Core Foundation launches LstBTC liquid staking token in Seoul

On September 6, 2024, the Core Foundation announced the launch of LstBTC, a liquid staking token designed for the Core blockchain. This ERC-20 token is pegged 1:1 with Bitcoin, addressing the liquidity challenges faced by Bitcoin holders who wish to stake their assets without sacrificing their liquidity. Traditional staking often requires locking up Bitcoin, limiting its use in decentralized finance (DeFi) activities. LstBTC allows users to maintain liquidity while earning staking rewards, thus enhancing their participation in the evolving BTCfi ecosystem. Each LstBTC token is fully backed by one Bitcoin, ensuring stable value and allowing holders to engage in lending, transferring, and swapping like any other ERC-20 token. This innovative approach provides a significant advantage for Bitcoin holders, enabling them to maximize returns without compromising their ability to engage in DeFi activities. The introduction of LstBTC is expected to expand the Core blockchain's BTCfi ecosystem, which already includes various financial services such as lending, borrowing, and decentralized exchanges. The security of LstBTC is bolstered by a Multisig setup on the Bitcoin network, managed by reputable entities, which enhances trust in the system. This method, while requiring a slight increase in trust, is a common practice in established protocols. The Core blockchain serves as a Proof of Stake layer for Bitcoin, contributing to the security and utility of the network, with over 5,000 BTC staked since April 2024. Rich Rines, an Initial Contributor at Core, emphasized that LstBTC resolves the longstanding dilemma faced by Bitcoin holders, allowing them to earn rewards while keeping their assets liquid. This development marks a significant step forward in the integration of Bitcoin into the DeFi landscape, providing users with greater flexibility in managing their investments.