Merlin Chain Revolutionizes Bitcoin Holding with Staking Rewards and DeFi Opportunities

Merlin Chain, a Layer 2 blockchain platform, has recently introduced a new feature that allows Bitcoin (BTC) holders to earn staking rewards and access various Decentralized Finance (DeFi) opportunities. This move aims to address the issue of Bitcoin users missing out on potential yields available on other blockchain networks.

The platform, which was specifically designed as a Bitcoin L2 solution, has already distributed over $700 million worth of BTC to Layer 2 networks offering complementary rewards. In the past 45 days alone, Merlin Chain has facilitated the bridging of over $13 billion worth of BTC to and from its network.

Merlin Chain operates on a Proof-of-Stake (PoS) consensus mechanism and offers a range of innovative DeFi integrations. The ultimate goal of the platform is to elevate Bitcoin to the same level as other blockchains like Ethereum, where staking yield and other DeFi opportunities are common.

Jeff, the Founder of Merlin Chain, emphasized the importance of providing concrete incentives for BTC investors and hodlers to actively participate in the DeFi ecosystem. He highlighted the success of Bitcoin as an asset over the past decade but noted that holders have missed out on the yield-generating opportunities available in other ecosystems.

Bitcoiners on Merlin Chain can stake M-BTC, a wrapped Bitcoin asset that earns staking rewards similar to stETH. They can also access various DeFi services, including supplying liquidity, exploring lending and borrowing options, and participating in yield farming activities. Additionally, users can bridge their assets to Bitcoin Layer 2 networks like Linea to earn rewards.

To access these services, investors must first bridge their BTC holdings to the Merlin Chain network using the Merlin Bridge. They are then required to lock their assets on Layer-1 and receive gas BTC, which can be staked into Merlin’s PoS mechanism to generate M-BTC.

Overall, the introduction of staking rewards for Bitcoin holders on Merlin Chain represents a significant step towards providing more opportunities for BTC investors to actively engage in the DeFi space and earn rewards on their holdings. This move could potentially attract more users to the platform and further enhance the utility of Bitcoin in the broader blockchain ecosystem.