Merlin Chain has announced that Bitcoin holders can now engage in staking and enjoy lucrative 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, designed as a Bitcoin Layer 2 (L2) solution, addresses the issue of limited yield options for Bitcoin holders on other chains.
Merlin Chain Moves $700M BTC to Layer 2 for Yield Incentives
During this time frame, more than $700 million worth of BTC was 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.
Fueled by a Proof-of-Stake (PoS) consensus mechanism and innovative DeFi integrations, the network aims to provide Bitcoin holders with the same benefits enjoyed by Ethereum investors, such as staking rewards, liquidity mining, and yield farming. To earn yield on their BTC, users must bridge their BTC to the network using the Merlin Bridge, which locks the BTC of Layer 1 and generates gas BTC that can be staked in Merlin’s PoS mechanism.
By staking with M-BTC, Bitcoin holders can acquire SolvBTC tokens to access DeFi services on platforms like Solv Protocol. They also have the opportunity to provide liquidity, earn yields through DeFi protocols in collaboration with Merlin, explore lending, borrowing, derivatives, and other DeFi primitives using their BTC capital.
Merlin Chain Boosts Security with Leading Crypto Custodian Partnerships
As part of its security measures through the PoS mechanism, Merlin Chain has partnered with top crypto custodians and institutions. Fireblocks, Asia’s largest custodian Cobo, Ceffu, and Bitmain investment Antalpha are among the partner institutions involved in the project. To enhance participation, Merlin Chain has collaborated with over ten major industry players.
Merlin Chain
Founder Jeff believes that Bitcoin has been one of the best-performing assets over the past decade. However, BTC holders have been missing out on yield opportunities. They are excited to finally offer incentives for BTC holders to earn and engage in the dynamic DeFi ecosystem.