Institutions Chase 3% Return on Bitcoin Through New Stacks Bond

Crypto institutions are targeting a 3% return on Bitcoin through a new Stacks bond. The Genesis Bond, launched by Stacks, went live on September 10 with around 250 BTC committed by several institutional investors.

The six-month bond aims to deliver about 1.44% yield over one term, distributed weekly. This is made possible by the Proof of Transfer system, which allows miners to spend BTC for producing Stacks blocks and receiving STX block rewards. The BTC enters a reward pool, where bonded BTC have priority claims on the flow.

The new bond design protects BTC principal from slashing while placing risk around reward delivery, lockups, and the surrounding protocol. This is different from some security protocols that make slashing central to their service.