DeFi
Merlin Chain Revolutionizes Bitcoin Yields with DeFi Opportunities
Merlin channel, one Layer 2 blockchainannounced that it is working to bring new yield opportunities for Bitcoin (BTC) traders, according to information shared with Finbold on June 12.
With its Proof-of-Stake (Point of sale) consensus mechanisms and a suite of innovative decentralized financing (Challenge), Merlin Chain aims to offer bitcoiners the opportunity to earn staking yields and access a range of DeFi services.
Improved yield for Bitcoin holders
For years, Ethereum (ETH) investors benefited from various yield generation opportunities such as staking rewards, liquidity miningand yield farming.
On the other hand, holding BTC has not offered the same benefits, aside from the gradual appreciation of the asset.
Merlin Chain founder Jeff highlighted BTC’s strong position in the market while highlighting the surprising lack of returns its holders enjoy:
“Everyone knows that Bitcoin has been one of the best performing assets of the last decade, hilariously blowing away the cynical predictions of many anti-crypto critics, but holders have missed out on the returns provided by other ecosystems . We are therefore excited to finally grant BTC investors and hodlers concrete incentives not only to HODL, but also to earn and participate in the exciting DeFi ecosystem!
To take advantage of Merlin Chain’s yield opportunities, users will connect their BTC to the network using the Merlin Bridge.
This involves locking BTC on layer 1 and receiving BTC gas, which can then be staked into Merlin’s PoS mechanism to generate M-BTC, a wrapped Bitcoin asset that earns staking rewards similar to stETH.
Bitcoin holders can stake M-BTC on DeFi platforms like Solv Protocol to earn SolvBTC and access various DeFi services.
Additionally, they can provide liquidity to earn returns through Merlin’s built-in protocols and explore DeFi primitives such as lending, borrowing, and participating in derivatives and other DeFi activities with BTC.
Additionally, they can link SolvBTC assets to Bitcoin Layer2 networks like Linea to earn additional rewards.
A new chapter for Bitcoin and Merlin Chain
Merlin Chain has already filled over $13 billion worth of bitcoin in the last month and a half and distributed over $700 million worth of BTC to Layer2 networks.
The platform has also partnered with leading cryptocurrency custodians, such as Fireblocks, Cobo, Ceffu and Antalpha.
In total, Merlin Chain is collaborating with more than ten major institutions to increase participation and decentralize all validators on the network.