> 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/ststxbtc-liquid-stx-staking-with-btc-rewards/ststxbtc-basics.md).

# stSTXbtc Basics

Learn how stSTXbtc lets STX holders earn BTC rewards while retaining a liquid token.

**stSTXbtc** is a liquid staking token backed by STX. Users deposit STX and receive stSTXbtc at the current conversion rate. The position earns BTC rewards, with delivery as BTC or sBTC chosen by the user.

How stSTXbtc works: 1) Deposit STX through Stacking DAO. 2) Receive stSTXbtc at the current conversion rate. 3) The underlying STX participates in staking. 4) Choose whether rewards are delivered as BTC or sBTC. 5) Keep stSTXbtc transferable and usable across supported Stacks DeFi applications.

Using stSTXbtc — stSTXbtc can be used in supported DeFi applications, including as collateral on Zest Protocol, while the position continues earning. Using stSTXbtc in another application introduces that application's own smart-contract, liquidation, liquidity, and market risks.

Fees and withdrawals — Liquid staking introduces smart-contract exposure and a fee on staking rewards. Current conversion rates, reward options, claiming, switching, withdrawal methods, fees, and estimated timing are shown in the Stacking DAO app.

**Key features:**

* **Non-custodial** – You stay in control of your funds at all times
* **Ongoing BTC yield** – Earn Bitcoin rewards daily while keeping your STX unlocked and usable
* **All the benefits of liquid staking** – No two-week wait to unstake, no 90k STX minimum, and instant yield on deposit
* **Flexible stSTXbtc<>stSTX switching** – Easily swap between stSTX and stSTXbtc without needing to unstake. One-click swaps are available directly on StackingDAO.

{% hint style="info" %}
Depositing stSTXbtc on Zest lets you continue earning daily sBTC staking rewards, claimable anytime on the StackingDAO site
{% endhint %}