Liquid Stacking is a flexible evolution of traditional Stacking. In the original model, STX is locked for two-week cycles to earn BTC yield. Liquid Stacking allows users to maintain exposure and continue earning rewards, but with a transferable token that unlocks DeFi opportunities.

Protocols like Stacking DAO and LISA let users deposit STX and mint liquid tokens such as stSTX, stSTXbtc, or LiSTX. These represent your participation in Stacking and accrue BTC yield in real time. Some tokens compound STX-based rewards (like stSTX), while others deliver yield directly in sBTC (like stSTXbtc or LiSTX).

These liquid tokens can be used across DeFi platforms—including Velar, Zest Protocol, Bitflow, and ALEX—to provide liquidity, borrow assets, or earn additional incentives. With Leather, you can monitor your balances, mint or swap liquid Stacking tokens, and stay engaged in the Bitcoin ecosystem without losing flexibility.

Whether you're maximizing yield, managing liquidity, or building strategies around Bitcoin-native stablecoins or sBTC, Liquid Stacking offers a powerful way to stay Stacked—and active.