The goal of Merlin Chain, a Layer 2 blockchain built for Bitcoin, is to provide holders of the most valuable cryptocurrency in the world with long-awaited yield potential.
With the help of the network’s suite of cutting-edge decentralized finance (DeFi) integrations and Proof-of-Stake (PoS) consensus mechanism, bitcoiners will be able to access a variety of DeFi services and earn staking yields, bringing BTC up to par with blockchains such as Ethereum.
Ethereum investors have had a plethora of opportunities to generate returns via activities such as yield farming, liquidity mining, and staking incentives for a long time. But owning bitcoin by itself hasn’t offered any additional income or intrinsic motivations beyond the possibility of a steady increase in the asset’s value. The Merlin Chain team is committed to making it happen.
Merlin Chain Founder Jeff stated:
“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. 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 who want to use Merlin Chain to earn yield on their bitcoin must first use the Merlin Bridge to bridge their bitcoin to the network. After that, they must lock their bitcoin on Layer 1 and get gas bitcoin, which can then be staked into Merlin’s proof of stake mechanism. M-BTC, a wrapped bitcoin asset that yields staking incentives similar to stETH, is produced by this approach.
The opportunities then significantly increase. Bitcoin users are able to:
- Earn SolvBTC by staking M-BTC on DeFi platforms such as Solv Protocol for accessing DeFi services.
- Provide liquidity and get returns from industry-leading DeFi protocols that are Merlin-integrated.
- Use Bitcoin capital for exploring borrowing, lending, derivatives, and other DeFi primitives.
- To earn rewards, connect SolvBTC assets to Layer 2 Bitcoin networks like Linea.
Jeff added:
“The use cases we have unlocked effectively mimic those of Ethereum’s mature DeFi ecosystem. 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.”
In the last 45 days, more than $13 billion worth of bitcoin has been bridged to and from the Merlin Chain network. Additionally, more than $700 million worth of bitcoin has been dispersed from Merlin to Layer 2 networks that provide complementary rewards. In order to strengthen the security of its PoS method, the platform has also partnered with a number of top cryptocurrency custodians and organizations, including Fireblocks, Cobo, the biggest custodian in Asia, Ceffu, and Bitmain subsidiary Antalpha.
In order to increase participation and decentralize the network’s validator set, Merlin Chain is collaborating with more than 10 significant institutions. These initiatives are a cornerstone of the platform’s dedication to provide a safe and transparent blockchain environment to all users.
