As you know, the cryptocurrency space is extremely dynamic. New ways to earn rewards and participate in the ecosystem are constantly emerging! One such innovation are yields on Bitcoin BTC, such as those earned through staking, provide a new opportunity for BTC holders. Bitcoin, in its native form, cannot be staked like many PoS cryptos. The good news is that creative solutions have developed to carry those causes across the finish line. BlockchainShock will take you on a thrilling ride toward that solution. To ground things for discussion, we’ll look at the Core/Maple Finance approach in depth, outlining mechanics, security provisions, and potential upsides.
Understanding Bitcoin Staking
Bitcoin staking is the key to getting the most out of your Bitcoin. You collect rewards and you never have to sell your underlying asset. Unlike newer crypto assets that rely on PoS consensus and other variants for their operations, traditional Bitcoin doesn’t have staking mechanisms baked into the protocol. Instead, solutions from platforms such as Core/Maple Finance have developed novel methods to deploy Bitcoin within decentralized finance (DeFi) to earn yield.
What is Bitcoin Staking?
In this case, Bitcoin staking is the process of locking up your Bitcoin on a third party platform. By taking this step, you’ll be able to take part in a number of exciting DeFi activities. Such activities might involve using their assets to provide liquidity, lend them out or engage in other yield-generating protocols. When you stake your Bitcoin, you’re rewarded for doing so. These incentives typically arrive in the form of extra Bitcoin as well as various other tokens. This enables BTC holders to earn passive income on their Bitcoin holdings without needing to sell their Bitcoin.
How Does Staking Work?
The Core/Maple Finance solution requires a few key components and steps:
- Wallet Setup: To participate, you’ll need two separate wallets: An EVM-compatible wallet, such as Rabby or Metamask, and an Xverse or Unisat wallet containing native BTC.
- Minimum Requirements: A minimum of 0.01 Bitcoin and 1 CORE token are required for dual staking, with considerations for gas fees and potential network congestion. It is recommended to have 0.05 BTC for potential network congestion.
- Connecting Wallets: You need to connect your Bitcoin wallet by clicking the “Connect” option next to “BTC Staking Amount”.
- Staking Process: To stake Bitcoin, you need to connect your Bitcoin wallet, enter the amount of Bitcoin you want to stake under “BTC Staking Amount,” and then confirm the Bitcoin amount to stake on the “Stake BTC” page.
- Lock Time: You need to set the lock time for when your staked Bitcoin will be available again, with a default lock time of one month.
- Network Priority: You can specify the network priority speed for your transaction when staking Bitcoin.
- Reward Tiers: Four reward tiers are available for staking: Base, Boost, Super, and Satoshi.
The platform uses your staked Bitcoin to participate in a wide range of DeFi activities. This activity creates yield, which it shares with stakers pro-rata to their stake and their rewards tier qualification.
The Benefits of Staking Bitcoin
Here are some of the most promising advantages to staking Bitcoin via platforms such as Core/Maple Finance.
Earning Passive Income
The most apparent advantage to BTC lending is the ability to earn passive income on your BTC assets. Leverage the power of Bitcoin staking. By staking your Bitcoin, you can earn rewards without the need to actively trade or manage your assets. LONG-TERM BTC HOLDERS. This is particularly attractive to long-term Bitcoin holders. On the flip side, they are broadly committed to growing their collected holdings over time.
Supporting the Network
While not directly supporting the Bitcoin network itself (as Bitcoin uses Proof-of-Work), staking on platforms like Core/Maple Finance contributes to the broader DeFi ecosystem. Through liquidity provision and active engagement in other DeFi endeavors, stakers play an essential role in fostering a thriving and resilient decentralized finance ecosystem.
The Difference 10,000 TPS Makes
TPS is one of the most important measures of success for a blockchain network. A higher TPS means that more transactions can be processed faster, cheaper, and at scale. Of course, this has huge consequences for staking as a service platforms operating on top of these networks.
Scalability in Transactions
Indeed, a network that only settles 10,000 TPS can settle at least 24 times that many staking transactions. This provides it with a significant competitive advantage over networks with lower TPS. That way, more users can join in staking without facing long wait times and expensive transaction costs. Scalability would be a key factor in increasing Bitcoin staking’s adoption.
Impact on Staking Efficiency
Greater TPS means less time between processing a staking reward and a staking withdrawal. Stakers will now be able to claim their rewards more quickly and efficiently, making the staking process a better overall experience. This operational efficiency further helps to bring more users onto the platform, increasing the overall activity—and thus the value—of the network even more.
Everyday Access With Real Speed
Probably one of the big challenges that blockchain tech is facing is creating a user-friendly experience for the everyday user. This means increasing transaction speed to the immediate interactions consumers expect today.
User Experience Improvements
With an improvement in transaction speed—particularly in throughput for smart contract execution—this will create a better experience for users. Whether staking or unstaking Bitcoin, users desire a fast and frictionless experience. When a network that’s theoretically capable of supporting low TPS looks great on performance, this democratizes the experience of staking thereby increasing its appeal to audiences of all sizes.
Faster Transaction Confirmation
In the current state of Bitcoin, on-chain confirmation times can be a drag, which can sour a user’s experience. With staking platforms that utilize these faster networks, confirmation times are often cut down to seconds, creating a much quicker and seamless process for users.
A Scarce Asset That Moves Fast
Second, Bitcoin’s scarcity is a really important part of its value proposition. In order to be truly maximally useful to people, Bitcoin should move fast and efficiently.
The Value Proposition of Bitcoin
Bitcoin has a capped supply of just 21 million coins, making it one of the most scarce assets in the world often referred to as “digital gold.” This limited supply, coupled with rising demand, has propelled its price over the years. Staking platforms are expanding Bitcoin’s value proposition. They allow holders to accrue additional incentives on their scarce assets.
Market Demand Dynamics
Allowing Bitcoin to be staked would boost Bitcoin’s demand. As more people seek to earn passive income through staking, the demand for Bitcoin may rise, potentially driving up its price. Second, as demand for the token increases this can create a positive feedback loop, where increased demand leads to higher prices, which then attracts more stakers.
Getting In Before the Market Catches Up
As Bitcoin staking practices gain traction, early participants will reap the greatest rewards. Getting in before the market comes all the way around and adjusts gives you a leg up.
Timing Your Investment
As in any investments, timing is everything, and the same goes for Bitcoin stake. Getting into the market early might allow you to lock in some of the highest reward rates available. With this strategy you can take advantage of the increasing demand for staking services. As we explored in a recent blog post, this early mover advantage can drive major returns over the long-term.
Identifying Opportunities
So stay tuned for more platforms and opportunities to come to market on the Bitcoin staking space. Make sure you’re familiar with different platforms and their reward rates, along with their security protocols. Then, choose the one that best matches your investment objectives. By being ahead of the curve, you can pinpoint those new, profitable opportunities in the nascent stages—before they become popular with everyone else.
How to Join the Bitcoin Solaris Presale
If you’re looking to join an amazing journey in the Core/Maple Finance ecosystem, we recommend joining the Bitcoin Solaris presale. It’s a pretty amazing experience to start your adventure!
Steps to Participate
- Research: Thoroughly research the Bitcoin Solaris project and the Core/Maple Finance platform. Understand the risks and potential rewards involved.
- Wallet Setup: Ensure you have the necessary wallets set up, including an EVM-compatible wallet and an Xverse or Unisat wallet containing native BTC.
- Purchase CORE Tokens: Acquire CORE tokens, as they are required for participating in the dual staking process.
- Follow Instructions: Carefully follow the instructions provided by the Core/Maple Finance team for participating in the presale.
- Stake Your Bitcoin: Once the presale is complete, stake your Bitcoin and CORE tokens to start earning rewards.
Benefits of Early Involvement
Learn how Bitcoin staking works and learn why it’s valuable. Armed with the right knowledge, those who participate will be able to help shape regulations that foster innovation and open new doors in the burgeoning cryptocurrency space. Disclaimer Always make your own due diligence and research and be aware of the risk involved in cryptocurrency investment before investing in any digital asset.
- Early Access: Gain early access to the Bitcoin Solaris platform and its staking services.
- Potential Discounts: Receive discounted rates on CORE tokens during the presale.
- Higher Rewards: Potentially earn higher staking rewards as an early adopter.
By understanding the mechanics of Bitcoin staking, the benefits it offers, and how to get involved, you can make informed decisions and potentially unlock new opportunities in the world of cryptocurrency. Remember to always do your own research and understand the risks involved before investing in any digital asset.
