250602 Merlin Monday Summary

TL;DR

MERL Staking Launch

  • MERL six-month staking launched later this week with 45% APR.

  • Supports no-loss arbitrage by staking and shorting MERL.

  • Drawing strong institutional interest.

MBTC & BTCFi Vision

  • MBTC enables Bitcoin integration on major chains like Solana, Arbitrum, Base, and Sui.

  • Growing institutional and government BTC yields adoption.

  • New BTC-backed stablecoin and yield farming projects coming soon.

Market & Liquidity Expansion

  • Broad listings on CEX, DEX, and perps fueling growth.

  • Wide exchange access crucial for adoption; 10+ platforms recently listed MERL.


Summary

Broad Exchange Access Drives Liquidity & Growth

Jeff: The surge in trading volume, with nearly half from PancakeSwap, reflects a strategic push to expand MERL’s availability across networks and marketplaces. Just like Coca-Cola succeeds by being everywhere, tokens gain credibility and volume by being listed broadly—on CEXs, DEXs, and especially perp platforms. Merlin started on our own chain, but real liquidity still lives on Ethereum, BNB Chain, and major perps like Binance, OKX, Bybit, and Hyperliquid. Listing on these is crucial for institutional interest and user access. Following Binance Alpha, over 10 platforms listed MERL, . The goal now is to get MERL on a broader market, the final major venue missing. Broad distribution isn’t just a tactic—it’s the foundation for serious adoption.

45% MERL Staking Launches Jeff: The six-month fixed-term staking option is set to go live before Friday, likely Wednesday or Thursday. It offers users a 45% APR, and for experienced participants—especially institutions—it enables a no-loss arbitrage strategy. By staking while shorting the token on platforms like Binance, participants can hedge against price drops and still collect rewards. This setup has already attracted institutional players, evidenced by large on-chain transfers aiming to capitalize on high-yield opportunities.

MBTC as the Core Pillar of Merlin Chain's BTCFi Vision Jeff: Yes, MBTC will be central to Merlin Chain’s long-term strategy because BTCFi remains deeply undervalued. While there’s $1–2 trillion worth of Bitcoin in existence, only a small fraction is currently utilized in DeFi. That’s rapidly changing—Bitcoin DeFi TVL has surged from ~$10M to $5–10B within a year, and could easily reach $10–20B next year. Even at a modest 2% APR, this represents $400M in potential annual yield.

Major ecosystems like Solana, Arbitrum, Base are actively working to integrate Bitcoin. Merlin has already bridged MBTC to Sui, with stablecoin trading pairs being formed with partners like OKX (xBTC), Binance (BTCB), and Coinbase (cbBTC). Institutions and governments are now exploring Bitcoin for yield generation, including sovereign wealth and pension funds. Partnerships are forming around BTC-backed stablecoins and yield farming protocols—including one launching in June—and MBTC will play a foundational role in enabling these new financial primitives.

Final Thoughts and Upcoming Updates for Merlin and BTCFi

Jeff: That pretty much sums up where we are right now. We expect some new updates soon, including clearer plans for the AI product we’ve been preparing. We’re also actively pursuing more exchange listings to expand reach. Regarding BTCFi, last year was filled with hype that led to overvaluation and skepticism as many jumped in prematurely. Now, BTCFi seems undervalued with less noise and more genuine progress happening quietly behind the scenes. This is the time to pay closer attention.

Potential Impact of Large Bitcoin Holders Adopting Wrapped BTC for Yield

Jeff: Absolutely, that kind of adoption is likely to happen. For instance, Liberty Fund already holds WBTC and is collaborating with Binance, indicating clear progress on the Bitcoin yield front. However, government involvement may face delays due to regulatory processes, so it will take some time.

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