Hey everyone — I’m excited to share the Dual Stacking overview, outlining the next phase of Bitcoin yield on Stacks.
Later this month, we’ll launch v1 of Dual Stacking. This marks an important milestone: it’s the first step toward a long-term, sustainable BTC yield mechanism, built directly on Stacks with sBTC. Coinciding with this launch, the existing sBTC rewards program will be sunsetting.
At a high level, Dual Stacking lets Bitcoin holders earn BTC-denominated yield through sBTC.
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You can mint sBTC and earn a base BTC yield (approx. 40-50 bps).
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You can boost your yield up to 10x by stacking STX or deploying sBTC into DeFi.
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BTC yield is distributed based on a new token-economic model described in the overview.
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In this first version, sBTC deployed into whitelisted DeFi protocols will receive the same max yield as stacking the greatest amount of STX.
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As we go, we’ll refine the model based on real-world data to ensure optimal performance and incentive alignment.
All rewards are distributed in sBTC, and everything runs on the existing decentralized signer network — no new trust assumptions or consensus changes required.
Long term, we’ll propose a token economic model that uses part of the yield from POX to provide the rewards for dual stacking while increasing the overall value for STX Stackers. As part of this launch we’re continuing to simulate that by the rewards coming from Stackers who have delegated their STX to a central pool, same as it has been for the last 9 months as part of the sBTC rewards program.
This upgrade represents a major step toward aligning Bitcoin capital and the Stacks economy. It makes Bitcoin productive while preserving its core principles of security and decentralization.
You can read the full overview here:
Dual Stacking Overview: Unlocking Sustainable Bitcoin Yield on Stacks (v1.0)
Excited to ship this and see BTC yield truly go Bitcoin-native. Get notified for when Dual Stacking goes live.
— Andre