stSTX Basics
Learn how stSTX compounds STX staking rewards while remaining usable across Stacks DeFi.
stSTX is a liquid staking token backed by STX. Users deposit STX and receive stSTX at the current conversion rate. Stacking rewards are compounded into the assets backing stSTX. As rewards accrue, each stSTX represents more STX.
How stSTX works: 1) Deposit STX through Stacking DAO. 2) Receive stSTX at the current conversion rate. 3) The underlying STX participates in staking. 4) Rewards are compounded into the assets backing stSTX. 5) The stSTX-to-STX value ratio increases as rewards accrue. The token balance in a user's wallet does not need to increase for the position to compound.
Using stSTX — stSTX remains transferable and can be used across supported Stacks DeFi applications while the underlying position earns. Using stSTX in another application introduces that application's own smart-contract, liquidity, and market risks.
Fees and withdrawals — Liquid staking introduces smart-contract exposure and a fee on staking rewards. Current conversion rates, fees, withdrawal methods, available liquidity, and estimated timing are shown in the Stacking DAO app.
Key features:
Non-custodial – Users stay fully in control of their assets
Auto-compounding STX yield – Rewards are automatically reinvested into the smart contracts behind stSTX
Seamless staking – No two-week unstaking delay, no 90k STX minimum, no need to run a node, and instant yield on deposit
Most integrated Stacks asset – Use stSTX across major DeFi protocols including Zest, Bitflow, Velar, Arkadiko, and Hermetica
Flexible stSTXbtc<>stSTX switching – Easily swap between stSTX and stSTXbtc without needing to unstake. One-click swaps are available directly on StackingDAO.
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