Some wild developments are unfolding beneath the radar: the circulating supply of @Coredao_Org's $CORE is being quietly absorbed. This phenomenon stems from a groundbreaking BTC yield product—lstBTC.
🧵 Here’s how it works:
lstBTC allows holders to earn BTC-denominated yields without selling their Bitcoin. It’s secure, liquid, and optimized for institutional use. But the hidden catalyst? Every lstBTC minted intensifies demand for $CORE.
The Institutional lstBTC Minting Process
To mint lstBTC, institutions:
- Deposit BTC
- Borrow stablecoins
- Purchase $CORE (~15% of the BTC amount)
- Stake BTC + $CORE to maximize yield
- Hedge $CORE exposure
Result?
- Sustained, large-scale $CORE demand without sell pressure.
- Purchased $CORE isn’t just held—it’s locked to boost yields, effectively removed from circulation. This is protocol-enforced supply compression.
Quantifying the Impact (So Far)
In just months:
✅ 70M $CORE staked
✅ 5K BTC staked
✅ Price surge: +60%
All fueled by lstBTC’s self-reinforcing mechanics:
👉 More BTC → More lstBTC → More $CORE bought/locked → Higher yields → More BTC attracted.
Why This Cycle is Explosive
Institutions don’t need to understand $CORE—**demand is programmatic**. Each lstBTC deposit auto-triggers $CORE buys, tightening supply invisibly. Historically, when vanishing supply meets forced demand, prices don’t just rise—they detonate.
FAQ: Unpacking the lstBTC-$CORE Dynamic
Q: How does lstBTC differ from traditional BTC staking?
A: It’s non-custodial and generates BTC yields (not altcoin rewards), with $CORE as a yield-boosting lever.
Q: Why does $CORE demand grow with lstBTC adoption?
A: The protocol mandates $CORE purchases (~15% of deposited BTC) for maximum yields, creating inelastic demand.
Q: What happens if BTC’s price fluctuates?
A: Hedging mechanisms protect institutions, while $CORE’s locked supply shields against dumps.
👉 Discover how institutions are leveraging lstBTC for compounded yields
The $CORE squeeze is just beginning—most haven’t even noticed.