Immediate Yield with Stacking DAO
Last updated
Last updated
With Stacking DAO's unique architecture, users can capture yield immediately when stacking STX to mint stSTX with zero wait times. Let's start with the basics to better understand how it works.
"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.
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.
Stacking DAO is the only stacking service that offers immediate yield.
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.
This unique design is an advantage over other pools, where people's deposits start earning yields only in the cycle following the deposit.
