Protocols on Stacks are increasingly offering rewards for users who supply sBTC into smart contract strategies. These rewards can take different forms based on the protocol’s design and token ecosystem.

Common reward tokens

• sBTC – Programs like the sBTC Rewards Program (up to 5% APY) and Zest Protocol pay directly in sBTC to keep exposure Bitcoin-native.

• STX – Some DeFi apps use STX to reward sBTC-related activity, especially in bootstrapping phases.

• Native tokens – ALEX (via ALEX tokens), Bitflow, and Velar each offer their own governance or utility token as incentives.

How rewards are determined

Reward token types depend on factors such as:

• The type of pool (e.g., liquidity, lending, perps)

• The source of yield (e.g., swap fees, borrower interest, protocol emissions)

• Whether the program is promotional or long-term

For instance, ALEX might issue ALEX tokens to users of sBTC/USDA LPs, while Bitflow may route volume and return BTC-APY from aggregated trades.

Claiming and tracking rewards

Leather helps simplify the experience by:

• Displaying which token(s) are rewarded in each strategy

• Showing estimated yield metrics like APY

• Allowing users to track balances and eligibility without leaving their wallet

However, claiming mechanisms vary. Some rewards must be manually harvested in the connected app, while others may auto-compound.