Proof of Growth: Stacking DAO Insider - A Call to Builders and Believers

Welcome to the Stacking DAO Insider – your go-to source for all things Bitcoin, Stacks, and the future of DeFi!

As pioneers in the Stacks ecosystem, we’re thrilled to bring you exclusive insights, the latest updates, and expert analysis straight from the frontier of decentralized finance.

Whether you’re a seasoned stacker or just starting your journey, this newsletter is packed with everything you need to stay ahead in the world of crypto. Get ready to unlock new opportunities and elevate your DeFi game!

Stacking DAO is the leading liquid staking protocol on Stacks, allowing users to earn consensus rewards from stacking STX tokens while retaining liquidity by minting stSTX.

This enables users to participate in Stacks DeFi activities like trading, lending or providing liquidity, maximizing yield opportunities while still securing the network.

Over the last two cycles, the yield for holding stSTX has averaged 10.08% APY, paid in additional STX tokens. Stack Today Here!

Stacks in Focus: A Call to Builders and Believers

In recent weeks, the Stacks community has faced challenges that have sparked concern and debate. The STX token has underperformed compared to broader market trends, declining from $3 to under $2, even as Bitcoin, Solana, Sui and others have seen significant gains.

Adding to this, a temporary outage of the Stacks testnet during the holiday season created unease among developers who rely on it for testing their applications. While these issues are real, they must be viewed alongside the extraordinary progress the Stacks ecosystem has made.

Technological Milestones: Nakamoto Upgrade and sBTC

Despite market sentiment, the core Stacks team has continued to deliver tangible advancements. The Nakamoto upgrade has successfully brought faster blocks and 100% Bitcoin finality, reinforcing Stacks’ position as a secure and scalable Bitcoin layer.

Furthermore, the launch of sBTC, a trustless Bitcoin pegged asset, was a major success, reaching its 1,000 BTC cap within just three days. This achievement is a testament to the pent-up demand for unlocking Bitcoin’s value within the Stacks DeFi ecosystem.

Muneeb Ali, co-founder of Stacks, has proven to be a wartime founder, steadfastly steering the ecosystem through turbulent times. He has also demonstrated his commitment to transparency by already hosting a couple of AMA-type X Spaces this year, engaging directly with the community and addressing concerns.

The vision for Stacks remains as compelling as ever: to become the leading Bitcoin Layer 2 and unlock the $2 trillion latent value of Bitcoin.

Ecosystem Growth: Building Momentum

Ecosystem growth is not just about the technology—it’s also about the builders and products that capture user interest. Stacks DeFi has seen encouraging growth, with Zest surpassing $70 million in TVL as users deposited sBTC to earn yield and rewards. This is a clear demonstration of the demand for Bitcoin-native financial products.

Other Stacks DeFi projects, such as Velar, Bitflow, and Arkadiko, are also shipping and creating new products around sBTC. These include solutions to swap sBTC or lend and borrow against it, further expanding the utility and adoption of Bitcoin-backed assets within the ecosystem.

Stacking DAO is also poised to contribute significantly with the imminent launch of stSTXbtc. This new product will allow users to earn sBTC rewards while retaining liquidity, creating new opportunities for users to participate in the ecosystem. Products like these are essential to driving TVL for both sBTC and STX.

A Call to Builders: Seizing the Moment

For Stacks to achieve its full potential, we need the builders in our ecosystem to rise to the challenge. New incentives, applications, and use cases are critical for growing TVL and attracting more users. Builders must continue to innovate and create compelling products that leverage the unique strengths of Stacks.

At the same time, Stacks leaders also need to take a more active role in championing the ecosystem. Leaders from organizations like Trust Machines, Hiro, Bitcoin L2 Labs, the Stacks Foundation, and the Stacks Asia Foundation must be more vocal across social channels.

They need to highlight the accomplishments of Stacks projects, engage with the community, and address questions or concerns transparently. This visible leadership will play a crucial role in reinforcing confidence and inspiring continued participation in the ecosystem.

At the same time, it’s important for the community to remember that technological progress often outpaces market sentiment. The advancements Stacks has made are foundational and will position the network for long-term success. Now is the time to double down on the belief that Bitcoin’s value can be unlocked through smart contracts and DeFi applications on a Bitcoin-native Layer 2.

Why Now Might Be the Best Time

For those who believe in the vision of Stacks and the broader potential of Bitcoin DeFi, the current market dip may represent an opportunity. While prices are down, technological progress is flourishing, and the groundwork is being laid for a robust and thriving ecosystem. STX holders and supporters are uniquely positioned to benefit as the ecosystem matures and gains traction.

The journey to unlocking Bitcoin’s value is not without its hurdles, but the Stacks community has repeatedly shown resilience. By focusing on growth, supporting builders, and fostering innovation, Stacks can solidify its place as the leader in the Bitcoin Layer 2 space.

Together, We Build

Let’s turn challenges into opportunities. The Stacks ecosystem is only as strong as the community behind it. Now is the time to build, to innovate, and to believe in the future we are creating together. The potential is immense, and with continued effort, Stacks can lead the way in transforming Bitcoin from a static store of value into the foundation of a new decentralized financial system.

Let’s make it happen.

The Stacks DeFi Show #49

On the latest episode of the Stacks DeFi Show, Stacking DAO core contributors Tycho and Philip discussed interoperability and cross-chain Bitcoin DeFi with Portal to Bitcoin and XLink.

Click here to check out the episode!

Around the Ecosystem

Stacking DAO Details:

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