DeFi Technologies is set to launch a validator node on Core Chain and stake nearly $100 million in Bitcoin (BTC) on the platform. The Toronto-based company will earn rewards for validating transactions and staking through its subsidiary Valour.
Staking is made possible by Core’s Ethereum Virtual Machine-compatible consensus mechanism on its layer-1, BTC-powered blockchain. DeFi Technologies CEO Olivier Roussy Newton explained that stakers will maintain custody of their BTC during the lockup period and receive rewards in CORE tokens, which are reinvested in the product. Staked CORE tokens offer a reward of 11.66%.
Security is ensured by allocating 50% of BTC mining hash power to the blockchain itself. Excluding the new stake by DeFi Technologies, Core already has over 2,800 BTC staked.
DeFi Technologies and Core have a history of collaboration. This latest move is the second phase of their partnership. They previously launched the Valour Bitcoin Staking exchange-traded product on the Nordic Growth Market exchange with the Swedish krona as the base currency.
The Valour ETP is touted as the first yield-bearing BTC ETP, providing exposure to BTC with a 5.65% yield and a 1.9% management fee. The partners also plan to introduce a Core ETP that will offer yield through BTC staking.
Valour offers ETPs backed by 12 other coins, including Uniswap and Polkadot, as well as a 10-coin basket, Bitcoin Carbon Neutral (BTCN), and the STOXX Bitcoin Suisse Digital Asset Blue Chip X Index. Some of their offerings come with no management fee.
DeFi Technologies’ strategic shift towards BTC as its primary treasury reserve asset is paying off. The company recently announced the purchase of 110 BTC, leading to a 23% increase in its share price. As of May 31, DeFi Technologies had a cash balance of $51 million, while Valour boasted $607 million in assets under management. In March 2022, Valour’s AUM was at $274 million.
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