- Merlin Chain offers Bitcoin holders yield opportunities through PoS and DeFi integrations.
- Bridging BTC to Merlin Chain unlocks staking rewards and DeFi services similar to Ethereum.
Holders of the most valuable cryptocurrency in the world should have substantial return prospects thanks to Merlin Chain, a Layer 2 blockchain designed especially for Bitcoin.
Merlin Chain integrates a proof-of-stake (PoS) consensus mechanism and cutting-edge decentralized finance (DeFi) solutions to give bitcoiners the chance to use various DeFi services and receive staking returns, bringing BTC in line with blockchains like Ethereum.
The Need for Yield in Bitcoin
Ethereum investors have always had a wealth of yield-generating options, including yield farming, liquidity mining, and staking rewards.
But just owning Bitcoin has not provided the same intrinsic benefits; instead, owners have to depend on the asset’s value gradually increasing.
This situation will be changed, and the Merlin Chain team is dedicated to it. Merlin Chain founder Jeff stressed the importance of this advancement.
“Everyone knows bitcoin has been one of the best-performing assets over the past ten years, hilariously detonating the cynical predictions of many anti-crypto critics, but holders have missed out on yields that other ecosystems provide,” he said.
We are therefore happy to at last provide BTC investors and hodlers with real incentives to earn and engage in the fascinating DeFi ecosystem in addition to hodlering!
How Merlin Chain Works
Merlin Chain requires users to first utilize the Merlin Bridge to connect their Bitcoin to the network. BTC can be staked into Merlin’s PoS mechanism by locking it on Layer 1 and receiving gas BTC.
This creates M-BTC, a wrapped Bitcoin asset that pays out staking rewards analogous to stETH.
With M-BTC, users can investigate a range of ways to generate income. They can stake M-BTC into DeFi platforms like Solv Protocol to earn SolvBTC for using DeFi services and look into lending, borrowing, derivatives, and other DeFi primitives using BTC capital.
This is in addition to providing liquidity to earn yields from top DeFi protocols connected with Merlin. Users can also earn extra benefits by bridging SolvBTC assets out to Bitcoin Layer2 networks like Linea.
“The use cases we have unlocked effectively mimic those of Ethereum’s mature DeFi ecosystem,” Jeff said.
They only recently gained access to what may be the most fervent cryptocurrency user base, and the security and scarcity of the Bitcoin network serve as their driving forces.
Achievements and Collaborations
With over $13 billion worth of Bitcoin transferred to and from its network in the last 45 days and over $700 million worth of BTC delivered to Layer 2 networks, giving supplementary benefits, Merlin Chain has already seen significant traction.
To improve the security of its PoS mechanism, the platform has teamed with top crypto custodians and organizations, such as Fireblocks, Asia’s biggest custodian Cobo, Ceffu, and Bitmain subsidiary Antalpha.
Merlin Chain works with more than ten large universities to increase participation and disperse the validator set of the network. These actions show how committed the platform is to giving every user a safe and transparent blockchain environment.