Stacking is a core feature of the Stacks blockchain that allows STX holders to earn Bitcoin (BTC) rewards by supporting the network’s operation. It’s an innovation made possible through Stacks’ unique Proof of Transfer (PoX) consensus mechanism, which anchors the Stacks blockchain to Bitcoin. In return for temporarily locking your STX, you receive BTC that is transferred to you by miners who compete to add new blocks to the chain.

What makes Stacking different from traditional staking systems in other blockchains is that the rewards come in Bitcoin, not STX or an inflationary token. This makes Stacking one of the only ways in the crypto ecosystem where you can earn BTC yield by putting another token (STX) to work. The Bitcoin you earn comes from Stacks miners, who spend BTC to participate in PoX consensus and secure the network.

In practice, there are two accessible ways to Stack your STX with Leather: pooled Stacking and liquid Stacking. Both methods allow you to participate without needing a large balance of STX or any advanced technical setup. Let’s take a closer look at how each of these options work.

Pooled Stacking is the most straightforward entry point for most users. Instead of meeting the full network minimum for Stacking on your own, you combine your STX with others in a pool. The pool operator handles the technical details—like running infrastructure and managing reward distribution—while you simply choose the amount of STX to commit and for how many reward cycles. Your STX is temporarily locked (you can’t transfer it while it’s stacked), but remains in your control throughout the process. When the cycle ends, your STX unlocks automatically, and your share of BTC rewards is sent to your wallet.

Pools offer important flexibility. You can choose between custodial and non-custodial pools, fixed or flexible locking periods, and different reward strategies. Leather integrates with top pool providers, so you can browse, compare, and participate in just a few clicks—without leaving the wallet.

Liquid Stacking, on the other hand, is designed for users who want to stay active with their assets. When you use a liquid Stacking protocol, your STX is still locked for the purpose of PoX, but you receive a liquid token in return—typically something like stSTX or stkSTX. This token represents your stacked position and accrues BTC yield, but it also remains transferable and usable across DeFi apps on Stacks.

With a liquid token in hand, you can do things like trade, lend, or use it as collateral, all while continuing to earn your share of Bitcoin rewards. Liquid Stacking is made possible by decentralized protocols built on top of Stacks, and it introduces new possibilities for yield strategies without losing out on core PoX rewards. Leather makes this available by integrating directly with liquid Stacking partners, letting you access this feature securely from your wallet.

There are trade-offs between the two methods. Pooled Stacking is simple and predictable—you lock your STX and receive BTC rewards directly, with no need to manage or track a synthetic token. Liquid Stacking offers more flexibility, but introduces smart contract risk and variability in token value depending on market conditions. The right approach depends on your personal strategy and how you want to interact with your assets.

Regardless of which method you choose, Stacking through Leather is a non-custodial process. Your private keys and funds remain in your control, and Leather acts as the secure interface that connects you with the protocols and pools that make Stacking possible. Whether you're seeking simple Bitcoin rewards or more advanced DeFi strategies, Leather gives you the tools to Stack confidently and securely. Learn more: https://www.stacks.co/learn/stacking