Written by: 1912212.eth, Foresight News

If BTC is only passively held without earning any income, it would be too wasteful for the Crypto industry, which is constantly focusing on capital efficiency. Previously, Ethereum's second-layer Blast captured a large amount of capital inflows with ETH staking income, and jumped into the forefront of TVL, which was a great success. The second-layer network does not necessarily have to compete with well-known project parties in terms of hard technical strength or inventions. How does the new player Corn bring BTC into DeFi?

Recently, Corn completed a financing of US$6.7 million, led by Polychain Capital, with participation from Binance Labs, Framework Ventures, ABCDE, OKX Ventures, HTX Ventures and Relayer Capital.

What is Corn?

Corn is an Ethereum L2 network dedicated to building a DeFi center for Bitcoin. Among the many projects that tokenize BTC, wBTC, tBTC, etc. have emerged. wBTC has been questioned for its centralization, and tBTC, as a leader, has a total supply of more than 10,000.

At present, there are two main ways in the industry to explore the capital efficiency of BTC. One is to create a second-layer network of BTC by yourself, and the other is to introduce BTC into the ERC-20 track by packaging tokens on Ethereum, and finally participate in the DeFi ecosystem to obtain benefits.

Corn chose the latter. To facilitate BTC's entry into the DeFi world, Corn launched the tokenized Bitcoin BTCN. BTCN is a tokenized Bitcoin backed 1:1 by native Bitcoin. It does not rely on a single centralized custodian or bridge solution, but extends its minting rights to include multiple custodians, smart contracts, and various bridge protocols.

DeFi Bitcoin should not be generalized in the debate of centralization or decentralization, but should prioritize solvency and scale, so its BTCN takes a hybrid approach. In addition, Corn also uses BTCN as the network's gas fee and economic incentives.

What is the utility of CORN tokens?

Corn said it was inspired by Curve's veTokenomics (staking and locking tokens to obtain fees, and voting to select the token allocation share of the pool), and incentivized users and developers by issuing CORN, which can then be directed to various applications on the chain.

CORN stakers will have voting rights after switching to popCORN and will be able to participate in various governance votes within the community. For example, CORN stakers can decide what percentage of CORN issuance will be allocated to which applications, and users who interact with the applications favored by the stakers will receive these rewards.

In addition, CORN stakers can also benefit from Corn's native incentive market, where CORN stakers can directly accept quotes from applications.

Corn has no fixed income. The income percentage will mainly depend on the growth of the ecosystem and the number of protocol participants achieved through Corn's flywheel mechanism.

Currently, Corn’s official website shows that its early staking access will be open to eligible users, after which users will be able to deposit various assets to earn points, which will receive a portion of the CORN airdrop.