stSTX Basics

stSTX is the tokenised representation of stacked STX, which can be used across Stacks dApps while earning up to 10% APY in auto-compounding STX rewards.

Users deposit STX to mint stSTX, which automatically accrues in value along with the Stacking rewards (stSTX = deposited STX + STX rewards). Then, they can use stSTX across DeFi to earn more yield & points and swap back to STX anytime.

Since its launch in December 2023, stSTX has become a key primitive for the nascent Stacks DeFi ecosystem, accounting for almost half of Stacks TVL and making Stacking DAO the largest DeFi protocol in the ecosystem.

Over 40% of stSTX liquidity has been deposited across DeFi protocols such as Zest, Bitflow, Velar, Hermetica, and Arkadiko, facilitating the bootstrapping of the Stacks DeFi ecosystem.

Key features:

• Non Custodial Solution

• Auto-Compounding STX Yield: STX rewards are seamlessly reinvested into the smart contracts supporting stSTX. Ideal for those aiming to accumulate STX, viewing it as a high-beta play on BTC.

• Seamless Stacking Experience: No waiting 2 weeks to unstack, no 90k STX minimum deposit, no need to run a Stacks node, and get immediate yield

• Most integrated asset in Stacks: use stSTX on Zest, Bitflow, Velar, Arkadiko, and Hermetica

• stSTX<>stSTXbtc switch: Seamlessly switch between liquid stacking tokens without the need to unstack. One-click swaps will be available directly on Stacking DAO.

As Stacking rewards are continuous and stSTX auto-compounds, the stSTX ratio doesn’t increase in a single jump at the end of a Stacking Cycle.

Instead, it rises gradually over the next two weeks of a Cycle, updating every 70 Bitcoin blocks ( ~12 hours).