Bitcoin-powered layer 1 blockchain Core Chain now allows investors to stake BTC. This is something that no BTC holder has been able to do so far.
Staking tokens gives users a yield (often in the single digits) over a period of time. This is famously limited to proof-of-stake blockchains. Bitcoin traders using proof of work are unable to stake their tokens.
However, Core Chain now allows BTC holders to earn yield by participating in Core Chain's consensus mechanism called Satoshi Plus, which combines Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS). It has become. According to Core Chain, allowing users to stake BTC is the next step in making the blockchain compatible with Ethereum Virtual Machine.
In a sense, traders may have been able to stake their Bitcoin for some time now if they didn't worry about wrapping their tokens or losing control of their assets. Core Chain's new service requires neither of those, and is described as the “first of its kind” non-custodial BTC staking.
Alongside this announcement, Valour, a subsidiary of DeFi Technologies Inc., announced the launch of a yield-bearing BTC Exchange Traded Product (ETP) and the new Core ETP in collaboration with the Core Foundation.
According to the release, BTC ETP with Yield provides yield directly from block rewards on the core chain. Core ETPs, on the other hand, aim to expand investors' access to core staking opportunities through indirect exposure.
“We are at a pivotal moment in the evolution of digital assets, and the boundaries between traditional and decentralized finance,” Olivier Roussy-Newton, CEO of DeFi Technologies, said in a release. “Not only are they becoming vague, but they are also merging.” By gaining access to Bitcoin through these ETPs, we not only increase its utility, but also offer investors a new way to engage with the world's best cryptocurrency. ”
Valor also controls validator nodes on the core blockchain and said it plans to stake $100 million in BTC through a new non-custodial BTC staking product.
For Core, this comes after a few strong months. In March, the Core Foundation launched the Core Venture Network, pledging its $15 million in funding to builders in Africa, Latin America and Southeast Asia.
A month later, Core announced: New NFT Marketplace We launched CoreBTC as a way to run natively on the blockchain and bridge BTC to the core chain. Soon after, his CORE token soared 218% in just one week.
Edited by Stacey Elliott.
