Overview
Last updated
Last updated
Acre is a simple BTC-in BTC-out experience, where users can deposit BTC, and in return, receive a receipt token, which denotes fractional ownership of BTC in the Acre vaults.
BTC deposited into Acre is bridged via tBTC to Ethereum and then used to provide economic security for protocols across the EVM ecosystem and beyond.
Similar to all other proof-of-stake chains, providing economic security is rewarded. These rewards are based on amount of value and stability within these network. With Acre, these rewards will auto-compound and will be fully-redeemable back into bitcoin.
stBTC is a receipt token for the deposit. It is a non-rebasing token on Ethereum, meaning it increases in value over time compared to BTC. In order to redeem rewards, a portion or the entire stBTC token can be used to redeem back to Bitcoin. The stBTC holder has control over deposit and redemption of the underlying Bitcoin.
ACRE is the governance token on Acre that manages the parameters, fees, and contract upgrades of the Acre protocol. To participate in DAO governance matters, users need 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 is the voting token on Acre and is used to make collective decisions regarding the Acre treasury, stBTC specifications, and all other protocol matters.
veACRE holders will additionally approve and direct the allocation of the deposited bitcoin TVL in Acre that is providing the economic security and earning rewards.
Locking
Users receive veACRE by locking their ACRE tokens for 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.
stBTC can be redeemed for the underlying BTC and associated rewards at any time, however there is a withdrawal delay and fee associated with each transaction. This withdrawal delay is due to pulling the underlying tokenized Bitcoin out of the smart contract and trustlessly redeeming back to the Bitcoin network.
