Liquid Stacking lets you earn Bitcoin without giving up access to your STX—at least in principle. Instead of locking STX directly in the Stacks protocol, you transfer it to a liquid Stacking provider, which issues you a token (like stSTX, lSTX, etc.) that represents your deposited STX and yield entitlement.

This model comes with important conditions you should understand:

This transaction can’t be reversed

When you deposit STX into a liquid Stacking protocol, you are handing over custody to the protocol’s smart contract. To get your STX back, you’ll need to redeem it through that same protocol. Leather cannot reverse this transaction.

Research your protocol

The protocol determines how and when rewards are paid out. Each provider has its own rules for compounding, redemption, fees, and slashing. You must do your own due diligence to understand what happens under the hood.

Smart contracts govern everything

By participating in liquid Stacking, you grant the protocol permission to run Stacking operations on your behalf using a smart contract. This contract controls your assets while you hold the liquid token.

Benefits of liquid Stacking

• No lockup – You can exit by redeeming your token anytime (protocol rules apply)

• Yield + DeFi – The liquid token is usable in DeFi while still earning BTC

• Integrated – Leather supports viewing, tracking, and interacting with select liquid protocols