Core Foundation, a Bitcoin-powered blockchain, has launched LstBTC, a liquid staking token pegged to Bitcoin. This innovative solution addresses a key challenge in the DeFi space: balancing the benefits of staking with the need for liquidity.
LstBTC, an ERC-20 token, is pegged 1:1 with Bitcoin. This means that Bitcoin holders can stake their BTC and earn daily rewards in CORE tokens, without losing the ability to use their Bitcoin. Traditionally, Bitcoin staking often involves locking up assets, making them inaccessible for other uses. LstBTC eliminates this barrier by preserving the value of Bitcoin while offering the benefits of staking.
The key advantage of LstBTC lies in its liquidity. Unlike standard staking, LstBTC holders retain full control over their Bitcoin. They can lend, transfer, or swap their LstBTC just like any other ERC-20 token. This flexibility opens up new possibilities for Bitcoin holders, allowing them to participate in DeFi applications without sacrificing the liquidity of their assets.
LstBTC is issued on the Core blockchain and features a Multisig setup on the Bitcoin network. This setup is managed by reputable entities and undergoes rigorous security audits, ensuring the safety of users’ assets.
The introduction of LstBTC by the Core Foundation marks a significant milestone in the DeFi space. By addressing the liquidity challenge, it empowers Bitcoin holders to enjoy the benefits of staking without compromising on the liquidity of their assets. This development has the potential to revolutionize the way Bitcoin is used within DeFi, opening up new opportunities for users and fostering further growth in the ecosystem.
