Merlin Chain, a Layer-2 blockchain, has introduced it’s engaged on bringing new yield alternatives for Bitcoin (BTC) merchants, in keeping with the knowledge shared with Finbold on June 12.
With its Proof-of-Stake (PoS) consensus mechanisms and a collection of progressive decentralized finance (DeFi) options, Merlin Chain goals to supply bitcoiners with the possibility to earn staking yields and entry a spread of DeFi providers.
Enhanced yield for Bitcoin holders
For years, Ethereum (ETH) buyers have loved numerous yield-generating avenues akin to staking rewards, liquidity mining, and yield farming.
In distinction, holding BTC has not supplied related advantages, other than the asset’s gradual appreciation.
Merlin Chain Founder Jeff has emphasised the sturdy market place of BTC whereas highlighting the stunning lack of yields its holders get pleasure from:
“Everybody is aware of bitcoin has been one of many best-performing property over the previous decade, hilariously detonating the cynical predictions of many anti-crypto critics, however holders have missed out on yields that different ecosystems present. We’re subsequently delighted to lastly grant BTC buyers and hodlers concrete incentives to not simply HODL, however earn and take part within the thrilling DeFi ecosystem!”
To leverage Merlin Chain’s yield alternatives, customers will bridge their BTC to the community utilizing the Merlin Bridge.
That entails locking BTC on Layer1 and receiving gasoline BTC, which may then be staked into Merlin’s PoS mechanism to generate M-BTC, a wrapped bitcoin asset that earns staking rewards just like stETH.
Bitcoin holders can stake M-BTC on DeFi platforms like Solv Protocol to earn SolvBTC and entry numerous DeFi providers.
Furthermore, they’ll provide liquidity to earn yields from Merlin-integrated protocols and discover DeFi primitives akin to lending, borrowing, and interesting in derivatives and different DeFi actions with BTC.
Moreover, they’ll bridge SolvBTC property to Bitcoin Layer2 networks like Linea to earn additional rewards.
A brand new chapter for Bitcoin and Merlin Chain
Merlin Chain has already bridged over $13 billion price of bitcoin within the final month and a half and distributed over $700 million price of BTC to Layer2 networks.
The platform has additionally partnered with main crypto custodians, akin to Fireblocks, Cobo, Ceffu, and Antalpha.
In complete, Merlin Chain collaborates with over ten main establishments to scale participation and decentralize the community’s validator set.
