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Liquid Staking on Botanix: How to Stake BTC

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For too long, your Bitcoin has been a sleeping giant - secure, but inactive. What if we could unlock its full potential? With Botanix, a revolutionary Bitcoin Layer-2, you can now put your BTC to work. Below is a short, practical guide that walk you through the simple process, taking you from zero to earning passive BTC yield in the time it takes to finish your morning coffee.

Key Takeaways

  • The Freedom of Liquidity: Your funds remain liquid and accessible for you to use across the DeFi ecosystem.
  • Earn Real BTC Yield: It gets revenues from 50% of all Botanix network gas fees and is paid in BTC directly.
  • Withdraw at Will: You can withdraw your BTC whenever you want within two clicks.
  • Secure & Audited: The protocol is completely audited, non-custodial, and running live on mainnet.

What is Botanix?

Botanix is revolutionizing Bitcoin by unlocking its true potential. It's the first system to harness the power of Ethereum's smart contracts within the Bitcoin ecosystem, enabling faster and cheaper transactions. You can now do things with your Bitcoin like earning interest via liquid staking or interacting with DeFi applications without losing the unparalleled security that only the Bitcoin network has to offer. Consider Botanix as a bridge connecting Bitcoin's security with Ethereum's versatility, creating a world of new opportunities.

Liquid staking offers you the opportunity to put your Bitcoin to work and earn rewards without tying it up long term. When you stake your BTC through Botanix  Bitcoin Yield, you receive stBTC tokens in return 1:1.

stBTC vs. Other Staking Tokens

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These tokens represent your staked Bitcoin and are meant to increase in value over time since 50% of the transaction fees on the Botanix network accrue to them. There is no re-staking, no lock-up, and no risk of slashing during this liquid phase.

Step 1 – Choose Your Wallet for Botanix

If you are ready, let's begin. Your first task is to establish your digital home base. You will require an EVM-compatible wallet in order to use a decentralized system like Botanix. Everyone makes use of mainstream, popular options like MetaMask or Rabby. Your call is to decide upon what works better for you, and then we can begin.

Once you have your wallet, you just need to tell it how to connect to Botanix. Simply add a new network with the following details:

Step 2 – Bridge Your BTC to Botanix

As Botanix is a separate chain, your BTC must cross a bridge first to be ready for staking. After preparing your wallet and setting up the Botanix network, head to the Botanix Bridge and connect your wallet to move your Bitcoin onto the Botanix Layer-2.

Important Notes:

  • Botanix is currently in beta. Only use funds you’re comfortable experimenting with.
  • Always send Bitcoin transactions through the Bitcoin network.
  • Only make one deposit per Bitcoin block to the same address.
  • The minimum deposit is 0.00015 BTC (approximately $16).
  • Keep in mind that every transaction require a fee.

Here’s how the interface guides you through the process:

On the Botanix Bridge page, in the Step 1 section you’ll see a prominently displayed Bitcoin deposit address (it starts with “bc1”). Click on the copy button right next to it to save this address in your clipboard. It's where your Bitcoin will be sent and is coming from your Bitcoin wallet.

Open your Bitcoin wallet and create a new transaction. Enter the Botanix deposit address copied above into the destination address field. Enter how much BTC you'd like to deposit, ensuring it has a minimum amount to deposit of 0.00015 BTC. Send out your transaction and then wait while it's verified by Bitcoin's network. It'll typically take about 10 minutes per confirmation, but a typical amount of confirmations needed to completely secure is 6.

After sending the BTC, return to the Botanix Bridge page in the Step 2 section . Click the "Refresh" button to update the deposit status. Once your transaction appears in the table with the status "Transaction Received", click the "Claim" button. Follow the prompts in your EVM wallet to sign the transaction and complete the claim process. Your BTC will now be available on the Botanix network and ready for staking.

Step 3 – Stake BTC on Botanix

Now, when you are ready to stake, open yield.botanixlabs.com and connect the wallet holding your freshly bridged BTC. Enter how much you wish to stake, confirm the “Deposit”, and sign the transaction. Behind the scenes, the contract mints stBTC and delivers the latter to your address at a 1:1 ratio.

In less than ten seconds, the stBTC tokens land in your wallet. You are now officially earning yield on your Bitcoin!

Step 4 – Spend, Lend, or Withdraw Rewards

Your stBTC holding is a liquid representation of your deposited assets, designed for broad utility across the ecosystem. Rather than functioning as a static receipt, it is a dynamic token. Consider the following use cases:

  • Hold and Grow: The simplest strategy, just hold your stBTC. Over time, its value will passively increase against BTC as the network collects fees.
  • Use in DeFi: stBTC can be placed in lending protocols to borrow against other tokens or entered into liquidity pools to receive trading fees.
  • Trade: If the value of stBTC increases compared to BTC, you can trade your stBTC for BTC on supported exchanges or DEXs, effectively cashing out your gains.

When it's your turn to get your actual BTC back again, all you need to do is head back to your "Withdraw" area on your yield page. It's a simple two-step "Request" and "Claim" that transfers your BTC right back into your wallet.

  1. Go to "Request" section and type in how many stBTC you wish to withdraw and then press "Request Withdrawal". Confirm transaction in your wallet.
  2. Once the request is processed, move to the "Claim" section. Input how much BTC that will be claimed, press "Claim" and confirm it via your wallet.

After confirmation, your BTC will be back in your wallet. You can then bridge it back to the native Bitcoin network if needed. The entire round trip - from bridge in to bridge out - rarely exceeds a minute and costs less than a dollar in fees.

Botanix offers a liquid, user-friendly way to put your Bitcoin to work on your behalf while still having flexibility and earning potential. Whether you want to increase your crypto holdings passively or be an active contributor to DeFi, Botanix has the tools to facilitate this.

The information provided by DAIC, including but not limited to research, analysis, data, or other content, is offered solely for informational purposes and does not constitute investment advice, financial advice, trading advice, or any other type of advice. DAIC does not recommend the purchase, sale, or holding of any cryptocurrency or other investment.