Liquid and Native Staking on Stacking DAO

Understand the differences between liquid staking and Native STX staking on Stacking DAO.

The Problem Stacking DAO solves

Staking lets asset holders earn rewards by participating in the Stacks network. Stacking DAO offers both liquid staking and Native STX staking. The main difference is what happens to the position after a user deposits.

Liquid staking — Liquid staking gives the user a token representing the underlying staking position. Stacking DAO offers three liquid staking tokens: stSTX for STX rewards, stSTXbtc for BTC rewards, and stBTC for Bitcoin Staking rewards denominated in sBTC. These tokens remain transferable and can be used across supported Stacks DeFi applications while the underlying assets participate in staking. Liquid staking introduces smart-contract exposure and a fee on staking rewards. It is designed for users who want liquidity or DeFi access while earning.

Native STX staking — Native STX staking does not issue a liquid token. Users stake STX and earn BTC rewards, with delivery as BTC or sBTC chosen by the user. Stacking DAO charges 5% fees for its Native STX staking pool. The trade-off is that the staked position cannot be used elsewhere in DeFi.

Choosing an option — Choose liquid staking when you want a transferable token or access to supported DeFi applications. Choose Native STX staking when you want sBTC/BTC rewards and do not need a liquid token. The right product also depends on whether you want rewards in STX, BTC, or sBTC.

What is Staking? Staking is the process of locking STX to participate in the Stacks consensus mechanism, helping to secure the network. It’s similar to staking ETH on Ethereum.

Currently, over 400 million STX are staked, earning an annual yield of 9% or more. You can track live statistics on the stacking-tracker website.