#How Can Bitcoin Holders Earn from Their Assets?
Bitcoin sitting idle in a wallet does not generate any returns. However, the Stacks network presents an opportunity to change that structure. They are launching a new 90-day incentive program designed to engage users more fully within their Bitcoin-native DeFi ecosystem. This initiative will distribute a total of 3 BTC over the program's duration, with participants earning rewards for either borrowing the stablecoin USDCx or supplying liquidity to USDCx trading pairs.
The program is set to begin around September 10, 2026, synchronized with Bitcoin block 966,350.
#What Steps Do Participants Need to Take to Earn Rewards?
To qualify for rewards, users can borrow USDCx using sBTC or STX as collateral. Additionally, any participant who provides liquidity to USDCx trading pairs will also take part in the monthly BTC distribution.
sBTC, a Bitcoin-backed asset maintaining a 1:1 ratio with Bitcoin, serves as a secure form of collateral within the Stacks ecosystem. The method mirrors the lending practices seen in institutional trading with wrapped Bitcoin on Ethereum, albeit executed within the Stacks infrastructure and incentivized further with additional BTC rewards.
STX, which is the native token of the Stacks blockchain, also qualifies as collateral, allowing participation from users actively involved in the Stacks ecosystem, even if they do not possess sBTC.
The operational framework for this program is managed by two key partners. Zest Protocol oversees the lending and borrowing functions, facilitating USDCx loans against collateral. Bitflow, a decentralized exchange on Stacks, orchestrates the liquidity component, enabling users to enhance on-chain trading markets by pairing USDCx with various assets.
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#What Underpins USDCx as a Stablecoin in This Program?
At the core of this initiative lies USDCx, a relatively new stablecoin developed by Stacks to function seamlessly within the Bitcoin layer 2 ecosystem. Launched in December 2025 and built upon Circle’s xReserve infrastructure, USDCx is backed by USDC, preserving a 1:1 peg to the US dollar.
Instead of crafting a brand-new stablecoin, Stacks absorbed institutional-level dollar-backed infrastructure in a form that operates natively within its environment. This approach reinforces USDCx's credibility while enhancing functionality inside a Bitcoin-secured ecosystem.
#Why Are Rewards Offered in BTC Instead of STX?
Choosing to distribute rewards in BTC is strategic. Reward programs tied to token values often decrease the token’s worth as more users engage in farming, tragically creating a negative cycle of selling pressure. Stacks circumvents this concern by rewarding users in Bitcoin, an asset that naturally holds value for participants, irrespective of native token dynamics.
The program offers a total reward pool of 3 BTC, distributed at a rate of 1 BTC every 30 days, rather than an upfront allocation. This structure ensures sustained engagement throughout the program's duration, aligning interests and fostering an inclusive environment for DeFi participation within Bitcoin's growing ecosystem.