Explainers
Stacking liquid tokens
May 15, 2025
Disclaimer: Leather does not create or control liquid Stacking protocols. Users should review the mechanics, risks, and redemption conditions of any token before participating. Liquid tokens have different risks and redemption mechanics. Make sure to understand how each protocol handles reward payout, liquidity, and price stability before using them.
Liquid Stacking tokens are special assets that represent your deposited STX in a liquid Stacking protocol.
Instead of locking STX directly with the Stacks protocol, you transfer it to a third-party protocol that performs Stacking on your behalf and issues you a liquid token like:
stSTX (from Stacking DAO)
LiSTX (from LISA)
Other variants depending on the protocol
These tokens reflect your position in the protocol and accrue BTC rewards proportionally over time.
Why use a liquid Stacking token?
No lockup — You keep access to a tokenized version of your STX
DeFi compatibility — Use the token in swaps, LPs, or lending apps
Composability — Stack yield with other yield sources
Exit flexibility — Redeem the token for STX and rewards based on protocol terms
Interacting with liquid tokens in Leather
Leather displays balances of known liquid Stacking tokens and supports:
Viewing your rewards and balances
Connecting to apps that accept them
Sending or trading the token like any other asset
