Stacks Aims to Build the Home of Bitcoin-Native Finance

The Stacks project aims to create a home for Bitcoin-native finance by building a system where BTC holders can participate in on-chain financial activity without taking on custody, bridge or foreign-chain risks.

The project's roadmap includes three stages: attracting Bitcoin capital with self-custodial yield, scaling the infrastructure needed to support greater activity, and expanding the financial applications available to that capital.

To achieve this, Stacks plans to use self-custodial Bitcoin Staking as an entry point for BTC holders, targeting a 3% annualized rewards paid in Bitcoin. The project has already operated its Proof of Transfer (PoX) consensus mechanism since January 2021, distributing over 4,200 BTC.

The wider Stacks ecosystem is also assembling financial primitives needed to move BTC beyond staking, including liquid staking layer provided by StackingDAO, markets for Bitcoin-linked assets trading and liquidity provided by Bitflow, credit markets offered by Zest Protocol, and yield products and a Bitcoin-linked monetary layer through Hermetica.