Stacks works with established custody, validation, and security providers across the Bitcoin ecosystem.
Stacks offers a Bitcoin staking product designed for institutions seeking BTC-denominated yield without moving Bitcoin off Bitcoin L1. Yield scales based on configurable exposure to STX, allowing institutions to balance return targets with custody and risk requirements.
Bitcoin Staking with Stacks
Bitcoin remains on Bitcoin
Bitcoin is committed on Bitcoin L1, preserving native custody and settlement guarantees.
BTC-Denominated yield
Yield is earned in Bitcoin, without wrapping, rehypothecation, or synthetic assets.
Capacity expansion via STX
Institutions may deploy STX to increase staking capacity and yield potential.
The institutional Bitcoin yield gap
Bitcoin lacks native yield primitives suitable for institutional mandates
Existing yield strategies introduce custody, rehypothecation, or execution risk
Institutions require defined risk priority and BTC-denominated returns
Architecture & Security
Security partners
How it works
Bitcoin Staking is an upgrade to the Stacks Proof-of-Transfer consensus mechanism. Participation is structured through protocol bonds: a paired commitment of BTC on Bitcoin L1 and STX on Stacks, locked together for one 6-month bonding period.
Dual-asset lock. BTC is locked under the participant's own keys via a standard Bitcoin timelock (OP_CHECKLOCKTIMEVERIFY). STX is locked on Stacks for the same period.
Capacity auction. A monthly on-chain auction allocates BTC capacity. Each bid specifies a BTC amount and the lowest yield the participant will accept.
Weekly BTC payouts. Yield is paid in BTC and distributed weekly throughout the bonding period.
Optional early exit. Participants may unlock BTC before period end, forfeiting remaining yield. Paired STX remains locked for the full term.
How yield is generated
Bitcoin Staking is an upgrade to the Stacks Proof-of-Transfer consensus mechanism. Participation is structured through protocol bonds: a paired commitment of BTC on Bitcoin L1 and STX on Stacks, locked together for one 6-month bonding period.
Dual-asset lock. BTC is locked under the participant's own keys via a standard Bitcoin timelock (OP_CHECKLOCKTIMEVERIFY). STX is locked on Stacks for the same period.
Capacity auction. A monthly on-chain auction allocates BTC capacity. Each bid specifies a BTC amount and the lowest yield the participant will accept.
Weekly BTC payouts. Yield is paid in BTC and distributed weekly throughout the bonding period.
Optional early exit. Participants may unlock BTC before period end, forfeiting remaining yield. Paired STX remains locked for the full term.
Risk and yield mechanics
Source of yield. BTC is spent by Stacks miners competing for STX block rewards and transaction fees, and is then distributed to eligible staking participants. This is the same mechanism that has distributed more than 4,200 BTC since January 2021.
Waterfall distribution. Active protocol bonds are paid the target yield rate first. Excess miner revenue is then shared between STX-only stakers and a reserve fund.
No slashing. Full BTC and STX commitments are returned at timelock expiry regardless of participant behavior, miner behavior, reserve fund availability, or network conditions.
Risk borne by participants. STX price exposure during the bonding period, proportional to the required pairing ratio
Security partners
Compliance & Regulatory Context
STX completed a Reg A+ qualification process in the United States
Designed to integrate with qualified custodians
Institutional onboarding aligned with compliance and reporting requirements
.avif)
