blockchainreporter.net
Core DAO, an EVM-compatible chain powered by Bitcoin to offer Bitcoin’s non-custodial staking, has announced a new development. As per the company, it has upgraded its coreBTC token with a noteworthy enhancement by permitting lockers to utilize several assets for collateral. Apart from the CORE coin, the initial supported asset takes into account stCORE (a liquid staking coin).
Say hello to an upgraded experience with coreBTC🔶
— Core DAO 🔶 (@Coredao_Org) July 10, 2024
In addition to the CORE token, the liquid staking token stCORE can now be used as collateral support for coreBTC. Productive collateral, since it generates yield while locked!
But there's more to come in order to scale… https://t.co/p1M8HA8Xpv
Core DAO Supports Multi-Asset Collateral for coreBTC with the New ‘stCORE’
The new feature lets lockers generate yield with stCORE by using it in the form of collateral. In this way, they can transform it into a constructive asset. The incorporation of stCORE reportedly decreases the hazard concerning collateral liquidation. This also enables lockers to likely manage additional Bitcoin with the respective collateral with time.
Formerly, when lockers utilized the CORE token as collateral, it witnessed a sustained blockage and unproductiveness without any yield. In addition to this, the value of the collateral could also fluctuate in the former setting. This could potentially enhance the hazard of collateral loss and the incapability concerning the maintenance of the BTC positions. On the other hand, the latest development offers several new benefits and features to facilitate the users.
The New Development Offers Multi-Asset Collateral, Yield Generation, and Minimized Liquidation Risk
Multi-asset collateral allows the utilization of stCORE tokens alongside the CORE coin as collateral. This new advancement reportedly diversifies the asset base along with an improvement in stability. Lockers can get yield on the stCORE tokens while using it as collateral. This will turn formerly unproductive collateral into a fruitful asset.
Moreover, the minimized liquidation risk includes the appreciation of the stCORE’s value over time. With this, the collateral liquidation risk decreases to offer more financial security. Improved Bitcoin management also lies among the latest features, letting lockers manage additional Bitcoin with the same collateral amount. The inclusion of more collateral types such as stCORE offers enhancement addressing the scalability requirements of coreBTC.
With the support for more collateral types, the platform’s system gets more flexibility and inclusivity for a wider locker range. This upgrade lets lockers diversify assets, offering more stability against price fluctuations apart from lowering the liquidation risk. The multi-collateral options play a significant role in the long-term resilience and scalability of coreBTC. Diversification assists in minimizing hazards dealing with holding one collateral type.