Toronto-based DeFi Technologies has made a significant move in the DeFi space by launching a validator node on the Core Chain and staking a substantial amount of Bitcoin (BTC) on it. This initiative strengthens their presence in the blockchain industry and showcases their commitment to the Core Chain ecosystem.
DeFi Technologies, through its subsidiary Valour Inc., will stake a total of 1,498 BTC, valued at nearly $100 million at current prices. This stake allows them to participate in the network’s consensus mechanism and earn rewards for validating transactions. Notably, stakers retain custody of their BTC throughout the process.
The Core Chain utilizes a unique consensus mechanism compatible with the Ethereum Virtual Machine (EVM). This enables features like staking for BTC, a functionality not available on the original Bitcoin blockchain. Rewards for staking are distributed in CORE tokens, the native token of the Core Chain.
This collaboration builds upon an existing partnership between DeFi Technologies and Core Foundation. Earlier this year, they joined forces to develop innovative Bitcoin Exchange Traded Products (ETPs). One such product is Valour’s Yield Bearing BTC ETP, leveraging Core Chain’s features to offer yield opportunities through BTC staking.
DeFi Technologies’ CEO, Olivier Roussy Newton, emphasized their mission to bridge traditional finance with blockchain technology. This approach provides their investors with unique exposure to potential yield and growth within the digital asset space.
The move also benefits the Core Chain by adding a major player as a validator and increasing the total amount of staked BTC on the network. This strengthens the security and decentralization of the Core Chain ecosystem.
While DeFi Technologies’ involvement is a positive development for the Core Chain, some discussions remain regarding the broader implications of staking on the overall DeFi market. However, this collaboration signifies a notable step towards bridging traditional and decentralized finance through innovative solutions.
