DeFi Technologies will launch a validator node on Core Chain and stake almost $100 million in Bitcoin (BTC) on it. Toronto-based DeFi Technologies will receive rewards for validating transactions and staking rewards through its subsidiary Valour.
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 said:
“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."
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%.
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.
DeFi Technologies and Core are already working together
This is the second step in the organizations’ collaboration. On May 10, they launched the Valour Bitcoin Staking exchange-traded product on the Nordic Growth Market exchange using the Swedish krona as the base currency.
Related: DeFi Technologies subsidiary Valour surpasses $274 million in AUM
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, 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 offering have no management fee.
DeFi Technologies is looking plum with BTC pivot
This decision aligns with DeFi Technologies’ 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% spike 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.
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