Stacks is a Bitcoin Layer 2 solution that unlocks BTC capital with new use cases, leverages Bitcoin security with 100% Bitcoin finality, and provides fast transactions. Activate the Bitcoin economy with Stacks. What is sBTC? sBTC is a 1:1 Bitcoin-backed asset on Stacks Bitcoin L2, enabling developers to create efficient use cases for BTC, opening the door to Bitcoin DeFi, NFTs, and more.
sBTC aims to unlock over $2 trillion worth of BTC liquidity for DeFi and dApps through Stacks, paving the way for a prosperous Bitcoin economy. sBTC is operated by multi-signature, including institutional giants such as BitGo, Asymmetry, Ankr, etc., making it one of the most decentralized BTC versions on L2.
Transactions on L2 are protected by 100% of Bitcoin’s security budget, making BTC transactions on L2 as irreversible as L1. How does sBTC work? The user journey begins with a Bitcoin mainnet transaction, where BTC is deposited into a multi-signature protocol monitored by the decentralized Stacks signer group.
Once BTC is deposited, sBTC is minted on Stacks, enabling users to interact with DeFi dApps. A deposit cap of 1,000 BTC will be implemented during this phase to allow for controlled testing, while ongoing security efforts continue to strengthen the protocol as it expands. Only deposits are supported in the early stage, and withdrawals are temporarily unavailable.
sBTC will have a yield. Early users of sBTC will receive 5% APR when they connect their wallet to Stacks (live broadcast on December 17 at 11 a.m. ET). This is possible through the sBTC rewards program. Early users only need to hold sBTC to receive BTC rewards (allocated in the form of sBTC). sBTC main features: – DeFi use cases: additional revenue – Where can sBTC be used?
– Multiple DeFi protocols will support sBTC, allowing users to earn 5% additional income beyond the target by just holding sBTC. Reminders: – Hermetica’s DeFi protocol offers USDh, the first yield-generating stablecoin backed by Bitcoin. Earnings are continuously generated through the perpetual funding rate payment of the centralized exchange platform and are paid out on a daily basis.
– stSTXbtc is a new liquid staking token that users can deploy on Stacks DeFi. By holding this token, users will receive overlay rewards of up to 10% of the API, paid directly to your wallet in sBTC. How is sBTC different from other Bitcoin assets such as wBTC, cbBTC, ecc, etc.? These BTC assets typically require sending BTC to an intermediary or relying on a trusted consortium of signers/small multi-signers.
sBTC will initially rely on a team of 15 signers, including enterprise-level institutions such as BlockDaemon, Figment, Luganodes, and Kiln, to handle pegs and pegs. Over time, this responsibility will be transferred to all Stacks signers, allowing anyone to participate in the security and decentralization of the network.
BitGo, the Aptos Foundation, and others are also expected to join the effort. Additionally, thanks to the design of Stacks, sBTC will benefit from 100% Bitcoin finality, meaning transactions on the Stacks layer will be as irreversible as Bitcoin. Reminder: Signers are responsible for verifying and approving each generated block; anyone can become a signer, provided there are enough STX accumulated to become a separate signer – similar to the concept of validators.
Extra: 1. sBTC additional materials: sBTC website | sBTC Documentation | sBTC deck 2. Satoshi Nakamoto upgrade information: Satoshi Nakamoto website | document 3. The Satoshi hard fork provides: – Fast block generation (reduced from the current 10 minutes to less than 1 minute, optimization is in progress) – 100% Bitcoin certainty – Fast Blocks: Fast Blocks brings a Solana-like experience to transactions and Bitcoin DeFi interactions, greatly improving the overall user experience of interacting with Stacks L2.
– The Stacks DeFi ecosystem has grown a lot this year, and applying DeFi strategies now takes just seconds, boosting onboarding and retention. – Before the Satoshi hard fork, Stacks blocks were in sync with Bitcoin blocks and was stable (10 minutes on average), making the chain slow and insufficient for DeFi activities.
This limitation no longer exists. Instead, Stacks blocks now take just a few seconds, and performance improves regularly. Once a Bitcoin block settles, it’s still possible to take advantage of Bitcoin’s security. – 100% Bitcoin Finalized: With the Satoshi Nakamoto upgrade, transactions occurring on Stacks L2 will utilize 100% of the Bitcoin security budget, meaning that once consecutive Bitcoin blocks settle, Stacks transactions become Bitcoin-like Coins are also irreversible.
– Bitcoin blocks are no longer tied to a single Bitcoin block, but to a miner’s tenure, during which they mine several Stacks of blocks that settle within seconds. – There are already 50 signers, including enterprise-level institutions such as BitGo, Aptos, Luganodes, Kiln, etc., responsible for verifying and approving every block produced during the miner’s tenure.
– Bitcoin finality’s fast block times make Stacks the most scalable and secure Bitcoin L2, running alongside a decentralized signer network that will allow BTC to become decentralized in the future through the upcoming sBTC upgrade.
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