With the first phase of sBTC’s mainnet launch, Leather users will also have access to a unique sBTC rewards program run by Bitcoin L2 Labs.
Leather users can participate in this program from within their extension (v.6.56) to complement earn opportunities that are currently available with the Stacking feature. They simply have to visit our Earn page to do so.
What Is sBTC?
sBTC is a non-custodial Bitcoin-backed asset on the Stacks Bitcoin L2 that maintains a 1:1 peg to BTC. Unlike other tokenized BTC assets that rely on centralized bridges or trusted custodians (like WBTC), sBTC operates through a decentralized signer set.
This means that your BTC remains secure while you gain even more access to applications built on Stacks. The goal is for sBTC to facilitate additional use cases for BTC, including:
Lending and borrowing BTC
Scaling Ordinals
Trust-minimized asset swapping
sBTC Stacking pools
That’s just the tip of the iceberg. Ultimately, sBTC will help users tap into the almost $2 trillion Bitcoin market, which has largely remained unlocked.
Is sBTC Safe?
Security is one of Bitcoin’s biggest pillars, meaning that sBTC is rooted in Bitcoin’s security principles and design:
sBTC maintains a 1:1 ratio with BTC, ensuring that your BTC is always fully backed against BTC.
All sBTC transactions settle on Bitcoin with 100% Bitcoin finality
Withdrawals back to BTC (which will be enabled in February 2025) will be handled by a decentralized set of validator nodes
Additionally, Stacks collaborates with top-tier partners such as Asymmetric Research and Immunefi to maintain rigorous and thorough security standards
Together, these factors ensure that sBTC can not only be securely deployed in various yield and DeFi products but also be one of the safest assets to use when interacting with Stacks apps.
The Opportunity: Earning Rewards on Bitcoin
Bitcoin by itself doesn’t generate yield. Traditional tokenized BTC assets also often fall short due to poor user experiences and centralization (WBTC’s reliance on a centralized bridge is a good example).
By minting sBTC and participating in the rewards program (run by Bitcoin L2 Labs) with your Leather wallet, you can earn up to 5% APY, obtaining BTC rewards.
Deposit and Bridge BTC to Enroll
Leather users who want to participate in Bitcoin L2 Labs' sBTC rewards program will need to do the following:
Deposit BTC into their Leather wallet
Bridge BTC to sBTC in-app (a minimum amount of 0.01 BTC is required)
Enroll in the sBTC rewards program
Additionally, there is no additional service fee needed to enroll your sBTC for rewards. While a typical STX network transaction fee is still required, Leather is sponsoring these swap transactions (and swap transactions from sBTC to any other Stacks fungible token) for users who don’t have the amount of STX needed in their wallet.
sBTC: A New Era For Bitcoin Users
The first phase of sBTC’s mainnet launch is a turning point for Bitcoin holders who want new ways to put their BTC to use while staying true to Bitcoin’s decentralized ethos. By using Leather to bridge your BTC to sBTC, you gain access to a secure, decentralized network that empowers you to earn rewards without compromising on safety.
As the Stacks ecosystem continues to grow, so do the opportunities for sBTC holders. Earn is just one example of how the asset will empower Bitcoin holders to explore new possibilities in DeFi and unlock the full potential of the BTC in their wallets.
