Bitcoin Enters New Era with Decentralized Finance Integration by Merlin Chain


The Bitcoin community is buzzing with the stirring advent of decentralized finance (DeFi) integration, heralded by the recent developments coming from Merlin Chain. This Bitcoin-based Layer-2 blockchain platform has just unveiled its proof-of-stake (POS) system, together with comprehensive DeFi integrations. These two strategic initiatives offer Bitcoin holders an unprecedented gateway to a world of yield potential within the broader DeFi ecosystem.

Merlin Chain is a devoted pioneer, ushering Bitcoin into the decentralized finance world. The platform enables Bitcoin congregants to harvest staking rewards and tap into a range of promising yield opportunities. These include suitably rewarding DeFi activities such as yield farming and lending/borrowing opportunities.

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Merlin’s POS system, in unison with its robust DeFi integration, is a purpose-built vehicle to empower Bitcoin asset holders. By offering them unlimited entry points into the DeFi matrix, it poses a formidable challenge to the often-perceived dominance of Ethereum in the DeFi industry.

Over the years, Ethereum, along with other cryptocurrencies, has capitalized on the lucrative aspects of DeFi, generating yields from activities like staking rewards, liquidity mining, and yield farming. Merlin Chain now aims to grant Bitcoin holders identical opportunities.

Jeff Yin, the founder of Merlin Chain, firmly believes that this cutting-edge development brings Bitcoin onto equal competitive footing with Ethereum in the rebellious world of DeFi, at last providing a yield earning opportunity for the digital monetary enthusiasts.

There’s no arguments on the exponential return potential Bitcoin has delivered in the last decade, but in Yin’s perspective, holders have sorely missed out on the yields offered by other ecosystems. This is precisely why the team at Merlin Chain is excited to gift Bitcoin investors and hodlers tangible reasons to not only hold but also earn and actively participate in the exhilarating world of DeFi.

However, to reap the yield potential of DeFi as a Bitcoin holder, one must first bridge their Bitcoin coins via its Merlin Bridge to the Merlin network. Once complete, the Bitcoin assets are locked on Bitcoin’s Layer-1 and exchanged for gas BTC suitable for staking into Merlin’s PoS mechanism. This process culminates in the generation of M-BTC, a wrapped bitcoin asset that earns staking rewards similar to stETH.

The resultant M-BTC tokens can now be freely utilized across all Merlin-supported DeFi platforms. This gives users reign to stake their “synthetic BTC” into DeFi platforms, provide liquidity, earn yields, explore lending/borrowing channels, and extract SolvBTC assets onto Bitcoin Layer2 networks such as Linea to earn rewards.

Merlin Chain isn’t just content with the current offerings, they promise to add more capabilities in the near future.

The versatility unlocked by these use cases effectively mirrors the mature DeFi ecosystem of Ethereum observed Yin. But now they’re strengthened by the security and scarcity native to the Bitcoin network, drawing upon the undeniably passionate crypto user base that exists.

Since its launch in April, Merlin Chain has seen monumental bridge requests involving over $13 billion worth of Bitcoin. In addition, the platform has exceptionally distributed over $700 million worth of Bitcoin to other Layer 2 networks that offer complimentary rewards. Supported by a host of leading crypto custodians, including Fireblocks, Cobo, Ceffu and Antalpha, Merlin Chain currently commands an impressive $2.7 billion worth of crypto assets under its proverbial “lock and key”.