Merlin Chain Launches BTC Staking with 21% Annual Yield

Merlin Chain, a Bitcoin Layer2 network, has officially launched its BTC staking feature, allowing users to engage in the Proof of Stake (PoS) mechanism using their Bitcoin holdings. This new feature enables users to participate in network security and earn rewards without the need for complex unchaining operations. The annualized yield for this staking feature can reach up to 21%, making it an attractive option for Bitcoin holders looking to maximize their returns.

The initial staking pool has been opened with a capacity limit of 50 BTC, and the reward settlement is expected to take place in early October 2025. Merlin Chain plans to gradually expand the staking pool based on market demand, ensuring a steady and scalable growth in participation. This update signifies Merlin Chain's official entry into the Bitcoin PoS phase, marking a significant milestone in the network's development.

Jeff, the founder of Merlin Chain, has stated that the company will continue to promote the standardization of BTC staking mechanisms. The goal is to build a cross-chain BTC liquidity network, providing Bitcoin with composable and revenue-generating infrastructure support. This initiative aims to enhance the utility and liquidity of Bitcoin across various blockchain ecosystems, fostering a more interconnected and efficient financial landscape.

Prior to this launch, Merlin Chain's Layer2 mapped asset, M-BTC, has been deployed on over 20 mainstream public chains, including Ethereum, Solana, Kaito, and Sui. The active Total Value Locked (TVL) in these deployments exceeds $4 billion, highlighting the widespread adoption and trust in Merlin Chain's technology. The ecosystem around Merlin Chain has also seen significant growth, with partnerships established with various BTCFi projects such as Babylon and Zerolend. These collaborations promote scenarios such as staking, borrowing, and re-staking, providing early support to long-term participants in the BTCFi track, including Solv Protocol and Avalon Labs.