In this guide, you will discover how to perform liquid STX stacking with LISA using your Xverse wallet.
What Is LISA?
LISA is a liquid stacking protocol built on the Stacks Layer 2 network, which allows users to stack their STX tokens and earn rewards.
LISA distributes liquid stacking tokens to stackers, allowing them to remain liquid as their STX tokens earn them stacking rewards. The protocol’s integration with ALEX also enables users to participate in the Stacks DeFi ecosystem using liquid stacking tokens.
Other than ALEX, LISA has also collaborated with the STX stacking pools Xverse and Fast.
What Is Liquid STX Stacking?
Liquid STX stacking is the process of locking STX tokens on a decentralized application like LISA to earn rewards while contributing to the security of the Stacks network.
Unlike stacking with a stacking pool or a crypto exchange, liquid stacking distributes liquid stacking tokens to stackers to keep funds liquid as their locked STX tokens earn them rewards.
How Does Liquid STX Stacking Work on LISA?
LISA pools STX from users and collaborates with stacking pools like Xverse and Fast, to provide diversification and flexibility.
This allows users to stack below or above certain minimums. While most non-custodial pools require more than a 10 STX minimum, you can stack less than 10 STX with LISA.
Once you stack STX tokens with LISA, a smart contract mints an equivalent amount of LiSTX and sends it to your wallet. LiSTX is a liquid stacking token you can redeem 1:1 for STX tokens. You can also convert LiSTX to vLiSTX to perform various DeFi activities.
What is LiSTX?
LiSTX is a SIP-10 token backed by STX 1:1. It uses a rebasing mechanism to ensure its supply is in line with that of the underlying asset.
Rebasing also enables the LiSTX balance to automatically adjust, reflecting the growth of stacking yields. When you want to unstack, LiSTX is burned and an equivalent amount of STX tokens is sent to your wallet. LiSTX can also be traded against other tokens on exchanges.
SIP-10 is a token standard for fungible tokens on Stacks.
What is vLiSTX?
vLiSTX is a liquid stacking and SIP-10 token used to interact with DeFi platforms. For instance, you can convert LiSTX to vLiSTX and use it to borrow against a stablecoin of your choice.
Unlike LiSTX, which uses a rebasing mechanism, the value of vLiSTX rises steadily over time as stacking rewards accumulate but the amount in your wallet remains constant. To illustrate, the value of 1 vLiSTX is equal to 1 STX today. However, the value of 1 vLiSTX could be equal to 1.05 STX in the future.
What Yields Can You Expect?
LISA uses the Annual Percentage Yields (APYs) of Fast Pool and Xverse Pool to dispense stacking rewards in STX.
Yields vary from cycle to cycle, so LISA doesn’t promise a specific APY. Having said that, Xverse Pool offers an APY of about 9%, while Fast Pool’s rate is typically less than 1% per cycle.
LISA doesn’t charge stackers any fees. The only costs you will pay are the transaction fees for stacking, unstacking, and converting LiSTX to vLiSTX.
Pool Staking vs. Liquid Stacking: A Comparison
Let’s look at the difference between stacking with LISA and using the Xverse Pool.
Liquid STX Stacking With LISA & Xverse: A Step-by-Step Guide
Here’s how you can stack with LISA using your Xverse wallet:
- Open the LISA website on your browser and click “Launch App.”
- Hit the button labeled “Connect Stacks wallet.” This will open the wallet manager.
- Select “Xverse” under the Stacks Chain menu. This will allow you to connect the Xverse Chrome extension wallet. We will use the browser wallet in this example. However, you can connect the Xverse mobile wallet to stack through your phone.
- Unlock your wallet and accept the connection request.
- Enter the amount of STX you want to stack and then click “Stack.”
- Approve the request to mint LiSTX and wait for the transaction to be confirmed.
- Once the mint transaction has been confirmed, you will receive an amount of LiSTX corresponding to the amount of STX you stacked. You’ll also start getting rewards in the next cycle.
And that’s it! That’s how you can stack STX with LISA.
Xverse: Your Gateway to Bitcoin Web3 And the Stacks Ecosystem
Xverse is the market-leading Bitcoin Web3 wallet that enables you to explore Bitcoin Layers like Stacks as well as Bitcoin-native assets such as Ordinals, Runes, and Rare Sats.
The Xverse Stacks Wallet allows you to seamlessly stack STX, either directly using the Xverse Pool or by connecting your wallet to liquid stacking protocols like LISA.
Download Xverse today to start stacking STX to earn stacking rewards.
