Stacking DAO, a liquid staking protocol on Stacks, has announced stBTC, a new liquid staking token for Bitcoin. The token will launch on Stacks alongside the upcoming Bitcoin Staking release and will make this possible $BTC holders to earn staking rewards while keeping their assets available for use across the ecosystem.
After staking Bitcoin, users receive stBTC, which can be transferred or used in DeFi applications without waiting for the original $BTC to unlock. The protocol expects the initial base efficiency to be approximately 3%, depending on the network parameters.
The token will be compatible with existing Stacks applications, including Zest Protocol, a Bitcoin-backed lending platform, and BitFlow, a decentralized digital asset exchange.
The wagering rewards are expected to come from economic activity on the Stacks network. Bitcoin issued by miners to secure the network is distributed to participants in the staking system, creating a reward model based on network usage rather than token emissions.
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