How Stacks Wins

Community
#1

Hey Folks,

We had a great conversation yesterday as part of the Stacks roadmap series where we started exploring the product features and north star metrics we want to align on as a community.

Based on that call, I wrote up some thoughts on a high level vision for the Stacks network, what to prioritize over the next 18 months, and how we’ll win. This post is meant to kick-start the discussion and I hope others weigh in on the roadmap ideas you’d like to see added. See this post for a format you can use to share ideas and proposals on the forum.

Thanks to Mitchell, Alex, Diwaker, Adriano, Tycho and others for reviewing this post and adding their feedback!

TLDR:

  • Stacks is Bitcoin’s speed & programmability layer, enabling new use cases on the world’s most secure blockchain.
  • sBTC will be the best programmable asset to power the Bitcoin economy by leveraging Stacks’ connection to Bitcoin and the security of it’s network.
  • Stacks will win by first winning the Bitcoin DeFi space and then using that liquidity and user base to lead the Bitcoin economy.

The last year has reaffirmed what the Stacks community has known for years: that Bitcoiners want to do more with their Bitcoin.

The amount of BTC supply in bitcoin native protocols surpassed $30 billion in Total Value Locked (TVL) as opportunities to earn yield and unlock liquidity came to market. Yet, despite this growth, the amount of BTC circulating in Bitcoin layers remains just over 1% — a tiny fraction of the overall supply.

We are building a world where Bitcoin is the base layer of the digital economy due to its properties of security and decentralization. By 2035, trillions of dollars of economic value will settle onto the Bitcoin network and BTC will be used as a reserve asset for capital markets around the world.

It’s clear what is needed to unlock this: the programmability and speed of a next generation chain, built on top of and secured by Bitcoin. This is Stacks.

The launch of sBTC and the Nakamoto upgrade last year were the first major step forward - allowing for seamless, secure onchain Bitcoin transactions. Next, we’ll deliver on the rest of the vision and unlock Bitcoin’s full potential by growing Stacks’ network effects, increasing it’s speed/usability, and staying at the forefront of secure, decentralized programmability.

:large_orange_diamond: The Orange Wave || How we’re getting there

Double Down on the Stacks DeFi Ecosystem

Today, Stacks has the largest Bitcoin-native ecosystem of applications and is the #7 fastest growing developer ecosystem according to Electric Capital. With the launch of sBTC, we’re excited to double down on the growth of the ecosystem to expand to new users and bring the next generation of Bitcoin capital onchain.

The key use cases for Bitcoin DeFi are the heart of Stacks and are required for other novel use cases to flourish. These core elements must exist on a layer directly secured by Bitcoin itself:

  • Bitcoin Yield Generation [Stacking, StackingDAO, Hermetica, etc.]
  • Lending and Borrowing [Zest & Granite]
  • DEXs / Scaling Runes, L1 Assets [Bitflow, ALEX, Velar]

There is demonstrated demand for these core use cases and strong evidence that DeFi liquidity across these verticals is critical for enabling an ecosystem flywheel. This creates a better trading experience, minimizes slippage, and helps attract new users to Stacks.

What We’re Doing To Make it Happen
:ocean: Liquidity Growth - Lift the sBTC cap, enable users to buy sBTC at exchanges, withdraw their BTC directly onto Stacks, and drive on + off-chain liquidity

:brick: DeFi Custody Integrations - Stacks already has great wallets + multisigs available, but we’ll enable more SIP-10 integrations with custody and infrastructure providers to unlock stacking, sBTC minting and DeFi connectivity.

:dollar: Tier 1 Stablecoin - Seamlessly moving between fiat and BTC is key for many transactions - we’ll bring a Tier 1 stablecoin on to make this happen.

:chart_with_upwards_trend: Capital - Create the pools of capital necessary to fund builders, integrations, and TVL growth.

Expand Bitcoin Accessibility via sBTC

sBTC’s unique design will allow it to attract huge pools of bitcoin capital. Built upon a decentralized foundation, with no custodians, and secured at the consensus layer by the entire Stacks network, sBTC will unlock new opportunities by creating a developer ecosystem that enables rapid iteration on new technologies.

At a high level, there are two critical tracks to ensure Stacks wins the Bitcoin economy long-term.

  1. sBTC must always be the most secure and efficient way to use BTC. sBTC’s design will continually evolve by embracing the capabilities that deliver the fastest, cheapest transactions with the most minimized trust assumptions. We’re doing that today by continuing to decentralize the sBTC signer set, and designing the next version based on a 1-of-n bridge.
  2. sBTC must be ubiquitous, like BTC. Successful economies are based on network effects and liquidity and for Stacks to succeed, it must be interoperable with the broader crypto ecosystem.

As an ecosystem we must always be at the forefront of Bitcoin innovation, ensuring that sBTC reflects the latest advancements of Bitcoin technologies.

What We’re Doing To Make it Happen
:orange_circle: Speed + Reliability - Continuing to press on the path to 100% <5s blocks, secured by Bitcoin

:bridge_at_night: Enable Integration and Bridge to Stacks - Turn Axelar live, finish additonal bridges (in progress), and build great SDKs for integration

:mag: Leading Edge R&D - 1/n Bridge security for sBTC toward unilateral exit

Accelerating Hyper-Bitcoinization

By unlocking Bitcoin’s full potential through programmability, Stacks empowers users, developers, and institutions to seamlessly participate in the Bitcoin economy. The recent launch of sBTC will serve as a catalyst enabling Bitcoin liquidity that fuels DeFi growth, cross-chain interoperability, and novel financial applications. With plans focused on liquidity expansion, user onboarding, and infrastructure upgrades, Stacks will create a sustainable flywheel that will drive Bitcoin adoption at scale.

Over the next few weeks, we will align on the specific features and products we need to build in order to execute on that vision. Be sure to participate in future roadmap discussions and share any ideas you have here on the forum.

Onward,
Andre

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#2

Love this, thanks for synthesizing so much Andre! In a good way, this breakdown is unsurprising in its contents. Doubling down on the key use cases and builders on Stacks to feed everything else is the path forward - Bitcoin DeFi will be a catalyst for growth of all kinds on the network. I think the focus you have on use cases that are particularly unique to and/or are simply much better on Stacks because of how Stacks works is a good refinement/next chapter to last year’s more general narrative of Bitcoin L2s.

I also wanted to give a shout-out to all the builders who joined the Roadmap Spaces earlier this week. There is already at least some clear/obvious consensus on what’s important next and it aligns nicely with this product vision/how Stacks wins. I also wrote up some of my own thoughts on important things ahead that I think are also all very aligned with what you’ve laid out if you’re keen to check it out :).

1 Like
#3

Thanks, your summary is much appreciated.

I am new to Stacks, just a month in fact. I’ve been in Bitcoin since 2011 and while I was aware of Stacks I never felt incentivised to look into it further. I knew I could earn BTC by stacking STX but couldn’t see the logic of selling some of my Bitcoin to buy STX in order to earn BTC - especially as I would be foregoing potential Bitcoin gains in the process.

So what changed my mind? When I read about the launch of sBTC and realised its potential as a Bitcoin L2 tool. What stood out to me was the fact I could then participate in yield opportunities without losing the value of my Bitcoin - the most important thing!

The sBTC launch really piqued my interest so I began to read everything I could on Stacks and minted some sBTC in the first round - in order the test the process.

Since then I have bought some STX (quite a bit actually!) and locked it via the Xverse wallet. My reason for doing so is based on my view that sBTC could be a winner, and if it grabbed my “Bitcoin OG” attention, then it could very likely do the same to others, and as a result boost the price of STX during this bull year.

I’ve spent the last couple of weeks getting familiar with the Stacks ecosystem and community - as being just a Bitcoin “holder” all these years, DeFi is new to me. I’m impressed by the enthusiasm I see and possibilities that exist.

I’m hooked, so to speak :slight_smile:

3 Likes
#4

Hi Andre! I appreciate you synthesizing everything. Stacks will win with DeFi. Me and the DeFi WG are committed to making this happen :orange_square:

Here are the near-term focus areas for how Stacks wins DeFi (now):

  • Liquidity for our builders -$10mm infused into the two most critical pools. It is crucial for users to have low slippage and enough depth on the pools.
    • stx <> sbtc [currently 3.21mm]
    • stx <> aeusdc [currently 1.04mm]
  • Incentive budget – a critical budget of $500k for defi apps to apply and receive incentives that can be used to boost yields across protocols for user acquisition. The goal is to bolster projects to achieve their roadmap goals, show growth, and ultimately bring more users into Stacks DeFi.
  • Market Making - onchain market makers to manage spreads across the DEXs for the significant assets (STX, sBTC, aeUSDC, etc). One is currently onboarding, and the DeFi WG is looking for the next one. The market makers will manage spreads & liquidity across the DEXs and will be farming across the defi apps.
  • Liquid Deployments - much of the Stacked STX isn’t in DeFi. We’ll work in tandem with the sBTC GTM group to ensure that all sBTC holders understand the various yield opportunities and are deploying sBTC into liquid protocols.

This list is only the beginning right now. After these milestones, the DeFi WG will work on the next set of needs (more LPs, liquidity, perps, etc.).

The job will continue, and the bitcoins will flow :ocean:

Upwards,
Rena

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#5

“Find out what you’re good at and double down” - Scott Galloway.

Stacks wins by playing to its strengths—not by trying to be everything, but by doubling down on what makes it unique and valuable.

:rocket: Marketing & Narrative

  • Stacks = Bitcoin’s Smart Contract Layer—this message needs to be crystal clear and everywhere.
  • We win by owning the Bitcoin economy narrative, making it obvious that Stacks is the best place to build on Bitcoin—secure, scalable, and decentralized.
  • sBTC needs to be positioned as the dominant Bitcoin-backed asset, the go-to for DeFi, payments, and beyond.

:chart_with_upwards_trend: Sales & Adoption

  • Focus on high-value integrations—getting sBTC into major DeFi protocols, exchanges, and wallets. Every integration is an adoption multiplier.
  • Make it frictionless for builders—if we want devs to come, we need better tooling, smoother onboarding, and incentives that drive real usage.
  • Attract big players—funds, institutions, and power users need to see Stacks as a place where real Bitcoin liquidity lives.

:key: Strategy & Execution

  • Lean into Bitcoin’s strengths—security, liquidity, and trust. sBTC and Nakamoto bring finality and security—sell that hard.
  • Interoperability is key—Bitcoin is becoming multi-layered, and Stacks should be the most connected, whether that’s to Lightning, Ordinals, Runes, or other Bitcoin layers.
  • No distractions, no fluff—we should be obsessed with real-world traction, not just speculative hype.

:hammer_and_wrench: Products & Ecosystem

  • sBTC Utility First—drive use cases in DeFi, payments, and integrations.
  • Fast, scalable, and easy to build on—Stacks should be the best developer experience for Bitcoin smart contracts.
  • Community-driven innovation—giving builders and contributors a clear path to ship and scale their projects.

:zap: Regaining Our First-Mover Advantage

Stacks was here first, but being first isn’t enough—we need to move faster and execute harder than the competition. Other Bitcoin L2s are catching up, but they lack Nakamoto, they lack sBTC, and they lack a thriving builder community.

  • sBTC needs to dominate—it should be the Bitcoin-backed asset across all of crypto.
  • First-mover means nothing if we don’t out-ship, out-integrate, and out-innovate—we already have the foundation, now it’s about momentum and network effects.
  • Bitcoin DeFi is up for grabs—Stacks has the best shot at winning it, but we need execution, urgency, and focus.

:point_right: The bottom line: We win by being the default Bitcoin layer for smart contracts, assets, and innovation. The race for Bitcoin L2 dominance is on—let’s take back the lead.

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