Below is the full speech, organized based on the on-site recording.

Before 2023, the impression of Bitcoin in people's minds has always been a digital gold used for value storage, and there were no creators creating new concepts and applications around Bitcoin. However, after the mid-23 Ordinals craze, more and more people started creating NFT-related content on the Bitcoin network, issuing assets like BRC-20, BRC-420, ORC-20, and then Atomicals, Runes also entered everyone's field of vision. People gradually discovered that there are many things that can be done on the Bitcoin network, heard more and more voices, and started discussing the scalability and re-staking of the Bitcoin network.

Subsequently, activities such as IDO and fair launches brought Bitcoin assets to Layer2. Since February of this year, Merlin has been preparing for Layer2-related matters, and has also heard many voices saying that Bitcoin Layer2 is not practical, it is a scam, and so on. But in fact, there are now many Bitcoin Layer2 solutions, and there are many supporters and creators in our industry, all of whom are using EVM and similar Bridge technologies. My view is that users have a strong demand for Bitcoin Layer2, and they hope to trade Bitcoin ecosystem assets at faster speeds and lower costs. Merlin wants to bring new possibilities to the entire ecosystem and empower Layer1 assets, that is, if you hold assets like Runes, BRC-20, NFT on Layer1, what Merlin wants to do is to enable these assets to play a unique value in DeFi, GameFi, SocialFi, and other fields.

Merlin’s Phantom Token Swap

We have brought many new ideas to the entire Bitcoin ecosystem. Merlin’s Phantom will officially launch this month, and then we can freely exchange NFTs with tokens, Runes with BRC-20, and various other assets. We will define various permissionless asset swaps through standardized contracts. For example, a standard that exchanges NFTs for tokens can be defined, and then this token can be freely staked to become an LP to earn profits. I can also exchange 10,000 MERL for NFTs and hold them. Of course, these assets can also be exchanged back at any time. Therefore, although assets are born on Layer1, Layer2 is where these assets can freely trade, exchange, and operate. In fact, Layer2 has infinite possibilities.

Merlin Yields: Introducing Low-Risk Returns to Bitcoin Holdings

This chart shows the relevant data of Merlin BTC Bridge. In the past month, a total of 163,400 bitcoins have crossed in and out of Merlin, totaling $10.167 billion. Looking at all cross-chain bridges and Bitcoin trading records on exchanges like OKX, Binance, I believe that no platform can surpass this number. Our trading volume exceeds 10 million times, with millions of users, and our cross-chain bridge runs smoothly, without any errors during the crossing process, which is the fundamental guarantee for us to introduce Bitcoin into the EVM ecosystem.

Now, suppose you hold a Bitcoin on Layer1 or Binance, then by the end of the year, you will still have only one Bitcoin in your address. But if you hold a Merlin Bitcoin, what will the balance be at the end of the year? I mean unless the Bridge stops working properly, or other security issues arise, the BTC in your hands will exceed 1 due to the additional value of the Merlin network.

First of all, for staking, we have cooperated with many projects and will also open our PoS system. Therefore, if you hold a Merlin BTC and participate in staking, after the lock-up period ends, not only will the staked bitcoins receive additional income, you will also receive additional network incentives and token airdrops from all cooperating projects. For Merlin's Seal Bitcoin stakers, they have received MERL airdrops with a maximum APY of 120%.

Secondly, if you stake Merlin Bitcoin in projects like StakeStone or Solv, you will undoubtedly receive tokens from these projects, and you will also be able to earn additional staking points and project tokens through Babylon. In addition, you will also receive fund delegation rewards through agents like Antalpha, that is, you will get a 50% BTC APY from CEX like Binance.

Finally, staking Merlin BTC for SolvBTC exchange has many applications. We have cooperated with 10 Ethereum Layer2 networks and will soon announce cooperation with networks like Linea, ZKLink, Arbitrum, etc. You can also earn re-staking rewards by introducing SolvBTC to other Layer2 networks. Since other ecosystems urgently need Bitcoin ecosystem users and trading volume, but they have no choice in liquidity acquisition, cooperation with Ethereum Layer2 is the natural choice for the ecosystem.

I believe all the above returns are very important for Bitcoin, Bitcoin should not just be held, what Merlin is doing now is introducing low-risk returns to Bitcoin holdings. In conclusion, I think all the innovations happening on Bitcoin Layer1 and Layer2 are very important, and I am pleased to see so many creators in the ecosystem working hard together. We are all peers who are bringing this fun into the Bitcoin ecosystem.