Core Foundation Partners with Maple Finance and Custodians to Boost Bitcoin Staking
The digital asset space has been abuzz with the news of Core Foundation’s partnership with institutional lending protocol Maple Finance and custodians BitGo, Copper, and Hex Trust to push deep into the BTC staking sector. This strategic alliance is expected to open up new opportunities for institutional participants to earn yield on their bitcoin holdings while maintaining the safety and security of their digital assets.
Liquid Staking Token to Revolutionize DeFi
Core’s IstBTC token, set to be issued in the coming months, will enable staked BTC to be used as collateral for borrowing in DeFi or with trading counterparties. This innovative solution is poised to unleash a new wave of liquidity into the DeFi ecosystem, making it more accessible and attractive to a broader range of participants.
Staking Solutions for a Secure Bitcoin Network
According to Maple CEO Sid Powell, the ability to earn yield on bitcoin and potentially unleash a new wave of liquidity into the DeFi ecosystem has become a hot topic in the industry. "Bitcoin’s security budget will face problems in a few years as miners receive less block reward revenue," Powell noted in an interview. "Staking solutions like CORE can help strengthen Bitcoin network security by providing alternative revenue sources to miners. Holders of lstBTC will benefit from this by earning yield on their BTC while in custody, which represents an immense total addressable market."
Maple’s Existing BTC Staking Product
Maple launched an existing BTC staking product on CORE this month, involving locking up BTC for 90 days and offering a yield target of 5%+ APY. The liquid staking token, lstBTC, will be instantly redeemable, offering better liquidity. As a result, Maple expects a slightly lower APR range.
Competitive Advantage
Core’s strategic partnership with Maple Finance and custodians has placed it in an excellent competitive position, with the potential to be the first to market with a yield-bearing BTC liquid staking token. "There are few BTC yield options out there," Powell emphasized. "If you look across the stack, most of them are just points, and they’re not liquid yet or delivering yield in BTC."
Conclusion
The partnership between Core Foundation, Maple Finance, and custodians marks a significant milestone in the development of the DeFi ecosystem. By providing a secure and liquid staking solution, this alliance has the potential to open up new opportunities for institutional participants and further cement Bitcoin’s role in the global digital economy.
FAQs
Q: What is the purpose of the partnership between Core Foundation, Maple Finance, and custodians?
A: The partnership aims to provide a secure and liquid staking solution for institutional participants, enabling them to earn yield on their bitcoin holdings while maintaining the safety and security of their digital assets.
Q: What is the yield target for Maple’s existing BTC staking product?
A: The yield target is 5%+ APY for a 90-day lock-up period.
Q: How does the liquid staking token, lstBTC, work?
A: lstBTC is an instantly redeemable token that can be used as collateral for borrowing in DeFi or with trading counterparties, offering better liquidity than traditional staking solutions.
Q: What are the benefits of staking solutions like Core’s IstBTC?
A: Staking solutions like Core’s IstBTC can help strengthen Bitcoin network security by providing alternative revenue sources to miners, while also enabling holders to earn yield on their BTC while in custody.
