Dual Staking

The infrastructure for sustainable BTCFi

Dual Staking is a cornerstone of b14g's strategy to transform Bitcoin into a productive financial asset and expand the BTCFi ecosystem.

Architecture

1. Users Stake Assets on b14g: Stakers deposit their native tokens and BTC into the b14g Merge Staking protocol.

2. Delegation to Operators: The staked assets are delegated to operators who handle validation services, ensuring the network’s security.

3. Operators Validate for BVS: Operators provide validation services to application protocols, also known as Bitcoin Validated Services (BVS). These BVS are secured by the economic strength of staked BTC and native tokens.

4. Reward Distribution: When BVS pay out rewards for the validation services, those rewards are split among Stakers, Operators, and b14g. This aligns incentives across all participants, ensuring everyone benefits as the network grows.

How Merge Staking Works for Protocols

1. Define Merge-Staking Model: Protocols customize their Merge Staking model—choosing which token pairs to merge, setting merge ratios, and defining yield tiers. This flexibility allows protocols to optimize their security posture and token economics.

2. Integrate Merge Staking: Protocols implement merge modules (e.g., staking reward logic, slashing conditions) on their platforms. This integration ensures a seamless staking experience while maintaining security and compliance with the protocol’s rules.

3. Track TVL Growth: As users participate in Merge Staking, protocols can monitor the Total Value Locked (TVL). A higher TVL indicates stronger security, greater liquidity, and increased confidence in the protocol’s long-term viability.

How Merge Restaking Works for Stakers

Stakers have three main ways to engage in Merge Staking:

1. Direct Staking: Users can directly (re)stake their BTC and native tokens at certain ratio on b14g platform to unlock highest staking yield tiers.

2. Proof of BTC lock transaction: Users who already stake BTC on existing BTC staking platforms (i.e., CoreDAO, Babylon) can restake it through b14g’s Merge Staking protocol using proof of transaction. This adds another layer of earnings, enhancing their overall yield potential.

3. Merge Marketplace: The Merge Marketplace helps lower capital barriers. For example, a BTC holder lacking native tokens can create a merge order, specifying reward-sharing ratios. Native token stakers can choose to merge with this order, enabling both parties to reach higher yield tiers without needing additional assets.