Merlin Chain, a Layer 2 blockchain designed specifically for Bitcoin, aims to offer Bitcoin holders the opportunity to earn yields, a feature long-awaited by those invested in the world’s most valuable cryptocurrency. Through a combination of cutting-edge decentralized finance (DeFi) integrations and a Proof-of-Stake (PoS) consensus mechanism, users will have access to various DeFi services and the ability to earn staking rewards, bringing Bitcoin on par with other blockchains like Ethereum.
While Ethereum investors have had numerous ways to generate returns through activities such as yield farming, liquidity mining, and staking incentives, Bitcoin holders have not had the same opportunities for additional income beyond the asset’s value appreciation. The team behind Merlin Chain is dedicated to changing that.
According to Merlin Chain Founder Jeff, users looking to earn yield on their Bitcoin must first bridge their Bitcoin to the network using the Merlin Bridge. They then lock their Bitcoin on Layer 1 and receive gas Bitcoin, which can be staked in Merlin’s proof of stake mechanism, resulting in the creation of M-BTC, a wrapped Bitcoin asset that offers staking rewards similar to stETH.
Once this process is complete, Bitcoin users can:
– Earn SolvBTC by staking M-BTC on DeFi platforms like Solv Protocol to access DeFi services.
– Provide liquidity and earn returns from top DeFi protocols integrated with Merlin.
– Utilize Bitcoin capital for borrowing, lending, derivatives, and other DeFi activities.
To earn rewards, users can connect SolvBTC assets to Layer 2 Bitcoin networks such as Linea.
In the past 45 days, over $13 billion worth of Bitcoin has been bridged to and from the Merlin Chain network, with over $700 million dispersed from Merlin to Layer 2 networks offering additional rewards. To enhance the security of its PoS mechanism, Merlin Chain has partnered with leading cryptocurrency custodians and organizations including Fireblocks, Cobo, Ceffu, and Antalpha, a subsidiary of Bitmain.
To increase participation and decentralize the network’s validator set, Merlin Chain is working with more than 10 major institutions. These efforts reflect the platform’s commitment to providing a secure and transparent blockchain environment for all users.