Unlike cryptocurrencies like Ethereum and Solana, Bitcoin does not utilize a Proof-of-Stake consensus mechanism. Instead, Bitcoin relies on Proof-of-Work, where miners deploy computing power to compete for the privilege of adding the next block to the blockchain and earning the associated reward (currently set at 3.125 BTC).
Despite the fact that Bitcoin doesn’t have native staking, there are plenty of ways to put your BTC to work which are very similar to staking. In this article, we’ll showcase different methods you can use to temporarily lock up your Bitcoin in order to earn rewards.
| Asset required to stake | Rewards paid in | Current APY* | |
|---|---|---|---|
| Stacks | STX (Bitcoin staking coming soon) | BTC | 7.1% |
| Babylon | BTC | BABY | 0.04% – 0.61% |
| Lombard |
|
LBTC (convertible to BTC) |
|
| Core | BTC and / or CORE | CORE and / or BTC (depending on which coins are staked) |
|
| Starknet |
|
Depends on chosen strategy | Depends on chosen strategy |
*Reported APY as of May 2026
How to stake Bitcoin
If you would like to put your Bitcoin to work, you have quite a few options to choose from. Depending on the method you use, you could earn rewards in the form of BTC, in the form of another token, or a combination of both.
When staking Bitcoin, it’s important to manage your expectations. The APYs are usually quite modest, but Bitcoin staking can still be worth your time if your BTC would just be sitting idly in your wallet otherwise.
Stacks
Stacks is a layer 2 that enables smart contracts secured by Bitcoin. Blocks on the Stacks network are anchored to the Bitcoin blockchain, which means it’s equally as difficult to reverse a Stacks transaction as it is to reverse a Bitcoin transaction.
Thanks to its smart contract capabilities, Stacks can be used as a platform to deploy DeFi protocols, custom tokens, decentralized exchanges and all other typical blockchain-based applications. The Stacks platform uses the Clarity smart contract programming language, which is specialized for predictable behavior and security.
The native token of Stacks is STX, and it’s used to incentivize miners to keep the network secure. STX is required to pay for transactions on the Stacks network.
STX holders can “stack” their tokens to earn rewards paid out in BTC. These rewards are sourced from miners, who commit BTC in order to participate in the Stacks mining system.
If you hold STX, you can stack it in a variety of ways:
- Use a stacking pool such as Fast Pool or Xverse Pool. This is the simplest way to stack STX for most holders.
- Use a liquid stacking protocol like LISA or Stacking DAO to retain your STX liquidity while still earning rewards.
- Stack solo (suitable for large STX holders).
- Stack through a centralized crypto exchange.
If you want to participate in stacking, we recommend you visit the official Stacks app.
It’s worth highlighting Stacks is looking to upgrade its stacking mechanism to Bitcoin Staking, which will require participants to lock up both STX and BTC. At launch, Bitcoin Staking will target a 3% BTC APY. The project’s Bitcoin Staking whitepaper was released in May 2026.
Babylon
Babylon is a project that aims to leverage BTC which would otherwise be sitting idly in wallets to provide cryptoeconomic security to blockchains. The protocol provides a way for BTC holders to temporarily lock up their BTC and earn rewards in return.
At the core of Babylon is Babylon Genesis, a layer 1 blockchain that orchestrates a network of BSNs (Bitcoin Supercharged Networks), which are blockchains relying on Bitcoin for security.
Validation on Babylon uses a two-part staking system. The Genesis chain has two validator categories: validators who stake the native BABY token, and “finality providers” supported by staked BTC. Finality providers take part in CometBFT-based consensus rounds, helping protect block production, verify transactions, and deliver finality for BSNs.
If you want to stake Bitcoin on Babylon, you can do so through the Babylon staking interface, where you can connect your Bitcoin wallet and choose from a diverse range of finality providers. Rewards are earned in Babylon’s native token called BABY.
Lombard
Lombard is a project that’s bringing Bitcoin into the DeFi (decentralized finance) ecosystem. Through Lombard, BTC holders can stake their coins to mint LBTC, a token that’s fully backed by Bitcoin and generates yield over time.
This is a form of liquid staking, where the staker retains the liquidity of their staked coins while still earning yield. Users can do whatever they wish with their LBTC tokens, for example deposit them into various DeFi protocols that support the asset.
Lombard also offers a product called Bitcoin Earn, which is a straightforward method for users to put their BTC to work across the DeFi ecosystem. Bitcoin Earn is a vault product that accepts BTC and a variety of BTC-derived tokens including LBTC, BTC.b and WBTC.
After depositing funds into Bitcoin earn, users receive BTCe tokens, which represent their position in the vault. The token’s value increases over time as the position accrues compound yield.
If you’re interested in earning yield on your Bitcoin through Lombard, visit the protocol’s official app.
Core
Core is a layer 1 EVM-compatible blockchain platform that is secured by Bitcoin. Developers can easily create any type of decentralized application on the Core blockchain or port a DApp over from Ethereum, as Core supports the same tooling that’s available for Ethereum developers.
The consensus mechanism utilized by Core is called Satoshi Plus and requires the participation of three stakeholder groups:
- Bitcoin holders who temporarily lock up their coins to vote for Core validators
- Bitcoin miners who delegate their hash power to vote for Core validators
- CORE token holders who temporarily lock up their tokens to vote for Core validators
If you hold Bitcoin or CORE tokens (or both), you can earn rewards by participating in Satoshi Plus consensus and helping secure the Core network.
The staking rewards are sourced from CORE tokens created by the Core protocol, as well as CORE tokens users spend as transaction fees while using the network.
Bitcoin staking rewards are structured in tiers, with the highest yields available to participants who are most closely aligned with the Core network, measured by the amount of CORE they have staked relative to their staked Bitcoin. As a result, Bitcoin stakers are encouraged to also stake CORE in order to qualify for the top reward levels.
Starknet
Starknet is an Ethereum Layer 2 network designed to make blockchain applications faster, cheaper, and more scalable. It uses validity rollup technology to process transactions off-chain while still inheriting Ethereum’s security. Starknet supports DeFi, gaming, wallets, and other on-chain applications through its native ecosystem and developer framework.
Bitcoin staking on Starknet allows BTC holders to participate in staking using supported tokenized Bitcoin assets. Since native BTC only exists on the Bitcoin network, users must first hold a Starknet-supported tokenized version of Bitcoin, such as WBTC, LBTC, SolvBTC, or tBTC.
Users with any amount of supported Bitcoin on Starknet can delegate their assets to validators. Delegators do not need to run nodes and can earn a share of validator rewards.
Alternatively, users can obtain Bitcoin liquid-staked tokens, or LSTs, and use them across DeFi strategies on Starknet to earn rewards.
To get started, users can move assets from Bitcoin to Starknet through providers such as Atomiq Labs, Garden Finance, or LayerSwap, or bridge tokenized Bitcoin from Ethereum or compatible L2s using StarkGate. Once the supported Bitcoin asset is in a Starknet wallet, users can stake through the Ready or Braavos wallet.
FAQs
Can you stake Bitcoin?
Even though the Bitcoin network itself doesn’t use Proof-of-Stake, there exist other blockchains that are anchored to Bitcoin and depend on it for their security. Some of these networks are secured through Bitcoin staking, which involves users temporarily locking up their BTC through specific transaction types. You can stake Bitcoin to secure networks like Stacks, Babylon and Core.
Depending on the specific type of BTC staking you’re participating in, the rewards could be paid out either in BTC or in another token.
How does Bitcoin staking work?
Bitcoin staking typically works through time locks, which is a mechanism available in Bitcoin which restricts the spending of specific coins until a specified future time is reached. In this way, users can stake Bitcoin in a self-custodial manner without having to wrap their BTC or bridge it to another chain.
However, some Bitcoin staking methods (for example on Starknet) require users to mint liquid staking BTC tokens, which are then deployed across various decentralized finance applications to earn yield.
Is Bitcoin staking safe?
Bitcoin staking is generally low risk, but still riskier than simply holding BTC in your regular wallet. Depending on the type of Bitcoin staking you’re doing, you could be exposed to smart contract risks, slashing risks, or counterparty risk if you’re using a custodial Bitcoin staking method.
Source:: How to Stake BTC: The Best Bitcoin Staking Platforms Explained