Stacking STX to earn BTC rewards — everything you need to know

written by OKCoin

Stacking STX to earn BTC rewards — everything you need to know

Archived — We have updated our Stacking process. Refer to our new blog outlining the updated Stacking process. Please read here.

As we approach the third Stacking cycle — set to begin around Feb 26 — we’d like to take a moment to explain exactly what Stacking is, how it works on Okcoin, and all the timing details you need to start depositing your STX and earning ~15% APY in BTC.

Table of Contents

What is Stacking?

“Stacking” on the Stacks blockchain network is similar to the process of staking on proof-of-stake blockchains. By temporarily locking STX on the Stacks protocol, participants secure and maintain network consensus via the protocol’s proof-of-transfer mechanism. As a reward for doing so, they earn BTC. 

Okcoin is the only place where you can deposit as low as just 50 STX (~$40) to participate in Stacking and earn BTC rewards. On the Stacks wallet, you need at least 50,000 STX, or about $40,000 at current market prices to be able to participate in Stacking. 

Okcoin customers can deposit any amount of STX above the 50 STX minimum and start earning BTC rewards. We make this possible by pooling STX deposits from all participating customers, thereby lowering the barrier to entry and expanding access to the Stacks protocol. 

Stacking FAQs 

When can I deposit STX to earn BTC?

The Stacking process and distribution of BTC rewards happens in cycles, which are approximately two weeks long. The cycle length is determined by block confirmations — each cycle is 2000 Bitcoin blocks. With the current average block confirmation time of ~10 minutes on the Bitcoin blockchain, 2000 blocks usually translates into roughly two weeks. You can check exactly how many blocks are left before the next Stacking cycle here

Potential Stacking schedule

Below you can find the estimated schedule for the current and upcoming Stacking cycles, depending on block confirmation time. 

CycleDeposit STX byStartEndBTC distribution startsAvg. APY
2ndFeb 9Feb 11Feb 26Feb 1129.74%
3rdFeb 24Feb 26Mar 12Feb 26n/a
4thMar 10Mar 12Mar 26Mar 12n/a
5thMar 24Mar 26Apr 9Mar 26n/a

We’re currently approaching the third STX Stacking cycle, which is set to begin around Feb 26. In order to earn rewards in a Stacking cycle, customers need to deposit their STX on Earn before the new cycle begins. In order to leave time for us to process deposits, OKCoin cuts off deposits for the upcoming cycle two days before the new cycle starts. For example, to earn BTC in the third Stacking cycle, you can deposit STX up until Feb 24.

To see the exact time limit for depositing your STX on Okcoin Eаrn, check the live countdown at the top of the page. 

Deposit STX before the countdown on the Earn page ends to earn BTC rewards in the next Stacking cycle 

If you already have STX deposited on Earn in a given cycle and you want to participate in the next cycle, you don’t need to take any action — your STX will be automatically rolled over into the next earning cycle.   

When do I get my BTC rewards?

Okcoin aggregates all BTC rewards from Stacking STX and pays them out to users proportionally around 8:00 pm PST daily. BTC rewards are automatically deposited directly to the participant’s Okcoin funding account and are available to trade or withdraw immediately.  

If the very first block of a new cycle starts before 8:00 pm PST, then customers Stacking via Earn will receive the first rewards of that cycle that same day. Otherwise, they will start receiving rewards starting the following day.

Please note: reward distribution, as determined by the Stacks protocol, is front-loaded towards the beginning of each cycle. This means there may be a few days towards the end of each cycle when customers won’t see any new BTC rewards in their accounts. 

For more information on how reward distribution works on Stacks, check out the team’s analysis of the protocol’s first BTC rewards cycle. 

When can I withdraw my deposited STX from Earn?

Once you deposit STX on Earn, your STX will be locked for the approximately two-week duration of the Stacking cycle. You can redeem — or unlock — your deposited STX from Earn anytime. However, your STX will only be returned to your account once the Stacking period ends. You’ll be able to withdraw your deposited STX from Earn once the current Stacking period ends. 

However, if you haven’t requested to redeem your STX by two days before the end of the current cycle, it will be automatically rolled over to the next Stacking cycle to earn more BTC.

Step-by-step guide — How to Stack STX on Okcoin

Step 1: Go to Okcoin Earn

Navigate to the Earn page on Okcoin. You’ll see the option to Stack STX at the very top of the screen.

Stacking STX on Okcoin Earn 

You’ll see that the current yield rate is 15%, which is the average return you can expect to earn on your deposited STX. 

Step 2: Deposit or buy STX

Now that you’re on the Earn page, click on the Deposit button for the “Earn BTC” offering at the top of the page to deposit STX into Earn. If you already own STX on Okcoin, you can follow the prompts to deposit your STX on Earn to start Stacking.

If you own STX, but not on OKCoin, you’ll need to deposit it into your Okcoin account to start. To do this, click on Assets in the upper right-hand corner and select Deposit. Select STX as your currency to deposit.

Depositing STX from an external account onto OKCoin

Once you’ve selected STX as your currency, you’ll need to copy the STX wallet address and the provided memo from Okcoin. (IMPORTANT) Both the wallet address and memo are required to complete your deposit successfully into your Okcoin account. The STX wallet address shown is Stack’s standard token address, while the provided memo is unique to your individual account.

Depositing STX from an external account onto OKCoin

If you don’t yet have any STX, just click Deposit → Buy STX from the Earn page to purchase STX on Okcoin, as shown below. 

Deposit or buy STX on Okcoin earn. 

Once you have STX, you can continue the process to deposit your STX on Earn. You’ll see all the Stacking details for your STX on the page when you deposit. 

STX Stacking details when you deposit STX on Earn 

Once your assets have been successfully deposited on Earn, you’ll receive a deposit confirmation message on your screen. 

Deposit confirmation on Earn

Once you’ve deposited STX on Okcoin Earn to start Stacking and earning BTC, you can check the status of your deposit. You’ll see the exact date when your deposited STX will start earning rewards. 

When you deposit STX on Earn, your deposit will be pending and will only start earning BTC once the new cycle begins.

Step 3: Sit back and earn BTC

Once the cycle starts, you’ll see your status change to “Earning.” That means your deposited STX is now earning BTC, which will be deposited into your account on a daily basis, when rewards are available. 

Once your STX is actively earning BTC in a cycle, you’ll see your status change to “Earning”

Step 4: Redeem your STX

To unlock your STX from Earn, access the option to Redeem by clicking on the Action button in the My Earnings section towards the bottom of the page. 

You can redeem your STX at any time, however these funds will only be available to withdraw towards the end of the Stacking cycle in which they’re deposited. After clicking Redeem, you’ll see your order status has changed to “Redeeming” and the date when your STX will be unlocked and available to withdraw.

Once you’ve chosen to redeem your STX, you’ll see your status change to “Redeeming”

Again, please note, if you do not redeem your STX two days before the next Stacking cycle begins, then your deposited STX will automatically be rolled over into the next cycle.  

Withdrawing STX from OKCoin — don’t forget the memo

When withdrawing STX from your Okcoin account to an external address, you’ll be asked to provide three pieces of information:

  1. The STX wallet address where you’re sending your STX
  2. An STX memo
  3. An address/blockchain domain tag

The STX wallet address and STX memo are required to withdraw STX from your Okcoin account. In the case that the receiving wallet does not require a specific phrase when depositing STX, then any phrase will work for the STX memo field. The address/blockchain domain tag field is optional and can be used as your own personal transaction reminder.

Okcoin Earn offers a more user-friendly and less expensive way to participate in the world of decentralized finance. Check out our DeFi protocol offers on Earn where you can deposit stablecoins and earn up to 18% (APY changes based on demand) — all while paying zero gas fees. For more details on using Okcoin’s Earn tool, please read our Earn Terms and Conditions

Okcoin is not engaged in the offer, sale, or trading of securities. No FDIC or SIPC protections are available. Please consult your own investment/tax professional regarding your specific circumstances. Rewards terms may change without notice and are subject to Okcoin’s Terms of Service.

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