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This brings decentralized finance (DeFi) capabilities to Bitcoin, allowing users to stake, lend, and provide liquidity for additional profits.
Native Bitcoin Layer 2 blockchain Merlin Chain has announced support for Bitcoin, allowing holders of the world's most valuable cryptocurrency to enjoy DeFi features. The platform aims to unlock the full potential of BTC, allowing holders to hold, borrow, lend, provide liquidity, and connect their assets in a seamless and affordable way.
Merlin Chain integrates the ZK-Rollup network, decentralized oracle network, and on-chain BTC fraud prevention module to give Bitcoin users the opportunity to enjoy DeFi while maintaining the security proficiency provided by Bitcoin Layer 1 chains. provide. This opens the opportunity for Bitcoin users who had to wait years to enjoy DeFi features like other blockchains, primarily Ethereum.
Amid the constant battle between the two largest cryptocurrencies, with Bitcoin users claiming the superior security the chain offers and Ether leading the DeFi sector, Merlin Chain combines the best of both worlds. do. Since launch, Bitcoin users will be able to enjoy a wealth of revenue-generating methods that were previously unavailable, including staking rewards, liquidity mining, and yield farming.
Commenting on his support for BTC assets, Merlin Chain founder Jeff Yin praised the steps BTC has made over the past 15 years, but lamented the missed opportunities for investors compared to other blockchain ecosystems.
“Everyone knows that Bitcoin has been one of the best-performing assets of the past decade, hilariously blowing up the cynical predictions of many anti-crypto critics, but holders have missed out on the returns offered by other ecosystems,” Yin said. “He said. “Therefore, we are excited to finally give BTC investors and holders a concrete incentive to not only HODL, but also acquire and participate in the exciting DeFi ecosystem!”
Integrating DeFi into the oldest cryptocurrency ecosystem
Merlin Chain allows BTC holders to earn profits simply by connecting their assets to the network using the Merlin bridge (currently in beta). Once connected, your BTC assets are locked at layer 1 and you receive gas BTC that can be staked on Merlin’s PoS mechanism. This process creates M-BTC, a wrapped Bitcoin asset that earns staking rewards similar to stETH.
M-BTC assets can be widely used across the DeFi ecosystem. M-BTC holders can stake their assets and earn returns on DeFi platforms, provide liquidity to major DeFi apps integrated with Merlin Chain, explore lending and borrowing using M-BTC, and transfer SolvBTC assets to Linea You can earn money by connecting to Bitcoin Layer2 networks such as . compensation.
“The use cases we unlock effectively mimic those of Ethereum’s mature DeFi ecosystem,” Yin said. “Now they will tap into perhaps the most passionate cryptocurrency user base in existence, thanks to the security and scarcity of the Bitcoin network.”
Unlocking the DeFi Ecosystem for Bitcoin Holders
Over the past month or so, the Merlin Chain has traded over $13 billion of BTC through its bridge, with over $700 million of BTC distributed to the Layer2 network, which offers free rewards on Merlin. Additionally, the platform boasts over $2.7 billion in total value locked (TVL) across the DeFi ecosystem.
Blockchain also has strategic partnerships with some of the leading cryptocurrency managers and platforms, including FireBlocks, Cobo, Polygon, Lumoz, and Bitmain subsidiary Antalpha. Merlin Chain also has an extensive list of investors, including ViaBTC, Kucoin Exchange, Foresight Ventures, OKX Ventures, and more.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
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