Frequently Asked Questions

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

   Stacking DAO is a Liquid Stacking protocol on Stacks that makes Stacking easily accessible to anyone and unlocks liquidity for Stacked STX through stSTX, which can then be used across DeFi. How does it work?

   • Anyone can participate in Stacking by depositing STX into the protocol.

   • Users will then receive stSTX, a liquid representation of stacked STX that accrues in value as Stacking rewards are collected.

   • VelarFinally, stSTX can also be used across DeFi to earn additional yield.

2. What does the commission mean? The protocol takes a cut from the Stacking yield on the STX deposited. This is the commission.

3. When are my STX locked and for how long? STX are locked at the start of a new cycle. Check the Stacking DAO web app to see when the new cycle starts. Once STX are locked, they are locked until the start of the next cycle. Stacks cycles last roughly 2 weeks.

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

5. 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!

6. Are contracts audited? Yes, see the audit report: https://www.coinfabrik.com/blog/stacking-dao-audit/

7. 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/

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

9. Why does StackingDAO accrue Stacking yield in STX, and not in BTC? With StackingDAO, a user’s yield would be converted to STX and autocompounds inside the contract that backs stSTX. This is different from Stacking which yields BTC. While it’s possible on a smart contract level to back stSTX with STX and BTC yield in one or multiple of sBTC/xBTC/aBTC, this is undesirable. Most importantly, if stSTX were in part backed by BTC it would be very difficult to maintain a good stSTX-STX pair. If stSTX is only backed with STX, its price moves linearly with STX making stSTX-STX liquidity easily managed on a stableswap. If part of stSTX is backed with BTC, a sophisticated environment of arbitrageurs would be required to maintain liquidity and stSTX would often be off-peg. At the same time, if stSTX were in part backed with BTC stacking yield would no longer autocompound (since BTC cannot be stacked to earn a yield). There are many other reasons why it makes little sense to back stSTX in part with BTC, but these are the most important ones for now.

10. Who are the Signers used by Stacking DAO for STX delegations? 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 evenly distributed among all Signers, helping to secure the Stacks network by bootstrapping a distributed set of Signers.