DeFi Technologies CEO discusses the pioneering Bitcoin yield-bearing ETP in the industry.
Crypto.news recently interviewed Olivier Roussy Newton, CEO of DeFi Technologies, to discuss the Valour Bitcoin Staking ETP, which is the first product to combine Bitcoin with yield-bearing staking mechanisms.
Traditionally, Bitcoin holders have not been able to participate in staking opportunities like holders of other cryptocurrencies due to Bitcoin’s reliance on the Proof-of-Work (PoW) consensus mechanism. PoW requires miners to solve complex mathematical puzzles to validate transactions and secure the network, which consumes significant computational power and electricity.
On the other hand, Proof-of-Stake (PoS) allows users to validate transactions based on the number of coins they hold and stake as collateral. This approach is more energy-efficient and accessible, as participants can earn yields simply by holding and staking their tokens.
Bitcoin’s PoW system rewards miners with newly minted coins and transaction fees, but this reward generation is limited to those who can afford the expenses associated with mining. As a result, Bitcoin holders rely on price appreciation for returns and miss out on the yield-generation mechanisms available in PoS networks.
However, recent innovations are addressing this gap by introducing ways to stake Bitcoin. Core Chain, for example, enables Bitcoin staking through a protocol called Satoshi Plus, which allows Bitcoin holders to earn yields by staking their BTC in a non-custodial manner. This means they maintain control over their assets while participating in network operations to earn rewards.
The Valour Bitcoin Staking ETP takes advantage of this technological advancement, offering a secure and regulated avenue for investors to earn staking rewards directly through Bitcoin. It allows BTC holders to earn yield without taking on new risk assumptions.
Compared to other yield-generating platforms like Celsius and BlockFi, the Valour Bitcoin Staking ETP stands out for several reasons. Valour is a regulated, publicly traded company with a different profile compared to these entities. The source of the yield in Valour’s product is clear, as it comes from Core Chain’s Non-Custodial BTC Staking. This means there is no additional counterparty risk, and the only counterparty risk comes from Valour itself.
Bitcoin miners play a role in the Core Chain network by delegating their hash power to elect validators. They earn CORE rewards for their participation, which further incentivizes them to secure the Bitcoin network. Their involvement in Core Chain decentralizes validator election and aligns Core Chain with the Bitcoin blockchain.
The “Satoshi Plus” consensus mechanism enhances the traditional Bitcoin Proof of Work by rewarding Bitcoin miners for delegating their hash power and bringing native yield to Bitcoin for the first time. This mechanism adds value to Bitcoin stakeholders without compromising on any of Bitcoin’s design principles.
In summary, the Valour Bitcoin Staking ETP provides an innovative way for Bitcoin holders to earn staking rewards, leveraging Core Chain’s Non-Custodial BTC Staking protocol. This product offers a secure and regulated avenue for investors to participate in staking without taking on additional risks.
