StackingDAO
StackingDAO
StackingDAO
  • The basics
    • Stacking DAO Overview
    • The Importance of Liquid Stacking
    • Immediate and Continuous Yield with Stacking DAO
    • Points
  • The Stacking DAO app
    • stSTX - Liquid Stacking with STX Rewards
      • stSTX Basics
      • Depositing & Switching for stSTX
      • Withdrawing from stSTX
    • stSTXbtc - Liquid Stacking with BTC rewards
      • stSTXbtc Basics
      • Depositing & Switching for stSTXbtc
      • Withdrawing from stSTXbtc
      • stSTXbtc Transfers Issues
    • Native Stacking with BTC Yield
      • Native Stacking with BTC Yield Basics
      • Depositing STX in Native Stacking Pool
      • Withdrawing STX From Native Stacking Pool
    • Signer Delegations & Analytics
    • What are the risks of using Stacking DAO?
    • Frequently Asked Questions
  • Core Contracts
    • Stacking DAO Core V4
    • Signer Onboarding
  • Audits
  • Miscellaneous
    • Essential links
    • Restricted countries
    • Disclaimer
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  • How does the Stacking Process Work?
  • Issue With Other Stacking Solutions
  • Immediate Yield with Stacking DAO
  1. The basics

Immediate and Continuous Yield with Stacking DAO

PreviousThe Importance of Liquid StackingNextPoints

Last updated 10 days ago

With Stacking DAO's unique architecture, users can capture yield immediately when stacking STX to mint stSTX and stSTXbtc with zero wait times.

On top of that, users no longer have to wait 14 days (1 Stacking Cycle) for rewards. Yield is earned daily, boosting the utility of stSTX and stSTXbtc

Let's start with the basics to better understand how it works.

How does the Stacking Process Work?

"Stacks' consensus mechanism, Proof of Transfer (PoX), allows Bitcoin miners to bid BTC to win Stacks blocks and earn newly minted STX and transaction fees. The BTC committed by miners is then distributed to STX stackers as a reward for their participation in securing the network.

Issue With Other Stacking Solutions

Other stacking solutions make users wait for their yield:

1) When depositing STX in a pool, users will start earning yield only once the following cycle starts, losing 2 weeks of yield, as their tokens can't be added to a Stacking Cycle that is already ongoing.

2) Stacking cycles last 2 weeks, meaning that users can't move around locked STX in the meantime.

Immediate Yield with Stacking DAO

Stacking DAO is the only stacking service that offers immediate and continuous yield.

1) Immediate: This is possible because when a user deposits STX during a Cycle, he will earn the yield for that cycle, even if his tokens aren't actively used in the Stacking process.

If a user begins withdrawing during a cycle, their deposited STX still generates yield, but it’s distributed to those who remain stacked. The user can withdraw their STX at the start of the next cycle.

2) Continuous: This works because Stacking rewards from one cycle are distributed gradually over the 14 days of the next cycle.

This unique design is an advantage over other pools, where people's deposits start earning yields only in the cycle following the deposit.