sBTC Kicks Off on Stacks Mainnet: Details

sBTC, a new-gen fully programmable asset backed by Bitcoin (BTC) at 1:1 rate, reached its mainnet rollout phase. Starting Dec. 17, 2024, sBTC works on Stacks in deposit-only mode, while full functionality is expected to arrive in the coming months.

Bitcoin-backed asset sBTC launches on Stacks

sBTC, a DeFi-centric, 1:1 Bitcoin-backed asset by Bitcoin L2 Labs, the organization driving Stacks core development and Bitcoin L2 adoption, debuted today in mainnet version. Following the game-changing Nakamoto upgrade, this deployment is of paramount importance to Bitcoin's programmability.

sBTC enables the decentralized movement of BTC in and out of Bitcoin (BTC) layers. With this upgrade, Stacks network finally achieves 100% Bitcoin (BTC) finality.

sBTC now enables holders to access decentralized finance (DeFi) applications while maintaining Bitcoin's core security principles. 

Muneeb Ali, Stacks founder, expects institutional capital to fuel Bitcoin's L2 ecosystem with entirely new mechanisms unlocked by the native sBTC release:

Getting Bitcoin capital into the hands of builders with sBTC is a pivotal moment for the Stacks L2 and Bitcoin economy, and has been a culmination of months of work following the Nakamoto upgrade. Unlike locking BTC in proof of stake systems, sBTC is fully expressive and enables an on-chain bitcoin economy. sBTC can be deployed in a variety of applications like decentralized lending, DEXes, AI bots, etc., and is the only programmable bitcoin asset that inherits 100% bitcoin hash power security.

From lending and borrowing through protocols like Zest, trading assets on (DEXes) like Bitflow and ALEX, or creating an AI agent on aiBTC, sBTC unlocks new opportunities for developers and users in the emerging Bitcoin economy.

Inaugural mainnet iteration debuts with 1,000 BTC deposited

Andre Serrano, Head of Product at Bitcoin L2 Labs, also sees sBTC as a pivotal element of the upcoming DeFi-on-Bitcoin ecosystem:

sBTC is a major milestone for the Bitcoin ecosystem. With sBTC, Bitcoin becomes highly capable beyond a store of value, unlocking the full potential of BTC in decentralized applications.

The initial mainnet phase introduces deposit-only functionality and a 1,000 BTC cap, allowing users to mint sBTC on the Stacks layer. The BTC cap provides liquidity for developers to utilize sBTC and for further integrations with institutional custodians and additional partners.

This cap will gradually increase to onboard more users as sBTC withdrawals become available in Q1, 2025, and the protocol progresses toward a fully open, permissionless signer set.

Within the framework of a rewards program, the first depositors can enjoy up to 5% APY in Bitcoin (BTC) while holding the assets.