DeFi Technologies will launch a validator node on Core Chain and receive approximately
DeFi Technologies will launch a validator node on the Core Chain and receive approximately $100 million worth of Bitcoin (BTC) there. Toronto-based DeFi Technologies will receive rewards for validating transactions and signing rewards through its subsidiary Valor.
Staking is enabled by the Ethereum Virtual Machine consensus mechanism on the first layer of the BTC-powered blockchain. Olivier Rossy-Newton, CEO of DeFi Technologies, said:
“We are advancing our mission of connecting traditional finance with innovative blockchain technology (…) This approach provides our investors with unique exposure to yield and growth in the digital asset space.”
Stakers retain custody of their BTC for the duration of the lock and receive rewards in the form of CORE token, which is reinvested in the product. Staked CORE offers a bonus of 11.66%.
Security is maintained by distributing 50% of the BTC mining hashing power on the blockchain itself. Regardless of DeFi Technologies’ new stake, Core holds over 2,800 BTC.
DeFi Technologies and Core are already working together
This is the second stage of cooperation of organizations. On May 10, they launched the Valor Bitcoin Scking exchange-traded product on the Nordic Growth Market Exchange using the Swedish krona as the base currency.
Related: DeFi Technologies Subsidiary Valor Surpasses $274 Million in Assets Under Management
Valor ETP claims to be the first yielding BTC ETP product, offering exposure to BTC with a yield of 5.65% and a management fee of 1.9%. The partners also intend to launch a grassroots ETP program that will provide returns via BTC staking.
Valor offers exchange-traded products backed by 12 other coins, including Uniswap and Polkadot, as well as a 10-coin basket, Bitcoin Carbon Neutral (BTCN) and the STOXX Bitcoin Index Suisse Digital Asset Blue Chip have no management fees.
DeFi Technologies appears to be looking good with BTC pivot
The move is in line with DeFi Technologies’ recent trend of relying more on BTC. DeFi Technologies announced on June 10 that it had adopted bitcoin as its primary Treasury reserve asset and purchased 110 bitcoins as part of this strategy. This announcement caused the DeFi Technologies stock price to rise by 23%.
As of May 31, DeFi Technologies had a cash balance of $51 million and Valor had $607 million in assets under management (AUM). As of mid-March 2022, Valor’s assets under management stood at $274 million.
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