Key Points
- Corn, a new Ethereum Layer 2 network designed for Bitcoin utilization, has completed a $6.7 million seed round led by Polychain Capital, with additional strategic investment from HTX Ventures.
- Corn introduces BTCN, a tokenized Bitcoin backed 1:1 by native Bitcoin, as its gas token and implements a unique “Super Yield” model to align network participants’ interests.
Corn, an innovative Ethereum Layer 2 network aimed at optimizing Bitcoin utilization, has successfully raised $6.7 million in a seed financing round led by Polychain Capital. Additionally, HTX Ventures, the global investment arm of cryptocurrency exchange HTX, has announced a strategic investment in the project, further bolstering its financial and industry support.
Heavyweight Backing: Polychain Capital’s Lead and Industry Significance
Polychain Capital’s Lead and Industry Significance Polychain Capital’s involvement as the lead investor adds significant credibility to Corn’s project. Founded in 2016, Polychain Capital is a San Francisco-based digital asset investment firm known for its strategic venture capital investments in blockchain and Bitcoin-related technologies across the United States. Their leadership in this seed round underscores the potential they see in Corn’s approach to bridging Bitcoin and Ethereum ecosystems.
Corn: Bridging Bitcoin and Ethereum
Corn is a pioneering platform that bridges the gap between Bitcoin and Ethereum’s decentralized finance (DeFi) ecosystem. The network’s standout feature is its native BTC bridging capability, allowing users to leverage their Bitcoin holdings within the Ethereum Virtual Machine (EVM) environment.
Edward, Managing Partner at HTX Ventures, expressed enthusiasm for the project, stating, “Corn is led by a team of highly experienced DeFi builders. It integrates proven DeFi-oriented tokenomic frameworks to attract users and enable native protocols and asset issuers to drive sustainable demand.”
BTCN: Innovating Bitcoin Tokenization
BTCN: A New Approach to Tokenized Bitcoin At the heart of Corn’s innovation is BTCN, a tokenized version of Bitcoin that serves as the network’s gas token. Unlike previous attempts at Bitcoin tokenization, BTCN is not confined to a single centralized custodian or bridging solution. Instead, it extends minting rights to multiple custodians, smart contracts, and bridging protocols, offering Bitcoin holders greater flexibility in their assets’ custodied and utilized.
Chris Spadafora, the founder of Corn, emphasized the platform’s user-centric approach: “We’re excited to have HTX ventures support Corn from the earliest stage and help bring our vision of making it easy for anyone to finally use their Bitcoin.”
Aligning Incentives: Super Yield and veTokenomics
Corn introduces a “Super Yield” model, which aims to align the interests of users, applications, and token holders. This model incorporates elements of the veTokenomics system pioneered by Curve Finance, which has been adapted to function at the chain level.
Users can stake CORN tokens to receive “popCORN,” which grants them voting rights on the distribution of network incentives. This mechanism is designed to create a self-sustaining ecosystem where user engagement, application development, and token utility mutually reinforce each other.
As the crypto industry evolves, projects like Corn represents a growing trend toward interoperability and efficient capital utilization across different blockchain networks. The substantial seed funding led by Polychain Capital, a veteran in blockchain investments, coupled with the strategic investment from HTX Ventures, signals strong institutional confidence in Corn’s approach to bridging Bitcoin and the broader DeFi ecosystem.
