An overview of stSTX, a new solution for bringing Liquidity for stacked tokens on Stacks by Stacking DAO.
A liquid stacking protocol that gives users an auto compounding tokenized representation of stacked STX (stSTX). Think Lido on Stacks.
Unlocked Liquidity. Use stSTX freely all around Stacks while earning staking rewards for the stacked STX.
Help Secure The Network. Distribute your stake to Proof of Transfer to get stacking rewards, while also decentralizing Stacks.
Instant Unstack. Skip the unstack PoX period and get your STX back at any time.
Open source & audited. Stack your STX through our audited and open-sourced smart contract.
stSTX has the potential to become a key primitive for the nascent Bitcoin DeFi ecosystem, especially as collateral. Borrowing against stSTX will be the most tax efficient way to get liquidity against STX for STX holders. Learn More
Unlock your STX with stSTX, the most integrated liquid stacking token in the Stacks ecosystem and Earn more REAL yield with Bitflow Liquidity Pools.
This collaboration with StackingDAO brings to the forefront a unique opportunity for users to amplify their yields:
🔹 Stack and Earn: Users can stack their STX tokens on StackingDAO and start earning rewards immediately.
🔹 Boost Your Yield with Bitflow: By providing liquidity to the Bitflow stSTX pools, users can earn additional yield in STX.
🔹 Maximize Earnings through Escrow: Escrowing stSTX-STX LP Tokens in Bitflow's liquidity pools further enhances yield through trading fees.
🔹 Flexibility in Trading: Engage in stSTX-STX swaps on Bitflow, utilizing stSTX across the Stacks ecosystem.
This strategic partnership marks a significant milestone in the advancement of Bitcoin DeFi. It not only increases decentralization but also incentivizes real yield generation, enhancing the utility of stacked STX tokens.
Boosting Liquidity and supporting the StackingDAO
Inspired by the success of liquid staking protocols on Ethereum, Solana, and other platforms, StackingDAO will implement a 2% sell tax on stSTX sales for STX on Bitflow. The revenue generated from this sell tax will be dedicated to enhancing the liquidity of the stSTX-STX trading pair on Bitflow.
In practical terms, this means if a user sells 100 stSTX on Bitflow, 2 stSTX from the sale will be allocated to StackingDAO. This contribution is specifically aimed at boosting the liquidity of the stSTX-STX pair. Once this pair achieves a substantial level of liquidity, StackingDAO plans to discontinue these sell taxes.
Important: StackingDAO only collects sell tax on stSTX—>STX sales, no taxes are collected for for STX —> stSTX swaps.
Stacks is a smart contract layer tethered to the Bitcoin blockchain, allowing the creation and execution of smart contracts that benefit from Bitcoin's security and immutability. The native cryptocurrency of this layer is Stacks (STX), which is utilized for transaction fees and smart contract execution.