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Core blockchain introduces LstBTC for liquid Bitcoin staking

GrafaGrafa2024/09/05 06:55
By:Isaac Francis

The Core Foundation has launched LstBTC, an ERC-20 liquid staking token pegged 1:1 with Bitcoin (CRYPTO:BTC), aiming to provide Bitcoin holders the flexibility to earn staking rewards while maintaining liquidity.  

This new token allows users to earn daily rewards in CORE tokens while keeping their Bitcoin available for use in decentralised finance (DeFi) applications.  

Rich Rines, an initial contributor to Core DAO, highlighted the potential of LstBTC, noting that while Bitcoin dominates the crypto market cap, it remains underrepresented in DeFi activities.  

This is partly because no asset has offered a compelling mix of yield, security, and alignment with Bitcoin.  

LstBTC could change that by becoming a valuable asset for Bitcoin-based DeFi.  

The introduction of LstBTC addresses a common issue in crypto: the choice between staking and liquidity.  

Traditional Bitcoin staking often requires locking up assets, making them unavailable for other uses.  

LstBTC solves this by allowing holders to stake their Bitcoin and earn rewards without sacrificing liquidity.  

“LstBTC will enable those stakers to take the next step in their BTCfi journey, transitioning from mere yield-bearer to full-on Bitcoin user,” said Rines.  

He suggested that LstBTC could quickly become a dominant Bitcoin DeFi asset due to its flexibility and benefits.  

LstBTC uses a multi-signature setup on the Bitcoin network, managed by multiple entities and subject to security audits.  

While this setup offers a layer of security, it introduces additional parties into the process compared to directly holding Bitcoin.  

This approach is becoming more common in DeFi, where multiple entities help manage assets to enhance safety.  

The launch of LstBTC aligns with a growing interest in Bitcoin-based financial products.  

Rines noted that Bitcoin remains central to the crypto industry, and many projects are increasingly focusing on Bitcoin integration.  

He pointed out that chains and projects that were previously Bitcoin-agnostic are now returning to Bitcoin as a key element in their ecosystems.

At the time of reporting, the Bitcoin (BTC) price was $57,129.54.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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