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 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, which 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. Users must redeem their stBTC holdings on the Acre protocol to receive rewards and return the principal into BTC.

ACRE Token

ACRE is the governance token on Acre. 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

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 can direct the allocation of deposited BTC.

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.

Withdrawals

stBTC can be redeemed for the underlying BTC and associated rewards at any time, however there is a withdrawal delay associated with each withdrawal.