YIELD TALKS: Catching Up On The State of Stacks DeFi

Jan 12, 2025

Tycho Onnasch, a key contributor to Stacks, Stacking DAO, and Zest Protocol, shares insights into the vibrant world of Stacks DeFi. He discusses how Stacking DAO is revolutionizing yield opportunities while introducing stSTX for liquid stacking rewards in sBTC. The conversation covers recent upgrades that enhance transaction speed and features like SVTC, driving significant growth in Bitcoin's Total Value Locked. With innovative AI integration on the horizon, the future looks bright for Stacks DeFi!

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INSIGHT

Stacks Evolution

Stacks initially aimed to be a Bitcoin identity layer but evolved into a smart contract platform.
This shift was driven by the rising demand for programmable smart contracts, which Bitcoin's Layer 1 couldn't handle.

INSIGHT

Bitcoin Programmability

Bitcoin's Layer 1 simplicity restricts advanced functionalities like collateralization and liquid staking.
Stacks addresses this by offering a programmable Layer 2 secured by Bitcoin's hash rate, enabling such use cases for BTC.

ANECDOTE

Stacks Upgrade and SBTC

Stacks recently underwent the Nakamoto upgrade, improving transaction speed significantly.
SBTC, enabling BTC transfer to Stacks, launched with deposits; withdrawals are expected this quarter.

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Tycho Onnasch is a contributor to Stacks, Stacking DAO, and Zest Protocol.

In this episode, we catch up on the state of DeFi on Bitcoin L2 Stacks. Speaking with the top DeFi protocol on Stacks, we learn how Stacking DAO is unlocking new yield opportunities, how stSTX will deliver liquid stacking rewards in sBTC, and why Stacks TVL is more than ready to grow.

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Timestamps

0:00 - Intro
0:51 - What is Stacks?
2:30 - Difference between a Bitcoin sidechain vs L2
4:42 - How performant is Stacks now?
6:51 - Sponsor pre-roll
9:16 - What is Stacking DAO?
10:49 - Stacking STX manually vs stSTX LST
12:16 - Stacking DAO points program
14:36 - Best stSTX yields
16:17 - stSTX value accrual + new sBTC yield
19:10 - Mantle and GOAT Network mid-roll
20:20 - Will Stacks Foundation begin bootstrapping new TVL?
21:50 - Satoshi AI agent on Stacks
23:30 - Tycho’s favorite DeFi yields on Stacks
24:49 - Are stablecoin yields elevated on Stacks due to Ethena?
26:06 - Closing + What will grow Stacks TVL to $1B?
29:15 - When will stSTX support yield in sBTC?

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🔗 Guest Links 🔗

► Stacks website: https://stacks.co/

► Stacking DAO website: https://www.stackingdao.com/
► Stacking DAO on X/Twitter: https://x.com/StackingDAO
► Tycho on X/Twitter: https://x.com/TychoOnnasch

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All opinions expressed by hosts and podcast guests are solely their own opinions and not necessarily those of Fourth Revolution Capital. Podcast guests and 4RC may have positions in the assets or other matters discussed in this podcast. DeFi Dad was an angel investor in Stacking DAO. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Do your own research. This is not a recommendation or endorsement to buy any token(s) related to any platform(s) discussed.