sBTC Litepaper Release

MAY

29

Event date

Thursday 29 May 2025, UTC

Event description

The sBTC Litepaper will outline technical breakthroughs and designs for future iterations of sBTC, the decentralized bridge bringing Bitcoin to smart contracts on Stacks. It aims to introduce new yield opportunities, like programmable BTC vaults, to boost native yield for sBTC holders. This release is a key step in Stacks’ mission to enhance DeFi on Bitcoin, potentially increasing its utility and adoption (Stacks Roadmap).

Recent News

Stacks has been on a roll! In April 2025, they hit a Total Value Locked (TVL) high of $150M, a 25% jump from January, driven by their builder-led DeFi growth plan (Stacks Blog). Surge 3, celebrating sBTC Cap-2, saw the cap rise to 3,000 BTC—filled in hours (Medium, ALEX). Surge 4, ongoing as of May 2025, now lets users pay gas fees with sBTC, a major UX win!

Future Plans

Post-Litepaper, Stacks aims to expand on-chain yield products by Q4 2025, targeting scalable DeFi solutions. They’re also exploring cross-chain integrations to grow the ecosystem, ensuring sBTC remains a cornerstone of Bitcoin L2 DeFi (Stacks Roadmap).

Onchain Data

sBTC’s growth is impressive: Surge 2 saw the initial 1,000 BTC cap filled in just 2 days, while Surge 3’s 3,000 BTC cap was claimed in hours (Medium, ALEX). As of May 2025, Stacks’ transaction volume hit 500K monthly, up 10% since March (Stacks Explorer via The Block).

Community Sentiment

X sentiment is buzzing! Users are hyped, with posts like “sBTC is Bitcoin DeFi’s future!” trending. Influencers like @BitcoinBuilder are praising Stacks’ focus on secure, sustainable development, though some note concerns about yield risks (X Trends).

Why It Matters

This Litepaper could unlock new DeFi use cases for Bitcoin, attracting more liquidity to Stacks. With Bitcoin L2s gaining traction in 2025, Stacks is poised to lead the charge.

ALEX Lab

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ALEX Lab (ALEX) Events List

sBTC Cap-3 Milestone and Surge 4 Launch

The sBTC Cap-3 milestone marks a significant expansion of Stacks' sBTC protocol, which enables Bitcoin to interact with smart contracts on the Stacks Layer 2 network. By raising the cap to 5,000 BTC, Stacks aims to accommodate growing demand and facilitate more decentralized applications (dApps) built on Bitcoin sBTC Cap-3 and Surge 4. Surge 4, launching simultaneously, celebrates this milestone and introduces enhancements to the protocol, making it more accessible and efficient for users.This event is crucial for the crypto community as it bridges Bitcoin's security with the programmability of smart contracts, potentially attracting a broader range of developers and investors. The expected impact includes increased adoption of Bitcoin in DeFi and other innovative use cases, strengthening Stacks' position as a leading Bitcoin Layer 2 solution.Recent NewsStacks has been on an upward trajectory, with recent developments underscoring its growth. In March 2025, Stacks announced a partnership with Circle to integrate USDC on the Stacks network, enhancing its utility for cross-chain transactions Stacks & Circle Partnership. Additionally, the network's Total Value Locked (TVL) surged to $1.2 billion in April 2025, a 50% increase from the previous quarter, driven by the popularity of sBTC and new dApps Stacks TVL Growth.The successful rollout of sBTC Cap-2 in early 2025, which saw the 3,000 BTC cap filled within hours, demonstrated strong community interest and set the stage for Cap-3 sBTC Cap-2 Success. These milestones highlight Stacks' momentum and readiness for further expansion.Future PlansLooking ahead, Stacks is committed to scaling its ecosystem. The roadmap includes the full integration of sBTC by late 2025, aiming to remove all caps and allow unlimited Bitcoin to be bridged to Stacks Stacks Roadmap. This move is expected to unlock unprecedented liquidity and innovation, positioning Stacks as a cornerstone of Bitcoin's DeFi landscape.Additionally, Stacks plans to introduce a new governance model in 2026, empowering the community to influence protocol upgrades and resource allocation, fostering a more decentralized and resilient network Stacks Governance Model.Onchain DataAs of May 24, 2025, Stacks' native token, STX, is trading at $1.85 USD, with a market cap of $2.7 billion. The network has seen a 30% increase in daily transaction volume over the past month, reaching 1.2 million transactions, reflecting growing activity STX Price and Transaction Data. The sBTC protocol currently holds 2,950 BTC, nearing the Cap-3 threshold, indicating robust demand sBTC Holdings.Community SentimentThe crypto community on X has expressed enthusiasm for the Cap-3 milestone and Surge 4 launch. Influencers like @alexGo.btc have highlighted the potential for sBTC to "unlock Bitcoin's full potential," while community members anticipate increased DeFi opportunities Community Reactions on X. However, some caution against over-leveraging due to Bitcoin's volatility, reflecting a balanced sentiment Risk Discussions on X.Additional InsightsThe launch of sBTC Cap-3 comes at a time when Bitcoin's dominance in the crypto market is at 52%, with increasing interest in Layer 2 solutions Bitcoin Market Dominance. Competitors like Lightning Network and Rootstock are also expanding, but Stacks' focus on smart contracts and DeFi sets it apart, potentially attracting users seeking more than just payment solutions.Risk DisclaimerWhile sBTC Cap-3 and Surge 4 promise significant benefits, cryptocurrency investments involve risks, including market volatility and technical challenges. Users should conduct thorough research and consider their risk tolerance before engaging with the protocol.ConclusionMark your calendars for May 15, 2025, as Stacks pushes the boundaries of Bitcoin's capabilities with sBTC Cap-3 and Surge 4. This event is not just a milestone but a leap towards a more programmable and decentralized Bitcoin ecosystem. Join the movement and be part of the future of finance!

ALEX Lab

June 5

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