On February 8th, the Bitcoin Layer 2 network Merlin Chain launched a total of six main network staking activities and announced the release of 20% of tokens for airdrops. With Bitcoin breaking through 51000 USDT after the new year, the enthusiasm for Layer 2 narratives remains unabated. As a popular BTC L2 leader project, how can you participate and maximize your returns? The author has compiled this nanny-level tutorial, which will guide you step by step on how to play with Merlin.

Project Introduction

Merlin Chain is a Bitcoin Layer 2 network that integrates key modules such as ZK-Rollup network, decentralized oracle network, and Bitcoin on-chain fraud proof. It is committed to empowering native assets, protocols, and application ecosystems on BTC Layer 1 through Layer 2, enabling innovation and amplifying asset potential on the Layer 2 network, making Bitcoin interesting again.

Merlin Chain has 24 institutions participating in its investment, including OKX Ventures, ABCDE, Foresight Ventures, Arkstream Capital, and others, making it a star-studded lineup. The team background is also very impressive, led by Bitmap Tech, the team behind the blue box that skyrocketed in value, with a total market value exceeding 500 million US dollars. From the interview with the founder Jeff, it can be seen that the team has been deeply involved in the Bitcoin ecosystem.

Token Allocation

MERL token total supply: 2,100,000,000

Launch price: 0.00004762 USDT

Merlin explicitly stated that 20% of the tokens will be used for staking activity airdrops, whereas the usual L2 airdrop ratio is 5%.

What are the ways to obtain Merlin tokens?

Currently, you can earn M points, which can be mapped and exchanged for tokens in the future.

The main way to earn points at the moment is to participate in the mainnet staking activity—Merlin's Seal.

The details can be divided into the following three types of interactions, which can be combined:

1. Staking BTC native assets: BTC, BRC-420 assets, BTC-20 assets;

2. Staking EVM assets: If you don't have BTC native assets, you can also earn exclusive staking rewards by depositing assets on the Ethereum mainnet or Arbitrum;

3. Provide Liquidity: Provide liquidity for Merlin Chain's native Dex — Merlin Swap.

For detailed point exchange values, please refer to the official announcement. The following explains the rules and tutorials for each interaction.

Staking Rules Explained

Stake BTC or assets on EVM to accumulate M points. The points can be exchanged for MERL tokens in the future, and staking rewards can be increased through teaming up.

For BTC and BRC-420 assets, you can stake them directly. For BRC-20 tokens like RATS, you need to first engrave and then transfer them. As for assets on Ethereum, you need to stake them through another official bridge link.

Important Notes:

1. Daily Settlement: M points earned from staking the previous day will be settled every day at 8 am Beijing time.

2. Timeline: Staking starts in February → Asset mapping support by the end of February → Points exchange to $MERL in March → Unlock in April, at which point you can retrieve your staked assets on Layer 1.

3. Staking does not affect token swap: Currently, staking your assets allows you to choose asset mapping on Layer 2 by the end of February, but unlocking on Layer 1 will have to wait until April.

Teaming Up: Increase Rewards

Teaming up allows you to earn more points and maximize your rewards.

1. A team consists of 5 members (1 captain + 4 members). The total staking value of the team determines how many points the captain and members can earn.

2. When pledging for the first time, you need to choose whether to create a team or join an existing team, and once chosen, it cannot be changed.

3. After pledging, users can choose to become a team leader or join an existing team. The team leader has the authority to invite team members.

Example: In the case of maximum calculation, if your team pledges assets worth 100 BTC and receives 10,000 Merlin coins, the team leader will receive a total of 10,120 Merlin coins.

For detailed bonus values, please refer to the official announcement.

Interaction 1: Pledging BTC Native Assets

1. Go to the official website: https://merlinchain.io/bridge/staking

2. Select the assets you want to pledge, and then confirm.

3. Team formation, choose to be a captain or a team member. If you are a team member, please enter the team invitation code.

4. Click on Staking and then sign to confirm. After the "Staking Successful" message pops up, it means that the staking is successful.

5. Note: BTC-20 tokens, such as RATS, need to be converted into inscriptions using wallets like Unisat before staking.

Interaction 2: Staking EVM Assets

The website for staking EVM assets and BTC assets are separate, currently supporting Ethereum mainnet and Arbitrum.

1. Go to the official website: https://merlinchain.io/bridge/staking

2. Click on "Switch Network" to Ethereum/Arb, and you will be redirected to another webpage: https://merlin.meson.fi/

3. Connect your wallet, choose ETH or Arbitrum, and select USDC/USDT/ETH for staking.

4. Choose whether you want to be a captain or a team member. If you're a team member, please enter the team invitation code!

5. Fox Wallet signature authorization, consuming ETH on the corresponding chain as Gas, usually around 0.7 USDT.

Interactive Three: Providing liquidity on Merlin Swap

Step 1: Obtain BTC on Merlin through cross-chain.

1. Go to the website: https://meson.fi/

2. Connect your wallet, choose the ARB chain, and exchange USDC for BTC on Merlin chain. It consumes ETH on ARB as GAS, approximately around 0.7 USDT.<

3. Usually within 2 minutes, cross-chain will be completed.

Step 2: Go to Merlin Swap for token exchange.

1. Go to the website: https://merlinswap.org/trade/swap

2. Exchange BTC for the token you want to add liquidity to, usually choose IUSD as stablecoins have less slippage.

3. Click Swap, and sign the wallet. Consuming BTC on Merlin chain as GAS, approximately around 0.5 USDT.<

Step 3: Provide liquidity on Merlin Swap.

1. Click on Pools, or go to the link: https://merlinswap.org/trade/pools

2. Select a trading pair pool to add liquidity, click Add Liquidity. Here, choose IUSD/WBTC, because I just exchanged BTC for IUSD, and there is some in my wallet.

3. Enter the amount of IUSD, click Approve. Wallet signature will be required. It will consume BTC as Gas on the Merlin chain, approximately around 0.7 USDT.

Conclusion

The above is the tutorial for this issue. The official team also emphasized that these are just appetizers, and more gameplay will be unlocked later.