sBTC is launched on Stacks Mainnet with deposit only functionality

Bitcoin L2 Labs, the development company behind Bitcoin layer-2 Stacks, has announced the mainnet launch of sBTC, Stacks’ BTC-backed 1:1 programmable asset.

sBTC enables the decentralized movement of BTC in and out of the Bitcoin layers. With sBTC, investors can access decentralized finance (DeFi) applications while maintaining Bitcoin’s core security principles.

Its launch on the mainnet follows Nakamoto’s upgrade, which introduced faster transaction speeds and a 100% Bitcoin purpose to the Stacks network. Implemented in October, the update provided the technical foundation for the successful launch of sBTC.

Deposit only mode

According to a press release sent to CryptoPotato, sBTC deposits will be available on the Stacks mainnet starting December 17, 2024, with withdrawals expected in March 2025.

L2 Labs noted that the initial phase of the sBTC launch introduces deposit-only functionality, allowing users to mint sBTC by depositing Bitcoin into Stacks. The platform has set a time limit of 1,000 BTC to manage liquidity and facilitate early development.

“The BTC cap provides liquidity for developers to use sBTC and for further integrations with institutional custodians and additional partners,” the platform stated in the statement.

According to L2 Labs, the initial cap will be gradually expanded to accommodate more users as sBTC withdrawals become available in the first half of 2025 and the protocol moves to a fully open, permissionless set of signers.

Prize for the first participants

Advantages reserved for early entrants. According to the statement, depositors will receive up to 5% annual Bitcoin rewards, paid in sBTC, simply for holding the asset.

The launch of sBTC marks a key moment for the Bitcoin ecosystem as it opens up new possibilities for developers and users to build and use DeFi applications on the Bitcoin network.

Commenting on the latest release, Andre Serrano, Head of Product at Bitcoin L2 Labs, said:

“sBTC is an important milestone for the Bitcoin ecosystem. With sBTC, Bitcoin becomes much more capable than a store of value, unlocking the full potential of BTC in decentralized applications.

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