryptocurrency by presenting them with unique opportunities. More than $700 million worth of BTC has been distributed from Merlin Chain to Layer 2 networks offering complementary rewards. Within the past 45 days, the trending protocol has seen over $13 billion worth of BTC bridged to and from its network.
Merlin Chain presents a Proof-of-Stake (PoS) consensus mechanism fused with a suite of innovative DeFi integrations. In the long run, its aim is to set Bitcoin on the same pedestal as other blockchains like Ethereum where staking yield is a normal offering.
Over time, Ethereum investors have bagged enormous yield-generating opportunities like staking rewards, liquidity mining, and yield farming. Bitcoin did not afford holders the same privilege as it failed to provide incentives or income that goes beyond the prospect of a gradual rise in the asset’s value. However, the Merlin Chain team took it upon themselves to change this narrative.
“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,” Merlin Chain Founder Jeff said in a statement shared with Coinspeaker in his view about Bitcoin’s capacity.
“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!” Jeff added.
Merlin Chain Delivers Benefits And Perks to Bitcoin Investors
Bitcoiners on Merlin Chain stand to enjoy a long list of services and perks. These users can stake M-BTC, a wrapped Bitcoin asset that earns staking rewards akin to stETH. Apart from the resemblance that this would bear with stETH, Jeff lauded the security and scarcity of the Bitcoin network as an added advantage to this latest development.
M-BTC staking would be into DeFi platforms like Solv Protocol where users could earn SolvBTC for accessing DeFi services. These users can also supply liquidity and earn yields from leading DeFi protocols integrated with Merlin Chain.
Some other services that they could enjoy are exploring lending, borrowing, derivatives and other DeFi primitives with BTC capital. Additionally, they can bridge SolvBTC assets out to Bitcoin Layer2 networks like Linea to earn rewards.
Investors who are interested in enjoying all these services that Merlin Chain offers must first bridge their BTC holding to the network using the Merlin Bridge. Next, they are required to lock it on Layer-1 and receive gas BTC. Noteworthy, the gas BTC can be staked into Merlin’s PoS mechanism, a process that ultimately generates M-BTC.
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