**Core Foundation Launches Liquid Staking Token on Bitcoin L2 Network**
The Core Foundation has announced the launch of LstBTC, a liquid staking token backed by BTC on the Bitcoin-backed Layer 2 "Core" network. This ERC-20 token is pegged 1:1 with BTC and accrues daily rewards for holders, paid out in CORE tokens, the native utility and governance token of the Core network.
Rich Rines, an initial contributor to Core DAO, stated that LstBTC will be pivotal in kickstarting Core’s ecosystem by attracting new builders to launch their own liquid staking tokens (LSTs) on Core. This development is seen as a significant step forward for Bitcoin DeFi.
Core is an EVM-compatible Bitcoin sidechain that employs a unique consensus mechanism called "Satoshi Plus," combining merge mining and delegated proof of stake. This allows Core to inherit Bitcoin's security while offering enhanced functionality.
The introduction of LstBTC enables native Bitcoin staking, allowing BTC holders to earn consistent yields from multiple L2 blockchains. Unlike traditional staking, liquid staking offers the flexibility to move and trade BTC while still earning passive income.
While LstBTC is backed by BTC held in a multi-signature wallet on Bitcoin L1, Core DAO assures that rigorous security audits are conducted to protect users' assets. This initiative marks a promising expansion of Bitcoin's DeFi ecosystem.