Merlin Chain is making it a priority to provide yield opportunities to Bitcoin holders through its Proof-of-Stake (PoS) consensus mechanism and innovative decentralized finance (DeFi) integrations. By allowing Bitcoiners to earn staking rewards and access DeFi services, Merlin Chain puts BTC on par with blockchains like Ethereum.
Revolutionizing Bitcoin
Merlin Chain, a Layer-2 blockchain built for Bitcoin, is on a mission to bring some long-awaited opportunities for yield to holders of the world’s most valuable cryptocurrency, BTC. The network’s Proof-of-Stake (PoS) consensus mechanism, combined with its impressive suite of decentralized finance (DeFi) integrations, is designed to give Bitcoiners opportunities to earn staking yields and access various DeFi services, finally putting BTC on par with blockchains like Ethereum.
For many years, Ethereum investors enjoyed yield-generating avenues like staking rewards, liquidity mining, and yield farming. On the other hand, just holding Bitcoin has not really provided the same incentives or income beyond expecting the gradual rise in BTC’s value. The team behind Merlin Chain is determined to change this.
According to Merlin Chain’s founder, “everyone knows Bitcoin has been one of the best-performing assets over the past decade, hilariously detonating the cynical predictions of many anti-crypto critics, but holders have missed out on yields that other ecosystems provide. This is why Merlin Chain is so excited about finally giving BTC investors and hodlers concrete incentives to not just HODL, but earn and participate in the DeFi ecosystem!”
How to Start Earning Yields
Users who are looking to use Merlin Chain to earn yield on their Bitcoin must first bridge their BTC to the network using the Merlin Bridge. After this they can lock it on Layer-1 and receive gas BTC which can then be staked into Merlin’s PoS mechanism. This generates M-BTC, which is a wrapped Bitcoin asset that earns staking rewards very similar to stETH.
From there, Bitcoiners can stake M-BTC into DeFi platforms like Solv Protocol to earn SolvBTC, which provides access to various DeFi services. They can also supply liquidity and earn yields from leading DeFi protocols integrated with Merlin, explore opportunities in lending, borrowing, and derivatives using BTC capital, and bridge SolvBTC assets to Bitcoin Layer-2 networks like Linea to earn even more rewards.
In essence, the new cases almost mimic those of Ethereum’s more mature DeFi ecosystem. Only now, they are powered by the security and scarcity of the Bitcoin network, and tap into probably the largest crypto user base that exists.
Merlin Chain’s Achievements
Merlin Chain has seen more than $13 billion worth of Bitcoin bridged to and from its network in the last 45 days alone. Additionally, over $700 million worth of BTC has been distributed from Merlin out to Layer-2 networks offering complementary rewards.
The platform also collaborated with many leading crypto custodians and institutions to boost the security of its PoS mechanism. Some of these companies include Fireblocks, Asia’s largest custodian Cobo, Ceffu, and Bitmain subsidiary Antalpha.
To add to all of this, Merlin Chain is also working with over ten major institutions to scale participation and decentralize the network's validator set.
What is Merlin Chain?
The Merlin Chain is a Bitcoin Layer-2 solution that is designed to improve the functionality and efficiency of Bitcoin's native assets, protocols, and products on its Layer-1 network. One of Merlin Chain’s main goals is to "Make Bitcoin Fun Again" by addressing the limitations of Bitcoin's core infrastructure by integrating technologies like the ZK-Rollup network, decentralized oracle network, Data Availability, and on-chain BTC fraud proof modules.
Merlin Chain is still a relatively new project as it was launched in January of 2024. It emerged from Bitmap Technology, a company founded by Jeff Merlin.
Unlike projects that try to replace Bitcoin, Merlin Chain is much more focused on empowering and optimizing Bitcoin itself. By using Layer-2 technologies, the Merlin Chain hopes to elevate Bitcoin's capabilities, reduce transaction costs, and speed up transaction processing times.
It is well known by now that Bitcoin's Layer-1 blockchain has really struggled with issues like network congestion, slow processing times, high transaction fees, and limited room for innovation. The Merlin Chain tackles these challenges by offering virtually unlimited transaction capacity, cost-effective operations, and rapid transaction speeds. This not only improves the overall efficiency of the Bitcoin network but also encourages innovation in the Bitcoin ecosystem, making it a lot more versatile and user-friendly.
