Key Points
- Merlin Chain, a Layer 2 blockchain, allows Bitcoin (BTC) holders to earn staking rewards and access DeFi opportunities.
- The blockchain has distributed over $700 million worth of BTC to Layer 2 networks and aims to bring Bitcoin on par with Ethereum.
Merlin Chain, a Layer 2 blockchain, has introduced staking rewards for Bitcoin (BTC) holders.
The blockchain enables BTC holders to access lucrative Decentralized Finance (DeFi) opportunities.
Bitcoin and Ethereum Parity
Merlin Chain is designed to provide yield to BTC holders by presenting unique opportunities.
It has distributed more than $700 million worth of BTC to Layer 2 networks offering rewards.
The protocol has seen over $13 billion worth of BTC bridged to and from its network in the past 45 days.
Merlin Chain uses a Proof-of-Stake (PoS) consensus mechanism combined with innovative DeFi integrations.
Its long-term goal is to bring Bitcoin on par with other blockchains like Ethereum, where staking yield is common.
Unlike Ethereum investors, Bitcoin holders haven’t had access to yield-generating opportunities like staking rewards, liquidity mining, and yield farming.
Merlin Chain aims to change this by providing incentives for BTC holders.
Benefits for Bitcoin Investors
Bitcoin holders on Merlin Chain can access various services and benefits.
They can stake M-BTC, a wrapped Bitcoin asset that earns staking rewards similar to stETH.
M-BTC staking can be done on DeFi platforms like Solv Protocol, where users can earn SolvBTC for accessing DeFi services.
Users can also provide liquidity and earn yields from leading DeFi protocols integrated with Merlin Chain.
They can explore lending, borrowing, derivatives and other DeFi primitives with BTC capital.
Additionally, they can bridge SolvBTC assets out to Bitcoin Layer2 networks like Linea to earn rewards.
To access these services, investors must first bridge their BTC holdings to the network using the Merlin Bridge.
They then lock it on Layer-1 and receive gas BTC, which can be staked into Merlin’s PoS mechanism to generate M-BTC.
