As a seasoned crypto investor with a decade of experience under my belt, I find the recent development between BitGo and Core DAO particularly exciting. As someone who has weathered multiple bull and bear markets, I can attest to the importance of diversifying one’s portfolio and exploring new opportunities for yield generation.
The custodial service for cryptocurrencies, BitGo, is broadening income possibilities by incorporating high-end Bitcoin staking using the multi-layered blockchain platform, Core DAO.
Through a recent announcement on December 9th, it was revealed that BitGo is among the pioneers providing institutional investors with the opportunity to participate in dual staking provided by Core, thereby allowing them to generate increasing returns in Bitcoin (BTC) as yields.
Core’s staking systems are engineered to enable Bitcoin owners to maintain control over their possessions, thereby eliminating the potential risks associated with third parties.
According to BitGo CEO Mike Belshe, the partnership between BitGo and Core emphasizes our dedication towards broadening the avenues for institutional clients to safely earn returns on their Bitcoin assets.
Bitcoin staking versus dual staking
Staking cryptocurrencies involves keeping your digital currency in a designated wallet to generate passive income through the process of securing the blockchain network, essentially rewarding you for holding onto your coins.
As an analyst, I find myself frequently exploring the topic of crypto staking, particularly on blockchains that support it, such as Ethereum, which operates under the proof-of-stake (PoS) consensus mechanism. In contrast, Bitcoin, which uses a proof-of-work (PoW) system, does not natively support staking. However, I’ve come across several methods that enable users to indirectly stake their Bitcoin holdings.
As per HashKey’s explanation, there are at least four ways to stake Bitcoin:
Restaking Bitcoin involves a Bitcoin owner depositing their cryptocurrency with an intermediate protocol. This protocol, in turn, uses the deposited Bitcoin for staking with external client chains. The objective is to generate returns by earning rewards derived from the activities taking place on these client chains.
Core’s non-custodial Bitcoin staking involves users securing the Core blockchain by locking their Bitcoins on the Bitcoin blockchain, which rewards them with Core (CORE) tokens. Additionally, Core’s dual staking mechanism offers increased Bitcoin staking rewards for those who also hold and stake CORE tokens.
Dual staking on BitGo with Core
Core DAO’s founding contributor Rich Rines explained to CryptoMoon that with dual staking, we’ve taken things a step further. Now, you can use your Bitcoin in a way that not only keeps it working but also offers better rewards compared to some DeFi opportunities within the Bitcoin ecosystem.
Through Core’s twin staking system, BitGo now enables its institutional customers to earn additional Bitcoin rewards from their staking activities.
As a crypto investor, I appreciate the potential of timelocking my Bitcoin within BitGo’s trusted custody platform and directly staking CORE tokens. This setup allows institutions like me to gain access to scalable, tiered returns without having to worry about any slashing, credit, counterparty, or smart contract risks affecting my initial investments.
Additional reporting by Ezra Reguerra.
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2024-12-10 13:14