On June 24, the Bitcoin Layer2 network Merlin Chain officially launched BTC staking functionality, allowing users to participate in the PoS mechanism through BTC, with the current annual yield reaching up to 21%. The first staking vault has been opened, with a capacity limit of 50 BTC, and reward settlement is expected to be conducted in early October 2025, with gradual expansion based on market demand.
This update marks Merlin Chain's official entry into the Bitcoin PoS phase, enabling users to participate in network security maintenance and earn rewards without off-chain operations. Merlin Chain founder Jeff stated that they will continue to promote the standardization of BTC staking mechanisms, build a cross-chain BTC liquidity network, and provide composable and yield-generating infrastructure support for BTC.
Previously, Merlin Chain's Layer2 mapped asset M-BTC has been deployed to over 20 mainstream public chains including Ethereum, Solana, Kaito, and Sui, with an active TVL exceeding $4 billion. In terms of ecosystem, Merlin Chain has collaborated with multiple BTCFi projects like Babylon and Zerolend to advance staking, lending, and restaking scenarios, and has provided early assistance to many long-term participants in the BTCFi track, such as Solv Protocol and Avalon Labs.
