📉 Market Crash | MERL’s Strength 💯
Extreme liquidity event caused $40B+ perp liquidations.
MERL stayed stable thanks to protected order book.
Strong performance drew attention from builders, traders, and institutional partners.
🪄 BTC Staking & BTCFi
Season 1: ~17% APR; Phase 2 live with BTC + tokenized stocks.
Institutional adoption rising; cross-chain BTCFi expanding.
🌟 Merlin Focus & Vision
Priorities: BTCFi & DAT; AI in progress.
Focused on adaptability, risk management, and sustainable growth.
MERL's Market Crash
Jeff: Last Friday was an extreme event — most market makers suddenly pulled their orders, causing order books across tokens to go empty within minutes. This triggered massive liquidations, likely over $40B, as even small sell pressure caused prices to crash 80–90%.
Many strong tokens dropped 90%+ briefly, not from selling but from a lack of liquidity. But Merlin held up because our market makers maintained a stable order book, keeping trading active while others collapsed.
When I woke up a few hours later, I was relieved to see Merlin’s order book protected and stable — a sign of strong infrastructure and reliable partners.
Merlin’s Strength During Extreme Liquidity Crunch
Jeff: Essentially, all market makers hit “risk-off” mode, canceling buy orders across thousands of tokens. With no bids, prices could have gone to zero with just small sells.
Merlin stood strong because our order book was protected, even liquidating shorts. On that day, MERL was one of the very few tokens that didn’t drop, drawing attention from major players like Ryan Lunar.
I see this as both luck and a validation of our infrastructure. Events like this are unprecedented — in 10 years of crypto markets, nothing like this happened. Hopefully, the industry learns and builds stronger mechanisms, similar to how past accidents have made aviation safer.
Post-Crash Attention & Partnerships
Jeff: After the market event, we’ve had a lot of calls and meetings — from builders who suffered losses, projects that haven’t launched yet seeking advice, to serious investors looking to collaborate. Our strong performance gave confidence for deeper partnerships, including projects like digital asset treasury initiatives with NASDAQ companies.
Many traders and investors actually profited from arbitrage and automatic short mechanisms during the crash — for example, some closed short positions at extreme lows while holding spot positions that later recovered, earning gains they didn’t initially plan for. This unexpected dynamic highlighted Merlin’s stability and attracted attention from both institutional and retail participants.
Overall, the event increased engagement, partnerships, and opportunities for us to support new builders, strengthen ecosystem relationships, and continue expanding our presence in the crypto space.
Merlin BTCFi Progress & Institutional Interest
Jeff: We just completed Season 1 of BTC staking on Merlin Chain, offering about 17% APR paid in Bitcoin over three months. The rewards come from Q3 farming and yield activities, and many of those tokens gained value before the broader market dip, letting us deliver strong returns to users.
Looking ahead to Q4, more projects are launching on major exchanges and we’re finding additional low-risk yield opportunities. Products like HyperLiquid show on-chain pools can be resilient, even during volatile events, proving that institutional and retail interest in BTCFi is growing.
Bitcoin remains the key asset driving incentives and liquidity across on-chain LPs, and as more perps and chains launch products, BTC staking and LP participation will continue to play a central role in generating value for users and institutions alike.
BTCFi Risk Management & Institutional Recognition
Jeff: Nothing is 100% risk-free, but we carefully select legit protocols and design vaults to minimize potential losses, so users can earn Bitcoin safely from opportunities like Hemi, and Falcon Finance. Risk control is central—without it, yield simply wouldn’t exist.
We’re also pushing BTCFi into broader adoption, working with NASDAQ companies and passing all legal and auditing requirements. This brings institutional recognition, opening the door for more partnerships and bigger BTC staking initiatives. With major players like MicroStrategy entering the space, the BTC ecosystem and BTCFi adoption will continue to grow, bridging both DeFi and traditional finance.
Merlin BTC Staking Phase 2 — Hybrid Incentives & Expansion
Jeff: Phase 2 of BTC staking is live for Q4, running for 3 months to accommodate liquidity commitments from partnered DeFi projects. Building on Season 1’s success, we’re expanding to more chains and protocols, with hybrid incentives: primarily Bitcoin rewards, but potentially tokenized stocks from NASDAQ companies in users’ wallets.
Initial uptake is strong — ~75 BTC already staked, expected to reach 100 BTC soon. Higher caps may open, so users should watch official channels for updates. Incentives are designed to be attractive, diversified, and aligned with broader BTCFi adoption.
Merlin’s Current Focus: BTCFi & DAT
Jeff: Merlin’s primary focus right now is on BTCFi (BTC staking) and DAT, as these provide quick market feedback and tangible value to users. While the team is also building AI features, those will take longer to deliver. BTCFi and DAT remain the top priorities, with ongoing updates and positive news expected for the community.
Mindset & Big-Picture Thinking in Building Merlin
Jeff: Success isn’t just about geography or compliance—it’s about mindset and adaptability. While many teams focus narrowly on their comfort zone, Merlin constantly looks at the bigger picture, shifting from ordinals to BTCFi, memes, DeFi, and cross-chain BTC. By staying open-minded and following market trends, the team captures opportunities that others miss, ensuring the ecosystem grows and remains relevant to both Eastern and Western investors.
Lessons from Market Volatility & BTCFi Vision
Jeff: The key takeaway from recent market swings is to avoid excessive leverage and focus on long-term learning and building. Pivoting early to BTCFi was crucial—it’s a space that will endure for decades. By staying disciplined and adaptive, Merlin continues to position itself for sustainable growth and market relevance.