Polychain Capital has invested $6.7 million in Corn, a new Ethereum layer-2 (L2) network focused on generating yield with a Bitcoin-centric approach.
Corn, which launched on August 19, utilizes a tokenized version of Bitcoin (BTCN) for gas fees and economic incentives. The network aims to enhance Bitcoin's utility and create new yield-generating opportunities, according to Chris Spadafora, founder of Corn and BadgerDAO. Spadafora stated that,
“By aligning network participants through the power of Super Yield Farming, ensuring foundational token utility, and putting Bitcoin in the driver seat, Corn is definitely not just another vanilla chain launch.”
The network's primary goal is to unlock Bitcoin’s significant liquidity for decentralized finance (DeFi). With a market capitalization exceeding $1.1 trillion, Bitcoin holds considerable potential for DeFi applications. Spadafora emphasized that "BTCN unlocks the Bitcoin liquidity for DeFi," allowing users to bridge native BTC, use existing tokenized BTC, or leverage BTC already secured with a trusted custodian.
Corn’s yield-generation model, known as the "Crop Circle," aims to align users, applications, and token holders within a unified ecosystem centered around BTCN. Revenue will primarily come from native CORN token emissions, transaction fees, and bribes received by Corn stakers.
Spadafora explained,
"Yield comes from the native CORN emissions issued by the chain on a per block basis, the bribes Corn stakers receive from external parties that want their vote weight to be directed in a certain way, and finally the transaction fee from the network in the form of BTCN that are redistributed to Corn stakers."
Unlike most yield-generating protocols, Corn launched without a fixed yield, with returns depending on the ecosystem’s growth and participant engagement through Corn’s flywheel mechanic.
In addition to Polychain Capital, Corn's funding round included investments from notable crypto firms such as Binance Labs, Framework Ventures, HTX Ventures, and Relayer Capital.
