StackingDAO
StackingDAO
StackingDAO
  • The basics
    • Stacking DAO Overview
    • The Importance of Liquid Stacking
    • Instant & Daily 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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  • The Problem Stacking DAO solves
  • The Solution
  1. The basics

The Importance of Liquid Stacking

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Last updated 2 days ago

The Problem Stacking DAO solves

Stacking, as it stands, isn’t a smooth experience—and it’s become even more complex with the Stacks Nakamoto upgrade:

  1. Each stacking cycle lasts 2 weeks, which means long wait times to unlock and restack

  2. Rewards don’t start immediately—users may wait a full cycle before seeing any yield

  3. A high minimum of around 90,000 STX is required to participate

  4. With Nakamoto live, users must now run a node with liveness to stack directly

StackingDAO was built to solve these issues and make stacking more accessible, efficient, and rewarding.

What is Stacking? Stacking 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 stacked, earning an annual yield of 9% or more. You can track live statistics on the .

The Solution

StackingDAO offers a liquid stacking protocol that provides users with tokenised representations of stacked STX: stSTX and stSTXbtc. Think of it as Lido or Jito, but for Stacks.

Key benefits include:

  1. No more 2-week unstacking delays – With stSTX-STX pools on a DEX, users can trade back to STX anytime (for both stSTX and stSTXbtc)

  2. Instant, continuous yield – Rewards start accruing daily from the moment of deposit

  3. No 90k STX minimum – Users can stack any amount

  4. No need to run a node – StackingDAO handles node liveness post-Nakamoto upgrade

As liquid, yield-bearing assets, stSTX and stSTXbtc are positioned to become core building blocks of the emerging Bitcoin DeFi ecosystem—particularly as collateral. For STX holders, borrowing against these tokens is likely to be the most tax-efficient way to access liquidity.

Why hasn’t liquid stacking taken off on Stacks before?

Although Stacks has been live since 2021, liquid stacking only became technically feasible in 2023. Before April of that year, Stacks smart contracts didn’t support continuous stacking, which is essential for liquid solutions.

Demand for delegated stacking is now expected to rise significantly. With the 2024 Nakamoto upgrade, users must run a node with liveness to stack—an added technical hurdle that will likely push most users toward custodial or delegated stacking options.

For these reasons, StackingDAO received a grant from the Stacks Foundation to research and develop a liquid stacking protocol purpose-built for the post-Nakamoto era.

stacking-tracker website