Bitcoin powered blockchain Basic foundation launched a liquid staking token pegged to Bitcoin Bitcoin/USD as an innovative solution to address challenges that have long plagued the DeFi space.
What happened: Core Foundation’s LstBTC is a liquid ERC-20 staking token pegged 1:1 to Bitcoin, allowing BTC holders to earn daily CORE token rewards while maintaining the liquidity of their Bitcoin.
LstBTC addresses the age-old problem of choosing between staking and liquidity in the DeFi space. Traditional BTC staking often requires locking up assets, making them inaccessible for other uses. LstBTC eliminates this problem by preserving the value of Bitcoin and providing the benefits of staking.
Unlike standard staking, LstBTC allows holders to maintain full liquidity, allowing their Bitcoin to be used for lending, transferring, and trading like any other ERC-20 token.
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Why it matters: LstBTC is issued on the Core blockchain and has 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. Providing a solution to the liquidity challenge allows Bitcoin holders to enjoy the benefits of staking without compromising the liquidity of their assets.
This development could potentially revolutionize the way Bitcoin is used in the DeFi space, opening up new opportunities for users and fostering further growth in the ecosystem.
And then?:Bitcoin’s influence as an institutional asset class is set to be explored in depth at Benzinga’s upcoming Future of Digital Assets event on November 19.
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