Core Foundation, a group dedicated to promoting ecosystem development on Core’s Bitcoin-powered blockchain, has unveiled LstBTC, an ERC-20 liquid staking token directly tied to Bitcoin (BTC) with a 1:1 ratio. This innovation allows BTC holders to earn daily rewards in CORE tokens while maintaining the liquidity of their Bitcoin, providing a solution to the ongoing challenge of balancing staking and liquidity in the DeFi space.
Addressing the Liquidity Challenge
Bitcoin holders have traditionally faced a difficult decision between staking their assets for rewards and keeping them liquid for participation in DeFi. Conventional BTC staking often involves locking up assets, limiting their use. LstBTC eliminates this trade-off by preserving Bitcoin’s value while providing the advantages of staking. Holders can now retain their BTC liquidity and fully participate in the evolving BTCfi ecosystem.
How LstBTC Works
Each LstBTC token is fully pegged to one BTC, ensuring its value remains stable. Unlike traditional staking, LstBTC allows holders to maintain 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 seeking to maximize their returns without sacrificing their ability to participate in DeFi activities.
Enhanced Security with Multisig Setup
LstBTC is issued on the Core blockchain and uses a Multisig setup on the Bitcoin network. While this requires a slight increase in trust, the Multisig setup is managed by reputable entities, a practice widely employed in many established protocols. The Multisig wallets undergo rigorous security audits, guaranteeing that users’ assets are well-protected, while still allowing them to benefit from the liquidity and rewards offered by LstBTC.
Expanding the BTCfi Ecosystem
LstBTC will further expand Core’s existing comprehensive BTCfi ecosystem, which includes lending, borrowing, restaking, DEXs, perpetual futures, and NFT platforms. By bridging the gap between staking and liquidity, LstBTC provides 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 liquid and active in the ecosystem.”
A Solution That Meets Market Needs
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 option for those looking to engage more fully in the BTCfi ecosystem.See more on LstBTC in this explainer video: . For more information about the Core Foundation and Core blockchain, please visit .
About Core
Core serves as the Proof of Stake layer for Bitcoin as the first enabler of Non-Custodial Bitcoin Staking, which secures a fully EVM-compatible BTCfi ecosystem. Since April 2024, valued at more than $300 million have been staked with Core, enhancing Bitcoin’s utility and security.
Core is the most Bitcoin-aligned EVM blockchain with ~55% of Bitcoin mining hash power contributing to the network’s security. This breakthrough has amassed millions of Core adopters – over , , and since its mainnet launch in January 2023.
Disclaimer: This press release is for informational purposes only and does not constitute investment advice or an offer to invest.
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