sBTC

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.