Explainers
sBTC Rewards
May 15, 2025
Disclaimer: Leather does not operate the sBTC bridge or any yield protocols. Users should review each app’s documentation before committing assets. Leather gives you secure access to these opportunities but does not control how rewards are structured or distributed.
sBTC is a Bitcoin-backed asset on the Stacks blockchain. It brings native BTC into a smart contract environment by allowing users to lock BTC via a decentralized bridge and receive sBTC 1:1 on Stacks.
Once minted, sBTC can be used in DeFi protocols that offer yield through lending, liquidity provision, or collateral-based strategies.
How sBTC rewards work
sBTC itself does not generate rewards passively. However, when supplied to certain protocols, users may earn incentives in the form of:
BTC (on select platforms)
sBTC or STX
Other protocol-specific tokens
Rewards depend on how and where sBTC is deployed. Apps may offer incentives for:
Providing liquidity to sBTC trading pairs
Supplying sBTC to lending markets
Participating in early bootstrapping programs for new DeFi apps
Accessing rewards with Leather
With Leather, you can:
Bridge BTC and mint sBTC
Connect to protocols like ALEX and Zest Protocol
Commit sBTC to supported strategies
Track your balances and rewards in your wallet
These protocols are third-party and independent from Leather. Reward mechanisms, lockups, and risks vary by platform.