Core: The L1 Blockchain Unlocking the Potential of Bitcoin (BTC) for the Future of Decentralized Finance (DeFi)

In the decentralized finance (BTCFi) ecosystem of Bitcoin, Core is an L1 blockchain driven by Bitcoin and compatible with EVM, where the security is maintained by

Core, a decentralized finance (DeFi) blockchain built on Bitcoin, recently unveiled the Fusion upgrade, introducing two pivotal products: Core Dual Staking and Core LstBTC. This upgrade marks a significant step in Core's mission to enhance the participation options for institutions within the BTCFi landscape.

At the heart of Core's innovation lies its unique Satoshi Plus consensus, which combines Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS). DPoW enables Bitcoin miners to allocate their hash power on the Bitcoin mainnet via syntax like OP_Return, delegating it to preferred validation nodes to earn CORE token rewards.

In this way, Core not only gains protection from Bitcoin miners but also supplements their earnings, especially crucial in the scenario of reduced Bitcoin block rewards, where Core's block rewards fill the post-halving reward gap.

On the other hand, the DPoS in Satoshi Plus consensus empowers CORE token holders to contribute to network security by delegating their CORE to validation nodes.

This enables participation in the election of these validators and earns CORE token rewards for securing the chain. The key to this mechanism is the "hybrid score," which selects the top 27 validators by calculating delegated hash and delegated shares, updated every 24 hours, ensuring the decentralization and stability of the network.

The third crucial component of Satoshi Plus consensus is non-custodial Bitcoin staking. Since its launch in April 2024, the delegated amount of Core blockchain validators has exceeded 9,000 Bitcoins.

This method centers around absolute time locks, a Bitcoin native feature that allows holders to lock their Bitcoins for a predefined period during which they cannot be spent.

When Bitcoins remain locked on the Bitcoin blockchain, stakers delegate these Bitcoins to elect Core validators, who secure Core and earn CORE token rewards. Through this process, Bitcoin holders receive daily CORE token rewards without relinquishing custody of their assets or incurring counterparty risk.

It is noteworthy that Core has a deep connection with the Bitcoin community, particularly with miners and Bitcoin holders. This distinguishes Core from other Bitcoin L2 or sidechain projects.

Over 75% of the global mining hash power supports the Core network through Delegated Proof of Work (DPoW), contributing hash power to on-chain validation nodes, thereby earning security rewards.

The zero-risk, non-asset transfer nature of non-custodial Bitcoin staking has led many large Bitcoin holders and institutions to trust Core's technology and delegate their Bitcoins to validation nodes, maintaining network security.

Unlike other Bitcoin projects, Core places greater emphasis on meeting Bitcoin holders' concerns regarding security and practical needs while providing yield opportunities.

Key Points of the Fusion Upgrade: Introduction of Dual Staking and LstBTC

With the approval of Bitcoin spot ETFs in January and the results of the U.S. elections in November, the cryptocurrency industry has once again reached a peak of attention.

The traditional financial sector has been seeking more flexible ways to participate in Bitcoin. Against this backdrop, on November 19, Core further launched the Fusion upgrade.

The Fusion upgrade enhances Core's BTCFi ecosystem through Core Dual Staking and LstBTC, providing institutions with more efficient participation pathways.

The introduction of the dual staking product aims to address the balance of community reward distribution issues that may arise when Bitcoin stakers lock their assets and receive CORE token rewards through validation nodes during the non-custodial staking process.

Especially in cases where institutions stake large amounts of Bitcoin, the released CORE rewards will correspondingly increase. Based on this context, to encourage Bitcoin stakers to re-stake the CORE rewards they receive back to validation nodes, dual staking enhances user participation willingness by offering higher annual percentage yields (APY).

Dual staking is divided into four tiers, with the yield ratio varying based on the ratio of staked CORE to Bitcoin. They are Base, which is 0 CORE:1 BTC; Boost, which is 1,000 CORE:1 BTC; Super, which is 3,000 CORE:1 BTC; and Satoshi, which is 8,000 CORE:1 BTC, with the latter tier receiving the highest yield ratio.

The foundation of dual staking is the further development of the non-custodial Bitcoin staking launched in April, allowing Bitcoin stakers to earn higher validation node rewards by staking CORE tokens; on the other hand, it also incentivizes CORE token holders to earn higher staking rewards by holding and staking small amounts of Bitcoin (with a minimum participation of 0.01 BTC) compared to single staking of CORE tokens.

Through this staking mechanism, Core has further strengthened its alignment with Bitcoin, allowing many institutions to explore Bitcoin yield possibilities while maintaining the security and sustainability of the Core blockchain.

Overall, the Fusion upgrade has a significant and favorable impact on the entire Core ecosystem. Before the Fusion upgrade, Delegated Proof of Work had already attracted over half of the total Bitcoin hash power.