🔓 Stacks Removes sBTC Cap, Unlocking Bitcoin Yield Across DeFi

Bitcoin just got a DeFi upgrade. The Stacks ecosystem has officially removed the sBTC supply cap, opening the gates for unrestricted BTC deposits and yield opportunities. With integrations live on Zest Protocol, Granite BTC, and Bitflow Finance, sBTC is now positioned as the backbone of programmable Bitcoin liquidity.

⚡ Quick Hits

• 📈 Deposits: 500+ sBTC live on Zest Protocol
• 💸 APY: up to 3.5% on deposits
• 🎯 Next milestone: 1,000 sBTC
• 🔐 Non-custodial: BTC stays fully secure in Granite Protocol
• 🛡 Security: Anchored by Stacks’ Proof-of-Transfer (PoX) consensus on Bitcoin

🔑 What sBTC Really Means

sBTC isn’t your typical wrapped BTC. It’s a 1:1 Bitcoin-backed asset issued directly on Stacks, a Bitcoin Layer 2 that inherits 100% of Bitcoin’s security budget.

Unlike centralized wrappers, sBTC avoids custodians:

• ✅ Bridge in/out freely (above 0.01 BTC)
• ✅ No ceilings or supply caps
• ✅ Threshold signatures by Stacks validators for minimized counterparty risk

Result: Bitcoin can finally earn yield without leaving a Bitcoin-secured environment.

🪨 Granite Protocol: Safety First

Granite BTC is redefining DeFi lending:

• 🚫 No rehypothecation: BTC collateral is never re-lent or recycled
• 🧾 Flexible loans: Borrowers manage lines of credit without rigid payback schedules
• 🛡 Capital preservation: Solvency-driven liquidations protect users instead of nuking portfolios

Think of Granite as Bitcoin-native Aave, but with a laser focus on security over speculation.

🏗 Why This Matters

By removing the cap, sBTC becomes the foundation of Bitcoin DeFi:

• 💵 Yield generation via the Incentive Program
• 🔄 Liquidity deployment into apps like Zest, Granite, and Bitflow
• 🧩 Composable DeFi on a Bitcoin-secured Layer 2

This shift unlocks:

• Institutional capital inflows (no liquidity ceilings)
• Retail accessibility (bridge from just 0.01 BTC)
• A new era of Bitcoin as an active financial asset, not just digital gold

🔮 Bigger Picture: Bitcoin Yield at Scale

More sBTC means more liquidity. More liquidity means deeper borrowing, lending, and DeFi primitives across Stacks.

• For traders: BTC-backed borrowing with flexible structures
• For lenders: Non-custodial, yield-bearing positions
• For the ecosystem: Programmable BTC as the new standard

👉 Bottom line: Bitcoin’s future isn’t capped. With sBTC, it’s composable, yield-bearing, and finally DeFi-native.

⚡ TL;DR

Stacks just removed the sBTC cap, letting BTC flow into DeFi at scale. Platforms like Zest, Granite, and Bitflow now offer yield and liquidity with Bitcoin-level security. Granite adds safety-first lending, while Stacks positions itself as the leading Bitcoin L2. The move unlocks non-custodial Bitcoin yield and lays the foundation for a BTC-powered DeFi ecosystem.