An introduction to stSTXbtc: STX Liquid Stacking While Earning sBTC Rewards

stSTXbtc is going live next Thursday, January 23!

This new liquid staking token offers a way for STX holders to keep their assets liquid while earning sBTC rewards directly in their wallets.

Below is a complete breakdown of what stSTXbtc is, how it works, and why it’s a game-changer for the Stacks ecosystem.

What is stSTXbtc?

stSTXbtc is a liquid staking token that is backed 1:1 with STX. It streams sBTC rewards to holders after each staking cycle, offering several key benefits:

• Earning BTC, the leading crypto asset
• Retaining liquidity of STX in the form of stSTXbtc, usable across Stacks

How does stSTXbtc work?

stSTXbtc operates with a simple yet effective model:

• For each STX deposited, you mint 1 stSTXbtc—ensuring a 1:1 ratio
• Earn sBTC directly in your wallet after every staking cycle, with up to 10% APY potential
• Withdraw your stSTXbtc for STX at any time, with a 1:1 conversion rate.

stSTXbtc vs stSTX: What’s the difference?

Both stSTXbtc and stSTX are designed to solve the same problem: unlocking liquidity for Stacked STX. However, there are key differences:

• stSTXbtc: Offers sBTC yield, bringing BTC rewards to users
• stSTX: Provides auto-compounding STX rewards, focusing on growing STX holdings

The stSTXbtc<>stSTX Switch: A seamless experience

An exciting feature of stSTXbtc is the ability to easily switch between stSTXbtc and stSTX tokens without having to unstack. This one-click swap option will be available directly on the Stacking DAO website, enhancing user experience and offering flexibility.

How will stSTXbtc be used across the Stacks ecosystem?

stSTXbtc will be usable across the Stacks DeFi ecosystem. Some potential use cases:

1. Earn extra yield by depositing on Zest lending protocol
2. Velar, Bitflow, & ALEX DEXs integrating Stacking DAO instant swap contract with no slippage
3. Mint USDA on Arkadiko by using stSTXbtc as collateral

Other benefits of stSTXbtc?

• Earn an additional 5% APY on the sBTC received thanks to the sBTC reward program

• No switching cost - Stacking DAO's design lets users earn rewards in the same cycle they deposit—no upcoming cycle waiting required

Conclusion: The best of both worlds

stSTXbtc represents the best of both native and liquid staking. It allows users to earn sBTC rewards while maintaining the liquidity of their Stacked STX. This development makes Liquid Staking solutions even more attractive to the Stacks ecosystem and further supports its growth and innovation.

With stSTXbtc, you’re not just staking—you're unlocking more value for your STX while keeping it liquid and working for you.

Stacking DAO Details:

Mint stSTX today and earn up to 10% yield on your STX: https://app.stackingdao.com/

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