sBTC

sBTC is used to bring BTC-backed value into applications running on Stacks. It allows smart contracts written in Clarity to interact with an asset backed by Bitcoin without requiring BTC itself to operate as a smart contract token on the Bitcoin base layer.

Users can transfer sBTC on Stacks or use it in applications such as decentralised exchanges, lending markets and liquidity protocols. Developers can also build applications that accept, transfer or redeem sBTC.

The supply of sBTC is linked to BTC held by the peg system. Depositing BTC creates corresponding sBTC, while redeeming sBTC for BTC removes the redeemed sBTC from circulation. This mechanism is designed to maintain 1:1 backing between sBTC and BTC held by the system.

sBTC was developed within the Stacks ecosystem as part of work to extend Bitcoin functionality through the Stacks layer. Its design was publicly introduced in 2022 as a two-way peg mechanism between Bitcoin and Stacks.

Development has involved Stacks Core Engineering contributors and other developers working across the Stacks ecosystem. The protocol is not attributed to a single creator.

Muneeb Ali, a co-creator of Stacks, was involved in presenting the original sBTC proposal, while the design and implementation of sBTC have involved multiple contributors and organisations within the Stacks ecosystem.