Overview
Staking on Acre is a simple BTC-in BTC-out process, where users can deposit BTC, and in return, receive stBTC, which denotes fractional ownership of BTC in the Acre vaults.
Flow of Funds
BTC deposited into Acre is then staked onto various chains that use BTC for economic security via Proof of Stake consensus.
These validators accrue yield in the form of L2 reward tokens and/or BTC. These rewards are then converted to tBTC. All rewards from Acre validators are redeemable for stBTC holders, minus protocol fees.
stBTC is a non-rebasing rewards token, meaning it increases in value over time compared to BTC. To receive rewards and return principal back into BTC, users must redeem their stBTC holdings on the Acre protocol.
ACRE Token
ACRE is the governance token on Acre. In order to participate in DAO governance matters, users needs to lock their ACRE in exchange for vote-escrowed ACRE, also known as veACRE. After locking ACRE tokens, users can participate in governance for the Acre protocol.
Acre locking details can be found in the veACRE section below.
veACRE
veACRE is the voting token on Acre and is used to make collective decisions regarding the Acre treasury, stBTC specifications, and other protocol matters.
veACRE holders are able to direct the allocation of deposited BTC.
Locking
- Users receive veACRE by locking their ACRE tokens for a period of up to 52 weeks.
- ACRE locked for the maximum 52-week period receive 1 veACRE for each ACRE locked.
- The amount of veACRE a user has decays linearly over the duration of their lock.
- The perpetual lock option keeps a continuous 1:1 ratio of veACRE per ACRE locked, without the linear decay.
Withdrawals
stBTC can be redeemed for the underlying BTC and associated rewards whenever, but there is a withdrawal delay. This delay is dependent on X Y and Z reasons. Withdrawals will typically be processed in XX minutes. You can watch your withdrawal in the contracts here[link].
Single withdrawals are limited to XX BTC.