Core

Chip

Newton

DeFi

Bitcoin

DeFi Technologies will launch a validator node on Core Chain and stake almost $100 million in Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) on it. Toronto-based DeFi Technologies will receive rewards for validating transactions and staking rewards through its subsidiary Valour.&nbsp;
Staking is enabled by Core’s Ethereum Virtual Machine-compatible consensus mechanism on its layer-1, BTC-powered blockchain. DeFi Technologies CEO Olivier Roussy Newton <a href="https://www.newswire.ca/news-releases/defi-technologies-announces-launch-of-core-chain-validator-node-to-participate-in-network-consensus-and-staking-stakes-1-498-btc-844110055.html" target="_blank" rel="noopener noreferrer nofollow">said</a>:
<blockquote>
 “We are advancing our mission to bridge traditional finance with innovative blockchain technology […] This approach offers our investors unique exposure to yield and growth within the digital asset space."
</blockquote>
Stakers retain custody of their BTC throughout the lockup period and receive rewards in CORE token, which is reinvested in the product. Staked CORE provides a reward of 11.66%.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-06/06155830-3035-4b52-ae36-eb128be522dd.png" alt="" title="">
 <figcaption style="text-align: center;">Source: Core DAO
 </figcaption>
</figure>
Security is maintained by distributing 50% of BTC mining hash power to the blockchain itself. Not counting the new DeFi Technologies stake, Core has more than 2,800 BTC staked.
<h2 id="defi-technologies-and-core-are-already-working-together">DeFi Technologies and Core are already working together</h2>
This is the second step in the organizations’ collaboration. On May 10, they <a href="https://finance.yahoo.com/news/defi-technologies-subsidiary-valour-inc-113000740.html" target="_blank" rel="noopener noreferrer nofollow">launched</a> the Valour Bitcoin Staking exchange-traded product on the Nordic Growth Market exchange using the Swedish krona as the base currency.
Related: <a href="https://cointelegraph.com/news/defi-technologies-subsidiary-valour-surpasses-274-million-in-aum" rel="noopener noreferrer nofollow">DeFi Technologies subsidiary Valour surpasses $274 million in AUM</a>
Claiming to be the first yield-bearing BTC ETP, the Valour ETP offers BTC exposure with a 5.65% yield and 1.9% management fee. The partners also intend to launch a Core ETP that will offer yield through BTC staking.
Valour offers ETPs backed by 12 other coins, <a href="https://cointelegraph.com/news/valour-uniswap-exchange-traded-product-to-increase-uni-exposure" rel="noopener noreferrer nofollow">including Uniswap</a> <a href="https://cointelegraph.com/news/polkadot-etp-hits-swedish-stock-market" rel="noopener noreferrer nofollow">and Polkadot</a>, as well as a 10-coin basket, <a href="https://cointelegraph.com/news/european-stock-exchange-to-list-bitcoin-carbon-neutral-etp" rel="noopener noreferrer nofollow">Bitcoin Carbon Neutral (BTCN)</a> and the STOXX Bitcoin Suisse Digital Asset Blue Chip X Index. Some of their offering have no management fee.
<h2 id="defi-technologies-is-looking-plum-with-btc-pivot">DeFi Technologies is looking plum with BTC pivot</h2>
This decision <a href="https://cointelegraph.com/news/defi-technologies-adopts-bitcoin-treasury-strategy" rel="noopener noreferrer nofollow">aligns with DeFi Technologies’</a> recent pivot toward greater dependence on BTC. DeFi Technologies announced on June 10 that it had adopted BTC as its primary treasury reserve asset and purchased 110 BTC as part of that strategy. That announcement led to a 23% <a href="https://x.com/BitcoinMagazine/status/1800478187773899217" target="_blank" rel="noopener noreferrer nofollow">spike</a> in the DeFi Technologies share price.
As of May 31, DeFi Technologies had a cash balance of $51 million, and Valour had $607 million in assets under management (AUM). In mid-March 2022, Valour’s AUM stood at $274 million.
Magazine: <a href="https://cointelegraph.com/magazine/bitcoin-ogs-experts-how-to-protect-your-crypto/" rel="noopener noreferrer nofollow">How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in</a>

DeFi Technologies launches Core chain validator, stakes 1,498 Bitcoin

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Cointelegraph

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