sBTC is a synthetic Bitcoin token enabled by the Synthetix protocol. It tracks the price of Bitcoin through price feeds supplied by Chainlink's decentralised network of oracles. Unlike typical cryptocurrencies that represent the actual asset, sBTC serves as a synthetic representation of Bitcoin.
sBTC operates as a synthetic derivative of Bitcoin, collateralised with SNX tokens at a minimum 400% collateralisation ratio. It is created through the Synthetix protocol, leveraging smart contracts on Ethereum and EVM-compatible chains. The price of sBTC is determined by Chainlink oracles. Key processes include staking SNX tokens to mint sUSD (used to acquire sBTC) and trading sBTC on the Synthetix Exchange, a peer-to-contract platform.
sBTC has diverse applications across various sectors:
sBTC's development is intrinsically linked to the Stacks protocol. Initially launched as Blockstack in 2013, the Stacks mainnet was introduced in 2021, focusing on integrating smart contract functionality within Bitcoin. The sBTC roadmap was released in 2023, detailing a phased launch to establish a fully decentralised signer network by February 2025. It employs Clarity smart contracts to manage operations, ensuring decentralisation and security, while enhancing Bitcoin's programmability for DeFi use cases.