Merlin Chain, a Layer 2 blockchain designed specifically for Bitcoin, aims to offer holders of the world’s most valuable cryptocurrency the opportunity for long-awaited yield potential.
Through a range of cutting-edge decentralized finance (DeFi) integrations and a Proof-of-Stake (PoS) consensus mechanism, bitcoiners will have access to various DeFi services and the ability to earn staking rewards, bringing Bitcoin on par with other blockchains like Ethereum.
While Ethereum investors have long enjoyed opportunities for generating returns through activities such as yield farming, liquidity mining, and staking incentives, owning Bitcoin alone has not provided additional income or incentives beyond the potential for asset value appreciation. The Merlin Chain team is dedicated to changing that.
Founder of Merlin Chain, Jeff, explained that users interested in earning yield on their Bitcoin through the platform must first bridge their Bitcoin to the network using the Merlin Bridge. They can then lock their Bitcoin on Layer 1 and receive gas Bitcoin, which can be staked in Merlin’s proof of stake mechanism. This process produces M-BTC, a wrapped Bitcoin asset that offers staking rewards similar to stETH.
With these opportunities, Bitcoin users can:
– Earn SolvBTC by staking M-BTC on DeFi platforms like Solv Protocol for DeFi service access.
– Provide liquidity and earn returns from top DeFi protocols integrated with Merlin.
– Utilize Bitcoin capital for activities such as borrowing, lending, derivatives, and other DeFi primitives.
To earn rewards, users can connect SolvBTC assets to Layer 2 Bitcoin networks like Linea.
Jeff also revealed that in the past 45 days, over $13 billion worth of Bitcoin has been bridged to and from the Merlin Chain network. Additionally, more than $700 million worth of Bitcoin has been distributed from Merlin to Layer 2 networks offering additional rewards. To enhance the security of its PoS mechanism, the platform has partnered with leading cryptocurrency custodians and organizations, including Fireblocks, Cobo, Ceffu, and Bitmain subsidiary Antalpha.
In an effort to boost participation and decentralize the network’s validator set, Merlin Chain is collaborating with over 10 major institutions. These efforts underscore the platform’s commitment to providing a secure and transparent blockchain environment for all users.
