sBTC

Explainers

Minimum commitment for sBTC rewards

May 18, 2025

Disclaimer: Leather does not control the minimum commitment amounts or reward eligibility criteria for external protocols. Users are responsible for reviewing requirements before committing assets.

sBTC is a Bitcoin-backed asset on the Stacks blockchain that enables BTC holders to participate in on-chain DeFi opportunities. When using sBTC to earn rewards—through lending, liquidity provision, or other strategies—some platforms require users to commit a minimum amount to be eligible.

Why minimums exist

Minimum commitment requirements are typically set to:

  • Prevent spam and microtransactions that could clog contract systems

  • Ensure users receive a meaningful share of rewards

  • Align protocol incentives with sustainable capital deployment

These thresholds are determined by each individual protocol and may change over time or vary by pool.

Common examples

  • A lending platform may require a minimum of 0.01 sBTC per strategy

  • A liquidity pool might enforce a higher entry point during bootstrapping phases

  • Some reward programs may scale incentives based on tiered commitment levels

Users should always consult the protocol’s documentation or on-screen guidance to know the current requirements.

How Leather helps

When you connect your Leather wallet to a supported DeFi app, any applicable minimums are displayed before you commit funds. This helps avoid committing below the threshold and missing out on rewards.

Leather provides secure access to these strategies but does not enforce or set the terms of eligibility.

Important considerations

Committing less than the required minimum will usually result in zero rewards, even if the transaction succeeds. This is not an error—it's a rule enforced by the protocol itself.