Context

Merlin Chain is a second-layer solution for the Bitcoin blockchain, designed to bridge the gap between Bitcoin and the Ethereum Virtual Machine (EVM) ecosystem. As a native Layer 2 network of the Bitcoin blockchain, Merlin Chain focuses on enhancing the utility and scalability of Bitcoin assets through advanced integration and adaptation techniques.

The network employs ZK-Rollup technology. Sequencer nodes on Merlin Chain produce compressed transaction data and ZK proofs through zkEVM, which are then uploaded to the Bitcoin blockchain via a decentralized Oracle network, ensuring transparency and security.

Merlin Chain represents a strategic expansion in Bitcoin's ecosystem, offering users diverse DeFi capabilities and contributing significantly to its growth through innovative technological advancements.

Proposal

Enable support for Merlin Chain in the Symbiosis protocol aiming to enhance Symbiosis DeFi offerings with this advanced layer-2 solution for the Bitcoin blockchain. The integration includes the following:

• Incorporate support for the new blockchain within the Symbiosis protocol. This entails adding the WBTC token to the Symbiosis AMM DEX on the host chain. Concurrently, the Symbiosis relayer network should begin interfacing with the newly integrated blockchain.
• Deploy and tune Symbiosis contracts on Merlin.
• Implement on-chain routing via existing DEXes on Merlin.

Key points

• BTC's pivotal position in the blockchain and cryptocurrency realm renders it an essential element of the DeFi ecosystem. Introducing support for the Bitcoin L2 chain will empower users to interact with assets on the Bitcoin blockchain more securely and conveniently.
• Given its design as an L2 EVM-compatible chain, Merlin can be seamlessly integrated into the Symbiosis protocol.