stBTC
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stBTC is a non-rebasing ERC4626 token that represents bitcoin deposited into Acre.
The ERC4626 standard is a tokenized vault standard, which is designed for the efficient management of vaults and rewards. stBTC tokens are composable in DeFi and have diverse utility.
Today there is a visible receipt token on certain interfaces of the Acre DApp in addition to the smart contract of stBTC, however with our bitcoin-first approach for launch there is no way to mint or move stBTC. Any decision to allow for minting or moving stBTC will be voted on by the Acre DAO.
When Acre vaults produce mainnet rewards for providing liquidity and economic security, these will automatically accrue to the stBTC ERC4626 vault. When a user withdraws their bitcoin, or redeems stBTC, they will receive their deposited bitcoin amount, plus rewards that have accrued during the period of their deposit.
stBTC is a non-rebasing token, which means that the balance of stBTC does not increase in a users wallet as rewards accrue. Instead, the amount of bitcoin that stBTC can be redeemed for increases.
Rebasing tokens, on the other hand, increase the token balance in the users wallet as rewards accrue to the vault.
