Alea Research dissects Stacks PoX-5 bitcoin staking with 3% BTC yield target
- —Participants keep BTC in self-custody and post STX worth at least 5% of the bond; STX sets the participation limit, not collateral
- —The Genesis Bond started at 230 BTC, a second bond is about 500 BTC, against a 3,000 BTC program cap
- —About 97% of miner revenue comes from STX issuance; full-cap coverage is 1.42x versus a 2x target
- —A 28.8% drop in STX versus BTC over 175 days wipes out the 3% BTC yield; early exit forfeits unpaid rewards
Why it matters: The model offers institutions BTC-denominated yield without giving up custody, but hinges on STX issuance and price.
Source: TokenPost