Merlin Chain is introducing exciting opportunities for Bitcoin holders in the realm of decentralized finance (DeFi) through a range of innovative integrations and its proof-of-stake (PoS) mechanism.
In the last 45 days alone, Merlin Chain, a Layer-2 blockchain for Bitcoin, has facilitated the bridging of over $13 billion worth of Bitcoin (BTC). With this milestone achieved, the platform is now focused on expanding its offerings to provide more benefits for BTC holders. The ultimate goal is to revolutionize the DeFi landscape for Bitcoin by offering staking rewards and opportunities for yield generation.
Despite Bitcoin’s impressive performance as an asset over the past decade, BTC holders have been limited in their earning potential, according to Merlin Chain founder, Jeff. He expressed excitement about finally offering concrete incentives to BTC investors and hodlers, encouraging them to actively participate in the dynamic DeFi ecosystem.
Merlin Chain aims to level the playing field by granting BTC holders access to a variety of DeFi opportunities beyond simply holding their assets. This includes yield-generating activities like staking, liquidity mining, and yield farming, which have been dominated by Ethereum thus far. By unlocking these possibilities, Merlin Chain hopes to create a DeFi ecosystem for Bitcoin that rivals Ethereum’s well-established platform.
One of the key advantages of Bitcoin in the DeFi space is its robust security and scarcity, which power the BTC DeFi ecosystem. By tapping into a user base that is known for its strong loyalty to Bitcoin, Merlin Chain aims to create a thriving DeFi community centered around the leading cryptocurrency.
To earn rewards on their BTC holdings, users can bridge their assets via Merlin Bridge. By locking their coins on the layer-1, users receive gas BTC that can be staked to generate a wrapped Bitcoin asset known as M-BTC. Holders of M-BTC can earn staking rewards, similar to stETH, while also exploring opportunities such as liquidity provision, lending, borrowing, and derivatives.
Merlin Chain’s growth as a prominent Bitcoin Layer-2 network for yield generation is evident in the over $13 billion worth of assets that have been bridged to and from the platform. Additionally, the network has distributed over $700 million in BTC rewards to Layer-2 networks that offer complementary incentives.
With a total value locked (TVL) of over $1.2 billion, Merlin Chain has collaborated with leading digital asset custodians and institutions to further enhance its offerings. Partnerships with Fireblocks, Cobo, Ceffu, and Antalpha, a subsidiary of Bitmain, showcase the platform’s commitment to expanding its DeFi ecosystem for Bitcoin holders.