The following is the full text of the speech, compiled based on the on-site recording.
Before 2023, Bitcoin was seen as digital gold used to store value, and no one was creating new concepts and applications around it. But after the Ordinals craze in mid-2023, more and more people began to create NFT-related content on the Bitcoin network, issuing assets such as BRC-20, BRC-420, and ORC-20, and then Atomicals and Runes also came into everyone's view. People gradually discovered that there were many things that could be done on the Bitcoin network, and more and more voices were heard, and discussions began on the expansion and re-staking of the Bitcoin network.
Subsequently, IDO, fair launch and other activities brought Bitcoin assets to Layer2. Merlin started preparing for Layer2-related matters in February this year, and heard many people saying that Bitcoin Layer2 is not practical, a scam, etc. But in fact, there are many Bitcoin Layer2s now, and there are also many supporters and builders in our industry, who are all using EVM and similar Bridge technologies. My point is that users have a strong demand for Bitcoin Layer2, and they hope to trade Bitcoin ecosystem assets faster and at a lower cost. Merlin wants to bring new possibilities to the entire ecosystem and empower Layer1 assets, that is, if you hold Runes, BRC-20, NFT and other assets on Layer1, what Merlin wants to do is to enable these assets to play a unique value in DeFi, GameFi, SocialFi and other fields.
Merlin’s Phantom Token Swap
We have brought many new ideas to the entire Bitcoin ecosystem. Merlin’s Phantom will be officially launched this month, and we will be able to freely exchange various assets such as NFTs and tokens, Runes and BRC-20. We will define various permissionless asset swaps through standardized contracts. For example, you can define a standard for exchanging NFTs for tokens, and then you can freely stake this token to become an LP to gain income. I can also exchange 10,000 MERLs for NFTs and hold them. Of course, these assets can also be exchanged back at any time. Therefore, I believe that although assets are born in Layer1, Layer2 is where these assets can be freely traded, exchanged, and so on. In fact, Layer2 has unlimited possibilities.
Merlin Yields: Introducing low-risk yield on Bitcoin on a holding basis
This chart shows the data of Merlin BTC Bridge. In the past month, a total of 163,400 Bitcoins have been transferred in and out of Merlin, which is equivalent to 10.167 billion USD. Looking at the Bitcoin transaction records of all cross-chain bridges and exchanges such as OKX and Binance, I don’t think any platform can exceed this number. Our transaction volume exceeds 10 million times, with a total number of users in the millions. At the same time, our cross-chain bridge can run smoothly without any errors during the transfer process. This is the fundamental guarantee for us to introduce Bitcoin into the EVM ecosystem.
Now, if you hold one Bitcoin in Layer1 or Binance, then at the end of this year, you will still have only one Bitcoin in your address. But if you hold one Merlin Bitcoin, what will be your balance at the end of the year? I mean, unless the Bridge is no longer functioning properly or there are other security issues, the BTC in your hands will be more than 1 because of the added value of the Merlin network.
First, for staking, we have already cooperated with many projects and will also open our PoS system. Therefore, if you hold a Merlin BTC and participate in staking, after the lock-up period ends, not only will the staked Bitcoin receive additional income, you will also receive additional network incentives and token airdrops from all cooperative projects. For Bitcoin stakers of Merlin’s Seal, they received the MERL airdrop at the highest APY of 120%.
Secondly, if you stake Merlin Bitcoin on projects such as StakeStone or Solv, you will undoubtedly receive tokens from these projects, and you will also be able to stake again on Babylon to get additional staking points and project tokens. In addition, you will also receive funding agency income from other agencies such as Antalpha, that is, 50% BTC APY from CEXs such as Binance.
Finally, there are many application scenarios for SolvBTC exchanged by staking Merlin BTC on Solv Protocol. We have cooperated with 10 Ethereum Layer2s and will announce cooperation with Linea, ZKLink, Arbitrum and other networks in the near future. You can also get re-staking income by introducing SolvBTC to other Layer2 networks. Since other ecosystems urgently need Bitcoin ecosystem users and transaction volume, but they have no choice in obtaining liquidity, cooperation with Ethereum Layer2 is a natural choice for the ecosystem.
I think all the above benefits are very important for Bitcoin. Bitcoin should not be just for holding. What Merlin is doing now is to introduce low-risk returns to Bitcoin on the basis of holding. In short, I think all the innovations that have taken place on Bitcoin Layer1 and Layer2 are very important. I am also very happy to see that there are so many builders in the ecosystem working with us. We are all fellow travelers who want to introduce these fun things into the Bitcoin ecosystem.
