LstBTC: New Token Pegged to Bitcoin Allows Users to Earn Staking Rewards While Keeping Their Bitcoin Liquid, Active and Safe

The Core Foundation, a group dedicated to sponsoring ecosystem development on Core's Bitcoin-powered blockchain, has announced LstBTC, an ERC-20 liquid staking token pegged 1:1 with Bitcoin (BTC).

A new ERC-20 token, pegged 1:1 with Bitcoin (BTC), has been announced by the Core Foundation, a group sponsoring ecosystem development on Core's Bitcoin-powered blockchain. This innovation, dubbed LstBTC, will enable BTC holders to earn daily rewards in CORE tokens while maintaining the liquidity of their Bitcoin—a solution to the longstanding challenge in the DeFi space.

For Bitcoin holders, the choice between staking their assets for rewards and keeping them liquid for participation in DeFi has always been a difficult one. Traditional BTC staking often requires locking up assets, making them unavailable for other uses. However, LstBTC eliminates this trade-off by preserving Bitcoin's value while offering the benefits of staking. Holders can now keep their BTC liquid and participate fully in the evolving BTCfi ecosystem.

Each LstBTC token is fully pegged to one BTC, ensuring that its value remains stable. Unlike standard staking, LstBTC allows holders to retain full liquidity, meaning their Bitcoin can still be used for lending, transferring and swapping like any other ERC-20 token. This flexibility is a game-changer for those who want to maximize their returns without compromising their ability to engage in DeFi activities.

LstBTC is issued on the Core blockchain and features a Multisig setup on the Bitcoin network. While this does require a slight increase in trust, the Multisig setup is managed by reputable entities, a practice widely adopted in many established protocols. The Multisig wallets will also undergo rigorous security audits, ensuring that users' assets are well-protected, while still allowing them to benefit from the liquidity and rewards offered by LstBTC.

Core's BTCfi ecosystem already includes lending, borrowing, restaking, DEXs, perpetual futures, and NFT platforms. By bridging the gap between staking and liquidity, LstBTC offers BTC holders greater flexibility in managing their assets.

"Bitcoin holders have long faced a difficult choice between staking their assets and keeping them liquid for participation in the DeFi ecosystem," said Rich Rines, Initial Contributor at Core. "LstBTC changes that by allowing users to earn staking rewards in Core while keeping their Bitcoin.]"

LstBTC is designed for BTC holders who want to maintain their asset liquidity while still earning staking rewards. The Multisig wallet setup, backed by reputable entities and rigorous audits, ensures that security is not compromised, making LstBTC a reliable choice for those looking to engage more fully in the BTCfi ecosystem.

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