Unlocking the DeFi application scenarios of BTC, how to play with the recently popular Corn?

Author: CryptoLeo, Odaily Planet Daily

Recently, the Ethereum L2 network Corn announced the completion of a $6.7 million financing round, led by Polychain Capital, with participation from Binance Labs, Framework Ventures, OKX Ventures, HTX Ventures, and Relayer Capital.

The reason this protocol has attracted investment from many well-known VCs is particularly noteworthy: the Corn network uses a tokenized version of Bitcoin (BTCN) as the network's gas fees and economic incentives.

Concept: Mining BTC Gems in DeFi

With the approval of the 2024 BTC ETF, coupled with the rotation of BTC ecosystem L2s, runes, and inscriptions, the BTC ecosystem is witnessing a rise. However, the actual use cases of BTC in DeFi remain limited. Many wrapped versions of BTC have emerged in the market, but currently, BTC in DeFi resembles holding a mine without the matching technology and machinery to extract and process it. Corresponding solutions for bridging and custody are still not mature enough, and an asset class that once had a market cap exceeding silver still lacks use cases in DeFi. With the aim of exploring greater application scenarios for BTC, the founders proposed the concept of Corn.

Corn co-founder Spada₿oom has stated that creating a more prosperous crypto ecosystem must involve BTC's participation, and the only place capable of supporting billions of dollars in liquidity is ETH L2. This is why Corn is an ETH L2 network that supports BTC. As a seasoned DeFi practitioner, Spada₿oom understands that the best way to attract other applications and retain them is through the Curve veCRV framework. Unlike BTC L2, the combination of ETH L2 and the veCRV framework theoretically better releases BTC's application scenarios in DeFi.

The gas token for Corn is BTCN (a wrapped version of BTC), and the reasons for BTCN's immense potential are as follows:

• Recently, Coinbase announced the launch of a cbBTC version of BTC and stated that it will build a large-scale BTC economy on Base, leading to more use cases for wrapped versions of BTC;
• The emergence of many permissionless bridging protocols;
• Custody protocols offering more services to clients, such as assets like wBTC.

Framework: BTC-Supported Circular Yield Circle

Below, Odaily Planet Daily will briefly introduce the Corn protocol:

According to its official website, the Corn protocol brands itself as a "super yield network," with its yields composed of two types of tokens:

• BTCN (generated through network transaction fees) ------ The gas payment method for the Corn network, also a hybrid tokenized version of BTC, similar to WBTC, pegged 1:1 to native BTC. Its characteristics include multiple ways to mint, such as through custodians, smart contracts (trading platforms), and bridging protocols. Users can choose how to store their native BTC.
• CORN (natively issued network token) ------ The native governance token of the Corn network. The founders and builders of Corn are seasoned DeFi practitioners who understand the importance of application, liquidity, and LP yields in DeFi. Inspired by Curve's veToken model, users can stake their tokens as veTokens to increase APR and vote on the release of governance tokens.

Users can lock specified assets through the App to earn popCORN, CORN, and BTCN. Each popCORN represents one vote, allowing holders to vote on whether to release CORN and BTCN tokens to specific applications or to increase yields through bribery markets. Additionally, users can choose to delegate CORN to earn extra yields.

In summary, assets like BTC support the circular flow and yield applications of tokens like veCORN and BTCN, bringing not only yields to users but also better liquidity, which promotes the application of its gas token BTCN.

Luxurious Team and Partners

In addition to receiving investment from numerous VCs, Corn also boasts a luxurious team and supporters. As mentioned earlier, the founders of Corn are experienced DeFi practitioners, including former Badger co-founder Spada₿oom (Chris Spadafora) and EIP-6968 author zak.eth (Zachary Cole). They have participated in projects such as Badger, Code 4 rena, Slingshot, and 0x Bow.

Moreover, the birth of Corn is also supported by some industry OGs, including CryptoKitties founder Udi | BIP-420, Polygon co-founder Sandeep, Berachain co-founder Smokey The Bera, and L0 co-founder Bryan Pellegrino.

Airdrop Mechanics

Today, Corn's official website has also updated its interface, allowing eligible users to earn Kernels (points). A Kernel represents a proportional share in the CORN airdrop (Kernel is not a token, just a type of points, and Corn's official statement indicates that there will be no KERNEL token, so users should be wary of scams).

The airdrop is divided into three parts: early DeFi user airdrop, Galxe points airdrop, and deposit earning airdrop.

Early DeFi User Airdrop

The eligibility for the early user airdrop is based on users' past interactions with DeFi protocols on Bitcoin and Ethereum, with the snapshot time for this category of airdrop being: July 13, 2024, 4:20 AM (Beijing time), covering over 1 million addresses. The following are the eligible interacting protocols and asset categories:

EVM Wallet Eligibility

• Maker or Spark Protocol ------ Users who held at least 0.01 sDAI for at least three months within the year prior to the snapshot, or users who borrowed against WBTC on Spark;
• Ethena ------ Holders of USDe who staked SUSDe;
• ether.fi ------ Users who held at least 0.01 eETH or weETH for at least two months within the six months prior to the snapshot;
• Kelp ------ Holders of rsETH on Ethereum Mainnet and Arbitrum or the top 500 LP providers;
• Pendle ------ Users who traded on the Pendle protocol or provided Silo-related assets within the year prior to the snapshot, or staked PENDLE as vePENDLE;
• Galxe ------ Users who staked at least 300 GAL after the GAL token launch;
• WBTC ------ Users who held at least 1 WBTC in the year prior to the snapshot;
• Arbitrum ------ Users who used the official bridge to transfer assets from the mainnet to Arbitrum in the year prior to the snapshot;

BTC Wallet Eligibility

• Babylon ------ Users who participated in the Babylon staking testnets Testnet-3 and Testnet-4;
• Thorchain ------ Users who swapped at least $100 of native BTC or provided LP on Thorchain in the year prior to the snapshot.

The official details regarding the specific Kernel rewards for early DeFi users have not been disclosed.

Galxe Points Airdrop

The interaction rules for Corn on Galxe are: 1 Point = 1 Kernel.

Currently, Corn has launched 2 galaxy missions on Galxe. The first galaxy mission can be referenced here: A Step-by-Step Guide to Interacting with the Five Major Projects Invested by Binance Labs in August. This mission has already ended. The second mission is similar to the first, also allowing users to earn points by sharing and completing certain tasks, and there is currently no specified deadline, providing ample time to complete the task.

Deposit Earning Airdrop

After logging into the Corn official website, click Deposit (if the wallet is not eligible, an invitation code is required). Currently, the application supports deposits of 7 types of tokens: WBTC, weETH, rsETH, DAI, sDAI, USDC, USDe. The Corn official Docs also indicate support for WETH, but this option is currently not available in the App. Additionally, certain token deposits can earn Kernel multipliers, as follows:

• WBTC deposits are minted as BTCN, yielding a 2x points increase;
• DAI, sDAI, and USDC deposits are converted to sDAI, yielding a 1.25x points increase;
• weETH deposits yield a 1.25x points increase.

The Kernel points rule is: Users earn 1 Kernel for every $1 deposited (every 210 minutes), and all deposited assets can be withdrawn at any time without incurring any penalties or fees. If your wallet does not belong to early DeFi users, you must use an invitation code to officially participate in the deposit task. Here are the recommended invitation links:

• https://usecorn.com/app?code=3r8j-ebf3
• https://usecorn.com/app?code=9epr-4rb4
• https://usecorn.com/app?code=bh6h-y8b4
• https://usecorn.com/app?code=5apb-f4c7
• https://usecorn.com/app?code=j4em-ppce
• https://usecorn.com/app?code=8gjn-rfy8
• https://usecorn.com/app?code=k8ba-9yc8
• https://usecorn.com/app?code=jg73-fhyt
• https://usecorn.com/app?code=64b9-nr47
• https://usecorn.com/app?code=ky8k-9y79
• https://usecorn.com/app?code=x6b4-48j4

From the initial 3,000 followers on Corn's social media to now 110,000 followers in just three days, more and more people are beginning to anticipate more application scenarios for BTC.

Although there are currently some discrepancies between Corn and its Docs' vision, as Spada₿oom stated: "We are different from projects committed to expanding BTC L2. As technology matures, the design of BTCN can allow users to mint on any protocol, bridge, smart contract, or custody." The Corn model of "veToken + BTC" unlocking the maximum application scenarios for BTC in DeFi is not impossible.

Note: There are many fake invitation links on social media currently; please be cautious to prevent asset loss.