> For the complete documentation index, see [llms.txt](https://docs.stackingdao.com/stackingdao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stackingdao.com/stackingdao/the-stacking-dao-app/stbtc-liquid-btc-staking-with-btc-rewards.md).

# stBTC - Liquid BTC Staking with BTC rewards

Learn how stBTC turns Bitcoin Staking positions into a liquid, yield-bearing asset on Stacks.

<figure><img src="https://561486992-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpR2O34qESrn0kvfaMx99%2Fuploads%2F9oXvwASeoY5PKyKR5sdU%2FstBTC-2%20(6).png?alt=media&amp;token=8855df57-7730-4a31-906b-54903f314b2f" alt=""><figcaption></figcaption></figure>

**stBTC** is Stacking DAO's liquid Bitcoin Staking token on Stacks. Users deposit sBTC, or use BTC that first moves through the sBTC peg path, and receive stBTC. Stacking DAO manages the backing sBTC across liquid reserves and PoX-5 sBTC bond positions. Bitcoin Staking rewards accrue in sBTC. As rewards accrue, each stBTC represents more sBTC.

What stBTC provides: Bitcoin Staking rewards denominated in sBTC. Automatic reward compounding through ratio growth. A transferable token on Stacks. Use across supported Stacks DeFi applications. Redemption to sBTC. stBTC can be used as collateral on Zest Protocol while the underlying position continues earning. Using stBTC in another application introduces that application's own smart-contract, liquidation, liquidity, and market risks.

BTC, sBTC, and stBTC — BTC is native Bitcoin on Bitcoin L1. sBTC is a BTC asset on Stacks; it is the asset that backs stBTC and in which stBTC rewards accrue. stBTC is Stacking DAO's liquid, yield-bearing Bitcoin Staking token on Stacks. A native BTC deposit through the Stacking DAO app first moves through the sBTC peg path. This is separate from an institutional native BTC Genesis Bond, where BTC remains timelocked on Bitcoin L1 and does not automatically become sBTC or stBTC.

Deposits and capacity — stBTC deposit capacity can vary between bond cycles. When deposits are available, use the current BTC or sBTC deposit route shown in the Stacking DAO app. When capacity is full or unavailable, join the stBTC waitlist (<https://tally.so/r/vGb2Zg>) and the Stacking DAO LP Telegram (<https://t.me/stackingdao_lp>) for updates.

Withdrawals — Redemption returns sBTC. Current withdrawal methods, reserve availability, fees, conversion rates, and estimated timing are shown in the Stacking DAO app.

## How it works

{% content-ref url="/pages/OOSVh6vBXZvibK7ARFYh" %}
[stBTC basics](/stackingdao/the-stacking-dao-app/stbtc-liquid-btc-staking-with-btc-rewards/stbtc-basics.md)
{% endcontent-ref %}

{% content-ref url="/pages/qivrxV56YVGdilReoKJU" %}
[Depositing stBTC](/stackingdao/the-stacking-dao-app/stbtc-liquid-btc-staking-with-btc-rewards/depositing-stbtc.md)
{% endcontent-ref %}

{% content-ref url="/pages/iZqZkL0JGCxEtI5qhseb" %}
[Withdrawing from stBTC](/stackingdao/the-stacking-dao-app/stbtc-liquid-btc-staking-with-btc-rewards/withdrawing-from-stbtc.md)
{% endcontent-ref %}