Merlin Chain is bringing decentralized finance (DeFi) opportunities to Bitcoin holders through innovative integrations and its proof-of-stake (PoS) mechanism.

The Bitcoin Layer-2 blockchain, Merlin Chain, has facilitated the bridging of more than $13 billion worth of Bitcoin (BTC) in the last 45 days. The platform aims to further grow by offering more benefits to BTC holders, positioning itself as a game-changer for staking rewards and yield generation on Bitcoin. The goal is to enable greater access to DeFi for BTC holders, providing lucrative opportunities beyond simply holding the asset.

Merlin Chain’s Vision for Bitcoin’s DeFi Landscape

Despite Bitcoin’s strong performance over the past decade, many holders have missed out on various earning opportunities, according to Merlin Chain founder Jeff.

“We are therefore delighted to finally grant BTC investors and hodlers concrete incentives to not just HODL, but earn and participate in the exciting DeFi ecosystem!”

Ethereum currently dominates yield-generating prospects such as staking, liquidity mining, and yield farming. However, Merlin Chain is unlocking these opportunities for Bitcoin, aiming to mirror Ethereum’s mature DeFi ecosystem. Bitcoin’s robust security and scarcity are expected to power the BTC DeFi ecosystem, tapping into a dedicated user base.

Stake BTC to Earn Rewards

Users can earn yield on their BTC by bridging via Merlin Bridge. When a holder locks their coins on the layer-1, they receive gas BTC, which can be staked to generate a wrapped Bitcoin asset, M-BTC. Similar to stETH, holders of M-BTC earn staking rewards. Additional opportunities with M-BTC include liquidity provision for yields, lending, borrowing, and derivatives. Users can stake M-BTC on Solv Protocol or bridge SolvBTC on Linea, among other DeFi integrations.

Over $700 Million in Rewards Distributed

Merlin Chain’s prominence as a top Bitcoin Layer-2 for yield is evident, given the $13 billion worth of assets bridged to and from the network. Furthermore, over $700 million in BTC rewards have been distributed from the platform to Layer-2 networks that offer complementary rewards.

Merlin Chain, which currently has over $1.2 billion in total value locked (TVL), has partnered with leading digital asset custodians and institutions to enhance its activities. These include Fireblocks, Cobo, Ceffu, and Antalpha, a subsidiary of Bitmain.

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