Merlin Chain transforms Bitcoin earnings with DeFi prospects
Merlin Chain, a Layer-2 blockchain platform, has revealed plans to introduce fresh yield opportunities for Bitcoin (BTC) traders, as per details shared with Finbold on June 12. By utilizing its Proof-of-Stake (PoS) consensus mechanisms and a range of innovative decentralized finance (DeFi) solutions, Merlin Chain is aiming to offer Bitcoin enthusiasts the chance to earn staking rewards and access various DeFi services.
While Ethereum (ETH) investors have long enjoyed different ways to generate yields such as staking rewards, liquidity mining, and yield farming, Bitcoin holders have not experienced similar benefits beyond the asset’s value appreciation. Merlin Chain’s Founder Jeff noted the strong market position of BTC while pointing out the lack of yield opportunities for its holders, stating, “Bitcoin has been a top-performing asset for years, defying the skeptics, but its holders have missed out on the yield opportunities available in other ecosystems. We are excited to finally provide BTC investors with tangible incentives to not just hold, but also earn and participate in the dynamic DeFi space!”
To take advantage of Merlin Chain’s yield offerings, users will need to bridge their BTC to the platform using the Merlin Bridge. This process involves locking BTC on Layer1 and receiving gas BTC, which can be staked into Merlin’s PoS mechanism to generate M-BTC, a wrapped bitcoin asset that earns staking rewards similar to stETH. By staking M-BTC on DeFi platforms like Solv Protocol, Bitcoin holders can earn SolvBTC and access a variety of DeFi services. They can also provide liquidity to earn yields from Merlin-integrated protocols and explore DeFi activities such as lending, borrowing, and engaging in derivatives with BTC. Additionally, they can bridge SolvBTC assets to Bitcoin Layer2 networks like Linea for additional rewards.
Merlin Chain has already bridged over $13 billion worth of bitcoin in the past month and distributed over $700 million worth of BTC to Layer2 networks. The platform has formed partnerships with leading crypto custodians like Fireblocks, Cobo, Ceffu, and Antalpha, and collaborates with over ten major institutions to enhance participation and decentralize the network’s validator set. This marks a new chapter for Bitcoin and Merlin Chain, offering BTC holders the opportunity to engage in DeFi activities and earn rewards in a dynamic and innovative ecosystem.