Good morning/evening
Today I am thinking about Stacks $STX. I do hold some $STX and have for a while now but as I plan on DCAing in more I thought I would look at whether to stack or stake.
The key difference being if I stack I will be rewarded in BTC and if I stake I will be rewarded in STX.
A little about Stacks
Stacks is built on top of the Bitcoin chain. A layer for smart contracts.
was originally founded as 'Blockstack PBC' by Muneeb Ali and Ryan Shea.
The testnet was launched in 2018
later the same year had an SEC regulated token sale
In 2020 reached a then all time high of $2.50 and later rebranded to Stacks
In January 2021 Stacks 2.0 was launched.
Stake
There are many places where you can stake your STX tokens. There are lots of validators available with different fees, lock up periods and APY's but as always you will need to research a validator with a good proven track record.
Stack
When you Stack, you’ll earn Bitcoin that miners transfer as part of Proof of Transfer, Stacks’ unique consensus mechanism. By locking up STX tokens on the network, or 'Stacking', you provide valuable security benefits to the network. Your reward is in Bitcoin. The Bitcoin yield that stackers earn is determined by a combination of the Bitcoin being committed by miners and the number of STX tokens that are locked up in the network.
Where to stack/stake?
There are also many places where you can stack your STX including some CEX's. My STX tokens are currently on Kucoin but I am looking to move them to a self custody wallet. As I don't have 1000's of STX I will have to pool them. There are also more DeFi protocols where you can earn with your STX including -
ALEX and LISA
You can stake on Alex to earn yield and participate in governance. https://alexlab.co/
Liquid stacking without the need to lock up your tokens.
Although Stacks has recently had a 9 hour halt on block production, I am still buying, in fact I bought the dip (discount lol). These things happen and as there is developer activity, I was not overly worried as I see this as a longer term investment.
Monthly chart from https://coinmarketcap.com/currencies/stacks/
At the moment I am probably swayed to stack from a self custody wallet as I like the idea of earning a passive yield in Bitcoin. I would love to hear your thoughts though, do you hold STACKS? Are you a stacker or a staker?
There is a lot of information if you are interested in stacks as I have just put a brief overview here. As always thank you for reading and please feel free to comment, I would love to hear other opinions on Stacks
