Blockchain Core Foundation Launches Liquid Staking Token Pegged Against Bitcoin

Bitcoin-powered blockchain Core Foundation launched a liquid staking token pegged to Bitcoin BTC/USD as an innovative solution for addressing challenges that have long plagued the DeFi space.

What Happened: Core Foundation's LstBTC is an ERC-20 liquid staking token and pegged 1:1 with Bitcoin enabling BTC holders to earn daily rewards in CORE tokens while maintaining the liquidity of their Bitcoin.

LstBTC tackles 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 issue by preserving Bitcoin’s value and offering the advantages of staking.

Unlike standard staking, LstBTC enables holders to maintain full liquidity, allowing their Bitcoin to be used for lending, transferring, and swapping like any other ERC-20 token.

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Why It Matters: 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 stringent security audits, ensuring the safety of users’ assets.

The introduction of LstBTC by the Core Foundation marks a significant milestone in the DeFi space. Offering a solution to the liquidity challenge enables Bitcoin holders to enjoy the benefits of staking without compromising on 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.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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