Overview of the CORN Project

CORN is a unique Ethereum Layer 2 blockchain project that uses Bitcoin (BTC) rather than Ether (ETH) for transaction fees and security, making it the first Bitcoin-centric super yield network.

CORN has introduced BTCN, a hybrid tokenized form of Bitcoin used for Gas fees. This approach expands Bitcoin’s use in DeFi with the Super Yield Farming mechanism and the Crop Circle system, integrating Bitcoin more seamlessly into Ethereum while boosting BTC liquidity.

CORN stands out in a crowded Layer 2 landscape, offering users an innovative platform combining Bitcoin’s strengths with Ethereum’s features.

CORN’s Team and Funding

In August 2024, CORN raised $6.7 million in seed funding, led by Polychain Capital. Binance Labs and Framework Ventures also participated, showing the project’s strong industry support.

CORN’s team is made up of seasoned DeFi professionals who have worked on notable projects such as Badger, Code4rena, Slingshot, and 0xBow. This strong foundation sets CORN apart in the competitive DeFi space.

Following the seed funding, HTX Ventures, the global investment arm of Huobi HTX, made a strategic investment in CORN. Known for supporting cutting-edge blockchain projects, HTX Ventures’ investment reflects the high market interest in CORN’s innovative Bitcoin yield network.

CORN’s Technology and Mechanisms

Bitcoin-Based Layer 2 Network

CORN is an innovative Ethereum Layer 2 network centered around Bitcoin. It connects the Bitcoin and Ethereum ecosystems, offering new use cases for Bitcoin holders while leveraging Ethereum’s scalability and security to lower transaction costs and improve transaction speed.

Super Yield Network: VeCHAIN

CORN has adopted Curve Finance’s veTokenomics model to build a unique Crop Circle mechanism that incentivizes users, liquidity providers (LPs), and developers through yield farming and veTokenomics. The network uses tokenized Bitcoin (BTCN) as a fuel token and economic incentive, aiming to unlock Bitcoin’s liquidity potential through its super yield mechanism, building a long-term BTCN DeFi ecosystem.

The rewards consist of two main tokens:

• $BTCN (Fuel Fee, Generated by Network Transactions): $BTCN is the first tokenized version of Bitcoin pegged 1:1 with native Bitcoin, similar to WBTC, and it serves as the Gas fee in the Corn network. Supported by multiple trusted custodians, smart contracts, and cross-chain protocols, $BTCN can be minted through various means. This design improves Bitcoin’s transparency and security and adapts to the evolving Bitcoin storage and cross-chain technology. Users can flexibly choose how to store their BTC, enhancing convenience and options.
• $CORN (Native Token): The governance token of the Corn network, utilizing a veToken model similar to Curve’s. Users can stake $CORN to support projects aligned with the core values of Bitcoin and Corn. Staking preserves network integrity and allows users to earn rewards and participate in decision-making, affecting $CORN reward allocation. This system encourages long-term holding and active participation, fostering a growing and thriving ecosystem.

Source: blog.usecorn.com

CORN’s Points and Incentives: Kernels

Kernels are points, not tokens. Corn has made it clear that there will be no KERNEL token, so users should beware of scams. After joining Corn for early access, users can earn Kernel points by depositing assets, completing Galxe tasks, and inviting friends.

3.1 Point Structure

Kernels are calculated as follows:

1）Ineligible account points = Invite points + Galxe task points + Staking points

2）Eligible account points = Invite points + Galxe task points + Staking points + Eligibility reward (4.8 million points)

3.2 Eligibility Criteria

• Eligible accounts exceeding one million and meeting any of the conditions in the table below will receive a fixed reward of 4.8 million points.
• Table for eligible accounts selection rules：

Source: x

3.3 Ways to Earn Kernel Points

1. Depositing Assets: Earn Kernels by depositing specific assets into Corn vaults. Every 210 minutes, users earn 1 Kernel for every $1 deposited. Deposits can be withdrawn anytime without penalties.

Eligible assets include: wBTC, wETH, rsETH, USDC, DAI, sDAI, USDe.

Some vaults offer additional incentives, called Juice, which doubles the Kernel earning rate.

Vaults eligible for Juice include:

1.25x multiplier:

• CORN-sDAI vault (DAI, USDC, sDAI deposits convert to sDAI);
• CORN-weETH vault

1.5x multiplier:

• CORN-eBTC vault;
• CORN-LBTC vault

2x multiplier:

• CORN-BTCN vault (WBTC deposits convert to BTCN);
• LOMBARD-LBTCv (LBTC or WBTC deposits convert to BTCN)

3x multiplier:

• PENDLE-solvBTC.BBN vault;
• PENDLE-LBTC vault;
• PENDLE-uniBTC vault;
• PENDLE-pumpBTC vault

Juice increases Kernel yields by depositing assets into applications in the Corn ecosystem or from its partners. The more Juice, the higher the Kernel-per-hour (KPH) rate. Depositing into Pendle offers the highest 3x Kernel yield, and users can earn points from other partner projects.

1. Completing Tasks: Earn Kernels by completing Galxe tasks. On Galxe’s Corn page, 1 Point = 1 Kernel. Currently, two Galaxy tasks are available; one has ended, and the other is ongoing. Be sure to match your Galxe address with Corn’s to avoid point loss.
2. Invitation Rewards: Eligible users can generate a one-time invite code, and Kernels will accumulate throughout the airdrop event.

Kernel Accumulation Levels:

1. 20% of Kernels earned by your direct invitees
2. 12% of Kernels earned by people invited by your invitees
3. 6% of Kernels earned by the second-level invitees
4. 3% of Kernels earned by the third-level invitees

According to Corn’s official information, the value and use of Kernels may expand further in the next phase, offering more potential rewards and opportunities for participants.

Practical Uses and Ecosystem of CORN

BTCFi: Bitcoin Re-Staking for Maximizing Returns

CORN’s main application lies in the DeFi space. Using a ve-token model similar to Curve’s and combining it with a point system, CORN forms mutually beneficial partnerships with DeFi protocols like Pendle, seizing opportunities in the BTCFi wave. This approach helps Bitcoin holders maximize their returns while providing value to the CORN project and BTCN token holders.

CORN’s LBTC is an essential part of BTCFi collaborations. Backed by Lombard, LBTC allows liquidity staking on Babylon’s Bitcoin re-staking infrastructure. Users who deposit LBTC into CORN support CORN’s early access programs and earn Kernels, which can be exchanged for $CORN airdrops.

Besides CORN LBTC, other re-staked Bitcoin products, such as EtherFi’s eBTC, Bedrock’s uniBTC, Solv’s solvBTC, and PumpBTC, have also been launched on the Pendle platform.

Source: X

CORN Partners with Babylon, Lombard, Pendle, and Solv to Launch Bitcoin LST

In September 2024, CORN announced a major integration, allowing Lombard’s Liquid Staking Token $LBTC to be deposited into Pendle’s Corn Pool, offering the highest yields from both Lombard and CORN (each with a 3x multiplier), as well as earning Lux, Lombard’s native points, and Kernels. Below is a brief introduction to CORN’s key partners in this ecosystem:

• Babylon: A protocol providing Bitcoin timestamps and staking services, using BTC to back up PoS chain data and ensure decentralized security. It powers Lombard’s infrastructure, allowing trustless and self-custody staking directly on the Bitcoin blockchain without needing to bridge or wrap BTC. This guarantees maximum security and control for Bitcoin holders.
• Lombard: Built on Babylon, Lombard introduces LBTC, a liquid staking token that brings Bitcoin into the DeFi world. LBTC enables Bitcoin holders to earn yields while maintaining liquidity. LBTC can also be redeemed 1:1 for BTC, ensuring the stability of its value.
• Pendle: A multi-chain yield tokenization protocol that allows users to manage yield strategies by tokenizing yield-bearing assets. Pendle splits these assets into principal tokens (PT) and yield tokens (YT), enabling users to trade them and implement strategies like fixed income or leverage. Pendle brings traditional finance strategies into DeFi.

CORN Yield Integration

CORN has integrated with partners like Pendle and Babylon to bring more yield-boosting opportunities. These partnerships allow participants to earn Kernels and other partner points.

Pendle Liquidity Pools

Investors can enter and exit the pools at market prices, providing flexibility. Pendle minimizes impermanent loss (IL) by structuring each pool with underlying assets and PT (Principal Tokens, redeemable for the underlying assets at maturity), reducing IL risks.

Pendle’s Corn Pool offers high BTC staking yields with the following APYs for LP users:

• PumpBTC (Corn) Pool: 19.24% APY, TVL $2.5M
• uniBTC (Corn) Pool: 13.78% APY, TVL $29M
• solvBTC (Corn) Pool: 32.19% APY, TVL $51M
• LBTC (Corn) Pool: 10.56% APY, TVL $33M

Source: Pendle Liquidity Pools

Pendle Points Market

Pendle’s points market offers three ways to earn: leveraged yield mining (YT, Yield Token), fixed income (PT, Principal Token), and liquidity provider rewards.

• Leveraged Yield Mining (YT): This allows users to take leveraged positions in BTCFi token yields. YT offers high returns but comes with the risk of the token’s value going to zero at maturity. However, users can exit anytime while keeping their accumulated points, making it attractive for traders seeking to maximize points.
• Fixed Income (PT): For those who prefer a more passive strategy, PT provides steady returns and can be redeemed 1:1 for BTCFi tokens at maturity, making it a low-risk choice.
• Liquidity Provider (LP) Rewards: This strategy allows users to earn rewards from BTCFi tokens and $PENDLE while also receiving trading fees.

Users can amplify point earnings in Pendle’s Corn pool by purchasing YT tokens.

• PumpBTC (Corn): Earn 1x Babylon, 3x Corn, and 4x PumpBTC points
• uniBTC (Corn): Earn 1x Babylon, 3x Corn, and 5x Bedrock points
• SolvBTC.BBN (Corn): Earn 1x Babylon, 3x Corn, and 14 Solv XP for every $1
• LBTC (Corn): Earn 1x Babylon, 3x Corn, and 3x Lombard points

Conclusion

CORN has great potential for future development. First, CORN plans to continue improving its cross-chain bridge protocol, which will help attract more users and liquidity and increase the overall ecosystem’s interoperability. Additionally, the further promotion of the BTCN token will create more opportunities for Bitcoin holders to engage in DeFi. At the same time, CORN’s unique incentive model may lay the foundation for innovations in the DeFi space.

CORN connects Bitcoin and Ethereum through its innovative BTCN token, opening new possibilities in DeFi. In a highly competitive Layer 2 environment, CORN’s distinctive approach allows it to stand out. For instance, CORN’s partnerships with projects like Pendle and Babylon offer users a variety of high-yield opportunities, with Pendle’s Corn Pool delivering an impressive 32.19% APY.

Moreover, CORN’s Kernels point system and point integrations from other protocols (such as Babylon and Lombard) provide users with multiple rewards. This innovative incentive structure is expected to draw even more participants. Suppose CORN continues to develop steadily and push forward its innovative vision. In that case, it will likely become a key player in the Layer 2 ecosystem, further advancing blockchain technology integration and innovation.