Frequently Asked Questions

1. What is Stacking DAO, and how does it work?

   Stacking DAO is the STX Stacking infrastructure powerhouse for the most prominent Bitcoin L2. The protocol currently offers 3 STX Stacking services:

   • stSTX: A liquid representation of stacked STX that accrues in value in STX as Stacking rewards are auto-compounded. It can also be used across DeFi to earn additional yield and points.

   • stSTXbtc: A second liquid stacking token backed 1-to-1 with STX, and holders receive sBTC streamed directly to their wallet. stSTXbtc can also be used across Stacks dApps.

   • Native Stacking: Delegate STX and earn BTC rewards with zero fees while STX are locked during the two-week Stacking cycles.

2. How do I receive Stacking rewards? The Stacking process yields BTC rewards, but they are processed in different ways based on the Stacking DAO service.

   • stSTX: BTC rewards are converted to STX, which are automatically placed in the smart contracts that back stSTX. A user's stSTX balance stays the same, but when redeeming, they get their deposited STX plus stacking rewards.

   • stSTXbtc: BTC rewards are converted to sBTC and directly streamed to stSTXbtc wallet holders

   • Native Stacking: BTC Rewards are deposited on the user's pre-defined Bitcoin wallet

3. What is the staking commission? The protocol and Signers each take a 5% cut from the Stacking yield on the STX deposited for the stSTX and stSTXbtc products. There are no fees for the native stacking BTC yield product.

4. When are my STX locked, and for how long? STX deposited across Stacking DAO services are locked at the start of a new cycle and remain locked until the start of the next cycle. Check the analytics section of the Stacking DAO web app to see when the new cycle starts. Stacks cycles last roughly 2 weeks.

5. How is BTC yield converted into STX (for stSTX)? BTC yield is received on a Bitcoin address controlled by Stacking DAO. Stacking DAO swaps the BTC for STX and deposits the STX into the contract that backs stSTX.

6. How is BTC yield converted into sBTC (for stSTXbtc)? BTC yield is received on a Bitcoin address controlled by Stacking DAO. Stacking DAO then uses the sBTC peg-in mechanism to get sBTC and streamlines to stSTXbtc holders. It might be automated immediately to sBTC in a later phase.

7. Where can I use stSTX and stSTXbtc tokens? stSTX can be used across the Stacks DeFi ecosystem to earn additional yield and points. New integrations are constantly being added and can be viewed on the Stacking DAO site.

   The live integrations are:

   • Zest (https://www.zestprotocol.com)

   • Bitflow (https://www.bitflow.finance)

   • Velar (https://www.velar.co)

   • Arkadiko (https://arkadiko.finance)

   • Hermetica (https://hermetica.fi)

   stSTXbtc is currently integrated only with Zest, where it can be deposited as collateral to borrow other assets all while earning the sBTC cycle rewards.

8. How can I unstack my STX position? For stSTX, you can swap them to STX anytime through Bitflow for instant liquidity. Otherwise, for both stSTX and stSTXbtc you can get your STX back via Stacking DAO, but it will take up to 14 days to withdraw (length of 1 Stacking cycle). By initiating the withdrawal process on Stacking DAO, users will burn their LSTs and receive a temporary NFT that represents their withdrawal amount. Once the Stacking cycle is over, users can use the NFT to claim and withdraw their STX. For the native stacking, it's enough to perform a "stop stacking" transaction. The STX will unlock at the end of the cycle you are currently stacked, along with your cycle rewards. Read the docs for further information on the withdrawal process of each Stacking option.

9. How do I get my referral link? Make sure your wallet is connected on https://app.stackingdao.com/ and go to the Points page (https://app.stackingdao.com/points). You will see a big green button which says "Copy your referral link". Click this button to copy your link to the clipboard!

10. Are contracts audited? Yes, see the following audit reports Coinfabrik & Clarity Alliance

11. Is there a bug bounty program live? Yes, Stacking DAO launched a bounty program in collaboration with Immunefi, where bug and vulnerability hunters can earn up to $100k: https://immunefi.com/bounty/stackingdao/

12. Does the team have access to funds? No, the team does not have access to the STX funds locked in the Stacking DAO contracts.

13. Who are the Signers used by Stacking DAO for STX delegations? For the stSTX and stSTXbtc products, STX is delegated to the best enterprise-grade Validators / Signers in Web3, with a track record of optimal node uptime and billions in assets under management. These Signers are responsible for running nodes while STX tokens are safely controlled by Stacking DAO smart contracts. The stacked STX are distributed among all Signers, helping to secure the Stacks network by bootstrapping a distributed set of Signers.