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Bitcoin staking
Stake BTC
Trusted by the best
What is Bitcoin staking?
The main benefit of Bitcoin staking is that it increases Bitcoin's utility, allowing your Bitcoin assets to play an active role in securing various PoS ecosystems while earning extra rewards.
Since Bitcoin is not a PoS chain, projects use workarounds and mechanisms similar to Ethereum's Eigenlayer restaking to collateralize BTC that is ‘pledged’ toward securing other chains.
At Kiln, we've carefully selected the most promising projects and are preparing integrations with major custodians to support our institutional customers.
By staking your Bitcoin with Kiln, you can put your assets to work, earn rewards, and contribute to the growth and security of the broader Bitcoin ecosystem.
DIVERSIFICATION
Optimize rewards opportunities
Earn rewards on your Bitcoin holdings without selling, bridging or swapping to wBTC
INNOVATION
Increase Bitcoin’s utility
Drive the innovation of new applications within the Bitcoin staking ecosystem
SECURITY
Support blockchain security and growth
Staking Bitcoin helps bootstrap additional protocols' economic security by tapping into the massive idle supply.
BTC staking projects we’re supporting
BTC staking series:
Deep dive on two specific projects CORE and Babylon
Why stake BTC on Babylon?
What are the highlights and areas for review of this project?
Why stake BTC on CORE?
What are the highlights and areas for review of this project?
What can you expect from the different BTC staking protocols?
Deep dive into the BTC ecosystem with Kiln Rendez-Vous BTC staking edition:
BTC staking articles
Kiln BTC staking FAQ
What is BTC staking?
Bitcoin staking differs from traditional PoS staking because it doesn’t require Bitcoin to transition from PoW to PoS, as Ethereum did. Instead, Bitcoin holders can earn rewards by participating in staking without needing to convert or bridge their BTC to other assets or blockchains. With the development of new protocols utilizing upgrades to the Bitcoin network (BIP 340–342), Bitcoin holders can now directly participate in staking. The rewards and staking methods vary across different protocols.
What are the benefits of Bitcoin staking?
Bitcoin staking allows holders to earn rewards without converting their BTC to other assets, while also generating additional revenue streams on idle capital beyond price appreciation.
What are the main risks of BTC staking?
While Bitcoin staking offers several benefits, there are also some risks to consider:
- Protocol Risk: New and emerging staking protocols may not be as secure or well-established as the Bitcoin network itself, potentially exposing stakers to smart contract vulnerabilities or protocol failures.
- Liquidity Risk: Staking often requires locking up BTC for a set period, meaning it may not be immediately accessible if market conditions change or if you need liquidity.
- Slashing Risk: Some staking protocols have "slashing" mechanisms, where a portion of staked assets could be forfeited as penalties for misbehavior, such as validator downtime or network issues.
As with any investment, it's important to carefully assess these risks before participating in BTC staking.
What are the main protocols of Bitcoin staking?
Key Bitcoin staking protocols include Babylon, Core, Botanix, and Mezo. Each protocol provides unique staking models, so it's important to evaluate them based on your goals and risk tolerance.
Does Kiln support Bitcoin staking?
Yes, Kiln supports Bitcoin staking for Babylon, Core, and Stacks on testnet, with custodial support from partners like Fireblocks, Anchorage, and Foredefi. Please reach out to our team for more details.