DeFi Technologies Launches Core Chain Validator, Enables 1,498 Bitcoins
DeFi technologies launch a validating node on the core chain and hold a stake of nearly $100 million worth of Bitcoin (BTC) on it. Toronto-based DeFi Technology accepts rewards by validating transactions and embedding rewards through sub-value.
Staking is enabled by the core Ethereum virtual machine compatible consensus mechanism at layer-1, the BTC-powered blockchain. Olivier Rousey Newton, CEO of Defy Technologies, said:
“We are advancing our mission of bridging traditional finance with innovative blockchain technology. […] This approach gives our investors unique exposure to productivity and growth in the digital asset space.
Stakeholders claim to hold BTC for as long as it is locked and receive rewards in CORE tokens, which are reinvested in the product. Staked CORE offers a reward of 11.66%.
Security is maintained by distributing 50% of BTC mining hash power to the blockchain itself. Excluding the share of new DeFi technologies, Core has a share of more than 2,800 BTC.
DeFi technologies and Core are already working together.
This is the second step of the cooperation of the companies. On May 10, they launched the Valor bitcoin staking exchange on the Nordic Growth Market exchange, using the Swedish krona as the base currency.
RELATED: Defy Technologies subsidiary Valor surpasses $274 million in AUM
Claiming to be the first yielding BTC ETP, the Valor ETP offers BTC exposure with a yield of 5.65% and a management fee of 1.9%. The partners intend to launch a core ETP that will provide yield in BTC shares.
Valor offers ETPs backed by 12 coins, including Uniswap and Polkadot, as well as a basket of 10 coins, Bitcoin Carbon Neutral (BTCN) and the STOXX Bitcoin Suisse Digital Asset Blue Chip X Index. Some of their offerings have no administration fees.
DeFi technologies seem to be very good with the BTC pillar
This decision is in line with the recent pivot of DeFi technologies to become more dependent on BTC. DeFi Technologies announced on June 10 that it had adopted BTC as its primary treasury asset and purchased 110 BTC as part of its strategy. That announcement led to a 23 percent increase in DeFi Technologies' stock price.
As of May 31, DeFi Technologies had a cash balance of $51 million, and Valor had $607 million in assets under management (AUM). As of mid-March 2022, Valuer's AUM stood at $274 million.
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