Stacks has launched sBTC on its mainnet, bringing programmability and scalability to Bitcoin. This launch enables developers to build decentralized applications while preserving Bitcoin’s security and trust. Stacks is designed to extend Bitcoin’s capabilities without altering its core protocol. This launch is a major step toward building a decentralized, on-chain Bitcoin economy.
What is sBTC?
sBTC is a 1:1 Bitcoin-backed asset that allows for the trust-minimized movement of BTC between Bitcoin and the Stacks Layer 2. It enables Bitcoin to become programmable, creating new opportunities for decentralized finance (DeFi) while preserving Bitcoin’s core principles of trust, security, and transparency.
Key features include:
- 1:1 Bitcoin backing.
- A distributed signer network to reduce reliance on single entities.
- 100% Bitcoin finality, secured by Bitcoin’s hash power.
- Transparent, open-source code.
Why Stacks Matters?
Bitcoin’s base layer has structural limitations. While secure, it lacks scalability and programmability. Stacks addresses these gaps by leveraging Bitcoin as a secure base layer while introducing rapid block times and programmable functionality. Using Proof-of-Transfer (PoX) consensus, Stacks settles all transactions to Bitcoin. This mechanism ensures Bitcoin’s security without modifying its base layer.
Controlled Launch Phase
The initial rollout of sBTC focuses on controlled liquidity. A deposit-only feature allows users to contribute up to 1,000 BTC, with rewards of up to 5% annually distributed every two weeks in as sBTC Launches. This phase is designed to provide developers with the tools to build applications with sBTC, paving the way for broader user adoption.
What’s Next for sBTC?
In Q1 2025, Stacks plans to expand sBTC’s functionality, introducing withdrawals and increasing liquidity caps. The network aims to evolve into a fully permissionless signer system.
As sBTC launches on Stacks Mainnet, they collectively signal a new era for Bitcoin. With sBTC, Bitcoin transitions from being a static store of value to a programmable asset. This innovation positions Stacks as a leader in the Bitcoin DeFi space, unlocking billions in latent capital and creating new opportunities for developers and users alike.
