Merlin Chain has stated that Bitcoin holders can now stake and benefit from high-yield and income-generating DeFi protocols. This trending protocol has seen over $13 billion worth of Bitcoin either brought into its network or out from it in the last 45 days. Merlin Chain itself is developed as a Bitcoin Layer 2 (L2) solution. Moreover, it solves the problem of limited yield options for Bitcoin holders in other chains.
Merlin Chain Transfers $700M BTC to Layer 2 for Yield Incentives
During this period, more than 700 million USD worth of BTC was drained from Merlin to Layer 2 networks for additional incentives. Merlin Chain intends to provide Bitcoin holders with yield opportunities so they will be incentivized to either stake and earn staking yields or enjoy various DeFi services.
Powered by a Proof-of-Stake (PoS) consensus mechanism, alongside its cutting edge DeFi integrations, the network seeks to provide Bitcoin holders with the same benefits Ethereum investors have enjoyed such as staking rewards, liquidity mining, and yield farming. With Merlin Chain users must bridge their BTC to the network in order to earn yield on their BTC using the Merlin Bridge. This freezes the BTC of Layer 1 and produces gas BTC, which can be staked to Merlin’s PoS mechanism.
By staking with M-BTC, Bitcoiners can obtain SolvBTC that allows them to access DeFi services through platforms like Solv Protocol. They also give the potential to offer liquidity and gain yields throughout DeFi protocols combined with Merlin, investigate lending, borrowing, derivatives, and various other DeFi primitives along with BTC capital.
Merlin Chain Enhances Security with Top Crypto Custodian Partnerships
As part of Merlin Chain’s security measures via its PoS mechanism, the platform has teamed up with several of the top crypto custodians and institutions. Fireblocks, Asia’s largest custodian Cobo, Ceffu, and Bitmain investment Antalpha are partner institutions part of the project. So far, Merlin Chain has partnered with more than ten industry big players to further enlarge participation.
Merlin Chain Founder Jeff considers that Bitcoin is one of the top-performing assets of the last decade. But so far, BTC holders have been missing out on yields. But now, they are thrilled to finally start offering incentives for BTC holders to earn and participate in the vibrant DeFi ecosystem.