sBTC Expansion Continues: Announcing 3rd Deposit Cap, Unlocking More Bitcoin Liquidity and Growth
//: May 7, 2025
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Staff @ Bitcoin L2 Labs
Note: the third deposit cap has been moved to May 22nd in order to allow for broader participation from institutional partners.
On May 22, 2025, the third sBTC deposit cap will open, allowing an additional 2,000 BTC to be deposited into the system.
sBTC provides Bitcoin holders with a 1:1 Bitcoin-backed asset on the Stacks Layer 2, enabling participation in DeFi while maintaining Bitcoin’s core principles.
This cap raise follows the April 30th launch of sBTC withdrawal functionality, allowing users to convert sBTC back to native BTC on the Bitcoin mainnet in a trust-minimized manner.
On May 22, 2025, the third sBTC deposit cap will open, allowing an additional 2,000 BTC to be deposited into the system.
sBTC provides Bitcoin holders with a 1:1 Bitcoin-backed asset on the Stacks Layer 2, enabling participation in DeFi while maintaining Bitcoin’s core principles.
This cap raise follows the April 30th launch of sBTC withdrawal functionality, allowing users to convert sBTC back to native BTC on the Bitcoin mainnet in a trust-minimized manner.
3rd Deposit Cap: 2,000 More BTC on May 22nd
- Date & Time: Deposits open to the public on May 22, 2025, on a first-come, first-served basis.
- Cap Increase: An additional 2,000 BTC will be available for deposit, bringing the total sBTC supply cap to 5,000 BTC.
- Minimum Deposit: 0.01 BTC, ensuring efficient system operation and preventing spam.
Building on Institutional and Retail Support
This latest cap increase follows consistent demand: the previous cap was reached in less than 24 hours, reflecting strong adoption from builders, institutions, and retail users alike.
Notable participants in previous cap raises include SNZ, UTXO Capital, and Jump Crypto-firms recognized for their leadership in digital asset innovation and trust in emerging protocols.
Notable participants in previous cap raises include SNZ, UTXO Capital, and Jump Crypto-firms recognized for their leadership in digital asset innovation and trust in emerging protocols.
Why a Phased Deposit Cap?
sBTC’s phased cap strategy is designed to balance rapid growth with security and stability. Each cap increase follows successful adoption and rigorous testing in the previous phase, ensuring that the protocol can safely scale while maintaining the highest standards for user protection and system resilience.
How to Participate
- Visit the sBTC Dashboard: Access the streamlined deposit process at app.stacks.co.
- Connect Your Wallet: Compatible with Leather, Xverse, Ledger, Asigna, and more.
- Deposit BTC: Follow the step-by-step instructions to bridge your BTC and mint sBTC.
- Earn Rewards: Join the sBTC rewards program to earn additional BTC rewards simply by holding sBTC.
Explore the Updated sBTC Dashboard
The sBTC dashboard at app.stacks.co now features:
- Simplified deposit and withdrawal flows with clear guidance
- Real-time cap tracking for transparency
- Enhanced security prompts and audit links
- Full mobile responsiveness for use on any device
Security & Transparency
sBTC is secured by a decentralized signer set, requiring 70% consensus for all operations, and is always backed 1:1 with BTC. The protocol undergoes regular audits and is supported by a robust bug bounty program, ensuring user funds and protocol integrity remain top priorities.
sBTC 101
sBTC is a 1:1 Bitcoin-backed asset on the Stacks Layer 2 network, allowing Bitcoin holders to use their BTC in DeFi applications-such as earning yield, lending, and trading-without compromising on security or decentralization. Conversion between BTC and sBTC is non-custodial and trust-minimized, enabled by Stacks’ Proof of Transfer (PoX) and a decentralized signer set. This unlocks access to Bitcoin’s capital for on-chain applications, while ensuring all sBTC remains fully backed and withdrawals are transparent.
Get Ready for May 22nd
With the third cap increase, sBTC is opening the door for even more users and institutions to unlock Bitcoin’s potential in DeFi. Mark your calendars, explore the new dashboard, and prepare to participate in the next phase of Bitcoin’s L2 evolution.
For more details, visit the sBTC dashboard and follow our channels for updates.
For more details, visit the sBTC dashboard and follow our channels for updates.
FAQs
How do I withdraw Bitcoin from sBTC?
Users can withdrawal BTC by submitting a request through the official Stacks dashboard or through any compatible wallet or application.
Here’s how it works:
How long does an sBTC withdrawal take?
Withdrawals require 6 Bitcoin blocks to finalize, which is approximately one hour.
What fees are involved in an sBTC withdrawal?
Withdrawals require the user to pay the Bitcoin network fee required to confirm the BTC transaction on the Bitcoin blockchain. This fee is estimated based on current network congestion.
Is there a minimum withdrawal amount?
No. The only requirement is withdrawals must meet a minimum amount above the dust requirements (546 sats).
Why is there an initial limit on withdrawals?
As an added security measure, sBTC will have a temporary initial withdrawal limit of 150 BTC per day (150 Bitcoin Blocks). This will allow sBTC developers to ensure the system is operating as expected before the withdrawal rolling cap is lifted in the upcoming weeks.
What happens if the withdrawal process fails?
If a withdrawal fails due to network issues or signer unavailability, the withdrawal request may expire. In that case, the sBTC is unlocked and returned to the user, who can try again without losing funds.
Users can withdrawal BTC by submitting a request through the official Stacks dashboard or through any compatible wallet or application.
Here’s how it works:
- Initiate withdrawal: The user specifies the amount of sBTC to redeem and provides a valid Bitcoin address for receiving the BTC.
- sBTC locked on Stacks: The withdrawal request is recorded and the specified amount of sBTC is locked on the Stacks blockchain.
- sBTC signers approve the request: The withdrawal request is processed by the sBTC protocol. At least 70% of the sBTC signer set must approve the request.
- BTC released: The sBTC signer set broadcasts a Bitcoin transaction to release the BTC to the user’s specified address.
- sBTC burned on Stacks: The withdrawal completion is recorded and the specified amount of sBTC, previously locked, is burned on the Stacks blockchain.
How long does an sBTC withdrawal take?
Withdrawals require 6 Bitcoin blocks to finalize, which is approximately one hour.
What fees are involved in an sBTC withdrawal?
Withdrawals require the user to pay the Bitcoin network fee required to confirm the BTC transaction on the Bitcoin blockchain. This fee is estimated based on current network congestion.
Is there a minimum withdrawal amount?
No. The only requirement is withdrawals must meet a minimum amount above the dust requirements (546 sats).
Why is there an initial limit on withdrawals?
As an added security measure, sBTC will have a temporary initial withdrawal limit of 150 BTC per day (150 Bitcoin Blocks). This will allow sBTC developers to ensure the system is operating as expected before the withdrawal rolling cap is lifted in the upcoming weeks.
What happens if the withdrawal process fails?
If a withdrawal fails due to network issues or signer unavailability, the withdrawal request may expire. In that case, the sBTC is unlocked and returned to the user, who can try again without losing funds.
Disclaimer
This blog post is for general informational purposes only and should not be construed as advice or guidance. The information provided has not been tailored to any specific individual, facts, or circumstances. Readers are cautioned that the content may become outdated or inaccurate over time and should not be relied upon without conducting their own independent verification and investigation. BitcoinL2 Labs assumes no obligation to update, correct, or revise any information presented in this blog post.
BitcoinL2 Labs does not own, control, manage, or profit from the sBTC token, its ecosystem, or any associated projects. Additionally, BitcoinL2 Labs does not manage sBTC, its rewards program, or any related activities. References to sBTC in this blog post do not constitute recommendations, investment advice, or an invitation to engage in cryptocurrency-related activities.
The sBTC rewards program operates independently through decentralized smart contracts. Participation in the program is entirely at the discretion and responsibility of individual users. Users must affirmatively enroll in the program. **Readers are strongly encouraged to consult qualified financial, legal, or tax professionals before participating in sBTC or any cryptocurrency-related activities. BitcoinL2 Labs disclaims all liability for any loss, damage, or consequences resulting from reliance on this blog post or engagement with cryptocurrency-related activities.
BitcoinL2 Labs does not own, control, manage, or profit from the sBTC token, its ecosystem, or any associated projects. Additionally, BitcoinL2 Labs does not manage sBTC, its rewards program, or any related activities. References to sBTC in this blog post do not constitute recommendations, investment advice, or an invitation to engage in cryptocurrency-related activities.
The sBTC rewards program operates independently through decentralized smart contracts. Participation in the program is entirely at the discretion and responsibility of individual users. Users must affirmatively enroll in the program. **Readers are strongly encouraged to consult qualified financial, legal, or tax professionals before participating in sBTC or any cryptocurrency-related activities. BitcoinL2 Labs disclaims all liability for any loss, damage, or consequences resulting from reliance on this blog post or engagement with cryptocurrency-related activities.