sBTC FAQ
sBTC Basics
How does sBTC work?
sBTC is a SIP-010 token on the Stacks blockchain that represents Bitcoin (BTC) in a 1:1 ratio. sBTC is always backed 1:1 against BTC.
The sBTC peg wallet is maintained and managed by a set of sBTC signers. This decentralized approach enhances security and reduces single points of failure. Read more about Stacker Signing here.
What is Bitcoin Finality, and why is it important?
Stacks and sBTC state automatically fork with Bitcoin. As such, all transactions settle to Bitcoin with 100% Bitcoin Finality. This protects users against attacks to sBTC via a hard fork. This is a critical security measure that aligns sBTC security with Bitcoin. Read more in the Stacks Documentation.
How does the Stacks Signer network improve security?
Signers are responsible for approving all sBTC deposit and withdrawal operations, ensuring the integrity of the system. With a requirement of 70% consensus for transaction approval, Signers maintain the protocol's liveness and security.
To launch sBTC, the Stacks community approved SIP-028, defining the criteria for selecting signers based on factors such as technical expertise, reliability, performance, and decentralization. An initial group of 15 institutional Signers has been chosen for Phase 1 to maintain simplicity and reduce operational risks. This group will expand over time as the protocol matures.
The list of sBTC signers is public and listed here.
What security measures have been put in place to ensure sBTC is safe?
sBTC is always backed 1:1 against BTC, and it's verifiably secure through threshold cryptography. sBTC removes the need for 3rd party custodian or trusted setup. Instead, BTC is secured by a decentralized signer set.
Partnerships with top-tier security experts have been established to ensure the protocol is fortified at every level:
Asymmetric Research: Asymmetric Research is a core security contributor. Known for their rigorous research and protocol audits, Asymmetric brings security expertise to sBTC to identify and mitigate potential vulnerabilities.
ImmuneFi: A robust bug bounty program incentivizes ethical hackers to uncover and address potential issues, adding an additional layer of defense.
3rd Party Audits: Independent audit reports are in progress for additional security reviews, ensuring the protocol is thoroughly vetted by external experts.
What sets sBTC apart?
Here are the main differentiating characteristics of sBTC:
sBTC is a true Bitcoin native product
sBTC is backed by respected leaders in the Bitcoin community (signer network)
sBTC's security is provided by a decentralized network of validators/signers rather than a single custodian, removing the need to trust a single entity or exchange
sBTC leverages 100% Bitcoin finality
sBTC's technology offers optimal UX and DevEx for an L2
sBTC is a fully transparent project/product working in the open with public code
Where can I learn more about the sBTC signers?
Read the "Selection of sBTC Signer Set" post for more information about each signer and their qualifications.
sBTC Rewards Program
Where does the yield paid in BTC come from?
The sBTC Rewards Program is powered by a group of Stackers "Stacking" STX to a designated reward address, contributing their BTC rewards to the program.
When Stacking STX, Stackers receive BTC through Stack's Proof-of-Transfer (PoX) consensus mechanism. For example, over a given 2-week period, the Stacks protocol has historically distributed around 10% APY to Stackers, paid in BTC.
To enable the sBTC Rewards Program, these stackers contribute the corresponding Proof of Transfer BTC rewards to the sBTC incentive pool. This BTC from the incentive pool is directly deposited into a smart contract that bridges the BTC to sBTC and distributes the rewards pro rata to sBTC holders.
The program is designed to increase sBTC liquidity and drive early usage of the protocol.
Here's a handy illustration to show the sBTC incentives design:
How are rewards distributed?
sBTC is automatically distributed every two weeks to the STX address used to enroll in your non-custodial wallet.
What do I have to do to be eligible for rewards?
To be eligible, you must enroll in the rewards program at bitcoinismore.org.
What level of rewards should I expect?
The level of rewards users can expect will vary based on the amount of STX in the rewards pool, the PoX yield rate, and the amount of sBTC that has been minted.
What is the difference between PoX Rewards and the sBTC Rewards Program?
PoX Bitcoin rewards are earned by Stackers who lock up their STX tokens to secure the Stacks network, a process that has been ongoing since the launch of Stacks.
The sBTC Rewards Program, on the other hand, offers additional BTC rewards specifically for early adopters who hold sBTC without requiring them to participate in network consensus or lock up any tokens.
Using sBTC
When will sBTC be available?
sBTC deposits first went live on December 16, 2024, quickly hitting the 1,000 BTC cap. The second cap will go live on February 25th, 2025, with withdrawals expected in March 2025.
Full decentralization of the Signer set will follow in a subsequent phase, gradually expanding beyond the initial 15 community-elected signers.
What wallets are supported for sBTC?
Xverse and Leather wallets are supported — two leading wallets with seamless integrations designed for Bitcoin and Stacks users.
In addition, Ledger and Asigna support sBTC.
We are actively working with institutional custodians, staking providers, and other 3rd party wallets to support sBTC. More will be announced.
Why is there a .01 BTC minimum for BTC to sBTC deposits?
A .01 BTC minimum is imposed for BTC to sBTC deposits to ensure the system does not get spammed by many smaller transactions. We are exploring reducing the deposit minimum for future phases.
What are the steps to use the sBTC Bridge and earn rewards?
In the Stacks Documentation, find a video and a more detailed walkthrough.
To interact with the sBTC protocol and mint sBTC, head to app.stacks.co and connect your non-custodial wallet with BTC ready to deposit.
Enter the BTC amount to convert to sBTC (app.stacks.co will guide you through this step).
Enter your Stacks receiving address to initiate the transfer (app.stacks.co will guide you through this step).
After your sBTC has been minted to your wallet, visit the rewards program site at bitcoinismore.org and connect your wallet. Then click the 'Earn Rewards' button. Read more in the Stacks Documentation.
Seamlessly start earning sBTC rewards. sBTC is automatically paid every two weeks to the STX address used to enroll in your non-custodial wallet.
Note: There is an initial lock-up period until withdrawals are activated in March. Following the lock-up period, sBTC can always be withdrawn.
How long will it take for my BTC deposit to confirm?
sBTC facilitates rapid movement between BTC and sBTC.
BTC to sBTC conversion can be completed within 3 Bitcoin blocks (under an hour).
sBTC to BTC conversion can be completed within 6 Bitcoin blocks (Approximately two hours)
Read more in the Stacks Documentation.
Why is the BTC locked until March?
sBTC will be rolled out over two main phases. The first phase focuses on the peg-in functionality. Phase 2 will activate the withdrawal functionality, which is expected to activate in March.
For security purposes, only the deposit/peg-in functionality will be activated in phase 1. The sBTC team is taking an iterative approach to ensure greater stability at launch. For more details on the sBTC launch plan, see here.
Why is there a cap on the total BTC pegged in?
A BTC cap will be implemented to ensure a smooth rollout process with a focus on security.
In addition, the BTC cap will give developers the time to focus on the sBTC user experience and integration with DeFi applications across the Stacks ecosystem prior to opening sBTC for all users.
Are there any associated fees with minting sBTC?
There are two transaction fees required to mint your sBTC. The first is set by the user manually when they initiate the deposit transaction within their wallet.
The second is a fee used to consolidate the deposit UTXOs into the single signer UTXO. This separate transaction fee happens automatically and is set to a max of 80k sats. This is automatically deducted from your minted sBTC. This is not a signer fee but a regular Bitcoin transaction fee.
Are there multi-signature solutions for sBTC?
Yes. Asigna provides a multi-signature solution for sBTC users.
Are custodians available to support sBTC?
At the moment, there is no custodian support for sBTC. However, we are actively working with institutional custodians to support sBTC.
Copper and BitGo already support Stacks and Stacking; however, we are working to prioritize SIP-10 and sBTC integration.
sBTC Troubleshooting
My Bitcoin transaction confirmed, but I'm not seeing the sBTC token in my wallet.
You may need to enable the display of the sBTC token within your wallet by clicking on 'Manage Tokens' and enabling sBTC.
I received an "Errors.Invalid_Transaction" error when using an Xverse Wallet
If you received a "Errors.Invalid_Transaction" error when using an Xverse Wallet, you may be using a "Nested SegWit" wallet. To resolve the issue, change your Xverse wallet to use the "Native SegWit".
sBTC still isn't showing up in wallet after 3 Bitcoin blocks. How much longer do I have to wait?
BTC to sBTC conversions are typically completed within 3 Bitcoin blocks. Due to the speed of Bitcoin blocks, deposits can take up to two hours to see sBTC in your wallet.
However, there may be a lag with your Leather or Xverse wallet where the sBTC will take another 20 minutes to show up in the wallet.
I didn't receive a confirmation that I enrolled in the rewards program. How can I ensure I'm enrolled?
Visit bitcoinismore.org. On the enroll page, when your wallet is linked, it will say enrolled if you are enrolled in the program.
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