DeFi
Merlin Chain unlocks DeFi potential for Bitcoin holders
Arman Shirinian
Merlin Chain Presents Innovative DeFi Opportunities, Bringing Yield Generation to Bitcoin Holders
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With the introduction of yield opportunities, Merlin Channel, a layer 2 blockchain created specifically for Bitcoin, has the potential to transform the environment for BTC holders. In order to level the playing field with blockchains like Ethereum, Merlin Chain intends to give bitcoiners access to a variety of DeFi and yield staking services through the use of a consensus mechanism of proof of stake (PoS) and a suite of various integrations.
Investors in Ethereum have long benefited from various ways to generate returns, including yield farming, liquidity mining, and staking rewards. On the other hand, aside from possible price growth, owning Bitcoin hasn’t really offered many benefits.
It is this dynamic that Merlin Chain aims to change. The disparity in the market was highlighted by Jeff, the creator of Merlin Chain: despite being one of the best performing assets of the last 10 years, Bitcoin holders missed the yield opportunities present in other ecosystems.
Merlin provides new opportunities for BTC investors to earn and interact with the DeFi ecosystem. In order to receive returns on their Bitcoin, users must first use the Merlin Bridge to link their Bitcoin to the Merlin Chain. In order to create M-BTC, a wrapped Bitcoin asset that generates staking rewards similar to Ethereum’s stETH, this process involves locking BTC to layer 1 and receiving BTC gas.
When users obtain M-BTC, a number of opportunities become available. Earning SolvBTC provides access to DeFi services by staking M-BTC on DeFi platforms such as the Solv protocol. It provides liquidity by integrating Merlin with major DeFi protocols to earn returns, uses BTC to lend derivatives and other DeFi operations, and links SolvBTC assets to layer 2 Bitcoin networks such as Linea to generate additional incentives.
In just 45 days, Merlin Chain has enabled over $13 billion in Bitcoin transactions through its network, with $700 million of this cryptocurrency distributed to layer 2 networks in exchange for additional benefits.
To improve the security of its proof-of-work mechanism, the platform has partnered with leading custodians and cryptocurrency organizations such as Fireblocks, Cobo, Ceffu, and Antalpha. Merlin Chain is working with over 10 major institutions to decentralize all network validators and increase participation.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.