$STX
Bitcoin scaling solution Stacks announced its plan to deploy sBTC in two phases. Specifically:
1. Phase one mainnet launch and Bitcoin deposit functionality open: Stacks will launch phase one mainnet on December 16, 2024, at which point the Bitcoin deposit functionality will be open. This means users can deposit their Bitcoin into the Stacks network and mint sBTC, an asset pegged 1:1 to Bitcoin, allowing Bitcoin holders to participate in DeFi applications and other smart contract functionalities while maintaining a peg to the underlying Bitcoin.
2. Phase two mainnet launch and Bitcoin withdrawal functionality open: Phase two is expected to be launched 6-8 weeks after phase one, anticipated in the first quarter of 2025, at which point the Bitcoin withdrawal functionality will be open. This will allow users to exchange sBTC back to Bitcoin, achieving bi-directional liquidity.
This deployment plan is implemented by Bitcoin L2 Labs, aiming to bridge Bitcoin to the DeFi space, providing Bitcoin holders access to a wealth of smart contract functionalities without sacrificing the security and value of their BTC holdings. The launch of sBTC is viewed as a key milestone for DeFi and Web3 users moving towards a decentralized, 1:1 Bitcoin-backed asset.
