Merlin Chain, a Layer-2 blockchain, has introduced that it’s working to supply new return alternatives for Bitcoin (BTC) merchants, in response to info shared with Finbold on June 12.
With its Proof-of-Stake (PoS) consensus mechanisms and a spread of modern decentralized finance (DeFi) options, Merlin Chain goals to supply bitcoiners the possibility to earn staking returns and entry a spread of DeFi companies.
Improved returns for Bitcoin holders
For years, Ethereum (ETH) buyers have used quite a lot of methods to generate returns, comparable to reward staking, liquidity mining, and yield farming.
In distinction, holding BTC has not yielded any comparable advantages, other than the asset’s gradual improve in worth.
Merlin Chain founder Jeff has highlighted BTC’s sturdy market place whereas highlighting the shocking lack of returns loved by holders:
“Everybody is aware of that Bitcoin has been among the finest performing belongings over the previous decade, hilariously detonating the cynical predictions of many anti-crypto critics, however holders have missed out on the returns that different ecosystems provide. We’re due to this fact excited to lastly give BTC buyers and hodlers concrete incentives to not solely HODL, but in addition to generate profits and take part within the thrilling DeFi ecosystem!”
To benefit from Merlin Chain’s yield potential, customers will join their BTC to the community by way of the Merlin Bridge.
That entails locking BTC at Layer1 and receiving gasoline BTC, which may then be staked in Merlin’s PoS mechanism to generate M-BTC, a wrapped bitcoin asset that earns staking rewards just like stETH.
Bitcoin holders can stake M-BTC on DeFi platforms comparable to Solv Protocol to earn SolvBTC and entry numerous DeFi companies.
Moreover, they’ll present liquidity to earn returns from Merlin-integrated protocols and discover DeFi primitives comparable to borrowing, borrowing, and taking part in derivatives and different DeFi actions with BTC.
Moreover, they’ll bridge SolvBTC belongings to Bitcoin Layer2 networks like Linea to earn further rewards.
A brand new chapter for Bitcoin and Merlin Chain
Merlin Chain has already bridged greater than $13 billion value of Bitcoin and distributed greater than $700 million value of BTC to Layer2 networks up to now month and a half.
The platform additionally companions with main crypto custodians comparable to Fireblocks, Cobo, Ceffu and Antalpha.
In complete, Merlin Chain has partnered with greater than ten main establishments to scale participation and decentralize the community’s validator set.