sBTC Operations

This section covers the main operations in the sBTC system. These operations form the core functionality of sBTC, allowing users to permissionlessly move value between the Bitcoin and Stacks ecosystems.

1

Deposit

Converting BTC to sBTC.

• Increased Utility: Users can leverage their Bitcoin on the Stacks network by converting BTC to sBTC, providing access to smart contracts and decentralized applications (dApps) that are not natively possible on the Bitcoin network.

• DeFi Opportunities: By utilizing sBTC, users can participate in decentralized finance (DeFi) activities such as lending, borrowing, and earning yield on their assets.

• Cost Efficiency: Operating on the Stacks network might offer lower transaction fees compared to the Bitcoin network, making it cost-effective for conducting transactions and executing smart contracts.

• Interoperability: sBTC allows users to enjoy the benefits of blockchain interoperability, moving their value seamlessly between the Bitcoin and Stacks ecosystems.

• Network Security: Stacks enhance security by building on Bitcoin's robustness, providing an added layer of trust and reliability when using sBTC.

2

Withdrawal

Converting sBTC back to BTC.

• Liquidity Needs: Users might want to convert sBTC back to BTC to access the deep liquidity available on the Bitcoin network, facilitating easier and potentially faster transactions.

• Off-Ramping: Converting sBTC to BTC can allow users to withdraw their funds from the cryptocurrency ecosystem into fiat currency through exchanges that primarily support Bitcoin.

• Security Preferences: Some users might prefer holding their assets directly on the Bitcoin network due to its reputation for security and decentralization.

• Network Preference: Individuals may choose to operate exclusively within the Bitcoin network for its simplicity and widespread acceptance as a method of payment.