The Core Foundation announced the launch of a BTC-backed liquid staking token on the Core network.
Liquid Staking On Bitcoin
The new token, named LstBTC, will be an ERC-20 token pegged 1:1 with BTC and will accrue daily rewards for holders in CORE tokens. According to the Core DAO, LstBTC will be a crucial element in Bitcoin DeFi and help attract new developers to the Core ecosystem. 'LSTs are the missing ingredient in Bitcoin DeFi, and the introduction of LstBTC will help kickstart Core’s ecosystem,' commented Rich Rines, an initial contributor to Core DAO. Core uses the 'Satoshi Plus' consensus mechanism, merging Bitcoin's security with delegated Proof of Stake. Users can stake their BTC in self-custody to secure other blockchains, such as Core, thanks to developments from Babylon. With liquid staking, users can freely move and trade their BTC while still earning passive yield. To protect assets, multisig wallets undergo rigorous security audits.
Bitcoin’s Expanding DeFi Ecosystem
The staking token BTCz was launched on Stacks, another Bitcoin L2, which causes the token's value to increase as the amount of BTC backing it grows. Stacks regularly checks its security through Bitcoin L1, and its smart contracts can read Bitcoin's state. Recently, Stacks released the final stage of its Nakamoto upgrade, significantly speeding up transactions on the platform.
New staking tokens like LstBTC and BTCz demonstrate the growth of Bitcoin's ecosystems, offering users more opportunities for income and participation in DeFi.
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