Bitcoin

coreDAO

<p>With the launch of LstBTC in the CoreDAO ecosystem, Bitcoin holders now have a new and optimized way to engage in decentralized finance (DeFi). To understand the differences between coreBTC and LstBTC, exploring what each asset brings and how users can benefit from the latter is helpful.</p><h3 id="corebtc-the-foundation-of-core-s-btcfi-ecosystem">coreBTC: The Foundation of Core’s BTCfi Ecosystem</h3><p>coreBTC was the first Core-native Bitcoin representation that allowed Bitcoin holders to carry out transactions within Core securely and decentralized. Designed to maintain a 1:1 peg with Bitcoin, coreBTC is backed by Bitcoin held in decentralized Lockers, ensuring that each coreBTC retains Bitcoin’s value while integrating with Core’s DeFi tools.</p><p><strong>Key benefits of coreBTC include:</strong></p><p>1. Enhanced Liquidity and Usability: coreBTC holders can lend, borrow, and trade within Core, unlocking liquidity without selling Bitcoin.</p><p>2. Decentralization and Security: coreBTC relies on a decentralized network of Lockers, reducing dependency on central authorities.</p><p>3. Bitcoin Integrity: coreBTC preserves Bitcoin&#39;s core properties without transferring assets to other blockchains.</p><h3 id="lstbtc-introducing-yield-and-flexibility">LstBTC: Introducing Yield and Flexibility</h3><p>With the introduction of LstBTC, Core users gain access to a yield-bearing Bitcoin asset that’s also more accessible. Unlike coreBTC, LstBTC allows users to earn returns through staking while participating in DeFi, providing a compelling option for both new and seasoned enthusiasts.</p><p><strong>LstBTC benefits include:</strong></p><p>1. Yield and Liquidity: LstBTC holders can earn staking rewards while enjoying greater liquidity within the BTCfi ecosystem.</p><p>2. Lower Capital Requirements: LstBTC is more accessible, opening DeFi participation to a broader user base.</p><p>3. Integration: For builders and users alike, LstBTC’s seamless integration minimizes liquidity fragmentation, creating a more cohesive experience.</p><h3 id="why-transition-to-lstbtc">Why Transition to LstBTC?</h3><p>While coreBTC remains valuable, LstBTC offers added advantages for those seeking yield and flexibility. Users can redeem coreBTC and convert it to LstBTC, benefiting from the staking rewards and enhanced utility within Core’s growing DeFi applications.</p><h3 id="how-to-get-started">How to Get Started</h3><p>1. Redeem coreBTC: Redeem coreBTC holdings and consider converting them to LstBTC.</p><p>2. Explore Core’s Ecosystem: Use LstBTC in DeFi applications within Core for staking, lending, and trading.</p><p>3. Monitor Rewards: Track staking yields and liquidity options, allowing LstBTC holders to maximize their DeFi experience.</p><p>The shift to LstBTC represents a significant milestone in Core’s BTCfi evolution, providing yield and liquidity that support individual and ecosystem growth.</p>

Understanding coreBTC and LstBTC: Bitcoin in Core’s DeFi Ecosystem

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