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Pioneering BTC DeFi: Merlin Chain’s PoS Mechanism and DeFi Integrations to Offer Unprecedented Yields for Bitcoiners

Michael Abadha Blockchain market writer
    Summary:
  • Merlin Chain has seen over $13 billion worth of Bitcoin bridged to and from its network in the last 45 days.

Merlin Chain, a Layer2 blockchain built for Bitcoin, is on a mission to bring long-awaited opportunities for yield to holders of the world’s most valuable cryptocurrency. 

The network’s Proof-of-Stake (PoS) consensus mechanism, combined with its suite of innovative decentralized finance (DeFi) integrations, is designed to furnish bitcoiners with opportunities to earn staking yields and access various DeFi services, finally putting BTC on par with blockchains like Ethereum.

For many years, Ethereum investors have enjoyed abundant yield-generating avenues like staking rewards, liquidity mining, and yield farming. However, simply holding bitcoin has not provided the same inherent incentives or income beyond the prospect of a gradual rise in the asset’s value. The team behind Merlin Chain is determined to change that.

“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,” said Merlin Chain Founder 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!”

Users seeking to take advantage of Merlin Chain to earn yield on their bitcoin must first bridge their BTC to the network using the Merlin Bridge, thereafter locking it on Layer1 and receiving gas BTC which can be staked into Merlin’s PoS mechanism. This process generates M-BTC, a wrapped bitcoin asset that earns staking rewards akin to stETH.

From there, the opportunities expand dramatically. Bitcoiners can:

  • Stake M-BTC into DeFi platforms like Solv Protocol to earn SolvBTC for accessing DeFi services
  • Supply liquidity and earn yields from leading DeFi protocols integrated with Merlin
  • Explore lending, borrowing, derivatives and other DeFi primitives with BTC capital
  • Bridge SolvBTC assets out to Bitcoin Layer2 networks like Linea to earn rewards

“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.”

Merlin Chain has seen over $13 billion worth of bitcoin bridged to and from its network in the last 45 days, while over $700 million worth of BTC has been distributed from Merlin out to Layer2 networks offering complementary rewards. The platform has also collaborated with many leading crypto custodians and institutions to bolster the security of its PoS mechanism, among them Fireblocks, Asia’s largest custodian Cobo, Ceffu, and Bitmain subsidiary Antalpha.

In total, Merlin Chain is working with over ten major institutions to scale participation and decentralize the network’s validator set. These efforts are part of the platform’s commitment to providing a transparent and secure blockchain environment that all users can enjoy.

About Merlin Chain

Merlin Chain is a Bitcoin Layer2 that integrates ZK-Rollup network, decentralized oracle network, and on-chain BTC fraud proof modules. Merlin Chain is committed to empowering Bitcoin’s native assets, protocols, and products on Layer1 through its Layer2 network, to Make Bitcoin Fun Again. Merlin Chain is a subsidiary product line of Bitmap Tech, a premier OG team boasting an overall market cap exceeding $500 million. The BRC-420 “Blue Box” collection under Bitmap Tech has become one of the hottest assets on Ordinals.To learn more, please visit their website.

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