Binance Academy
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What Is StakeStone (STO)?
Key Takeaways
StakeStone is a decentralized protocol designed to improve how liquidity moves across different blockchain networks.
StakeStone enables seamless cross-chain liquidity by using omnichain infrastructure and LayerZero technology.
It focuses on making assets like ether (ETH) and bitcoin (BTC) more usable in decentralized finance (DeFi) by addressing issues like fragmented liquidity, inefficient yield generation, and complex cross-chain operations.
What Is StakeStone?
StakeStone is a blockchain protocol that creates an "omnichain" liquidity infrastructure. This means it helps assets flow smoothly between different blockchains. The protocol aims to solve common problems in DeFi, where assets are often stuck in isolated networks, making it hard for users to move them or earn rewards efficiently.
The project introduces multiple services and tools, including:
STONE: A token that represents staked ETH and earns yields while remaining usable in DeFi.
SBTC and STONEBTC: Tokens that allow users to make their BTC liquid and yield-generating across multiple chains.
LiquidityPad: A platform that helps new blockchains attract and manage liquidity.
STO Token: A governance token that lets users vote on how the protocol operates.
How StakeStone Works
StakeStone operates through a combination of technical components and governance mechanisms. Below are some of its main features and how they function.
STONE: yield-bearing ETH
STONE is a token that represents staked ETH. When users deposit ETH into StakeStone, they receive STONE, which earns staking rewards while remaining usable in DeFi applications like lending or trading. This solves the problem of ETH holders having to choose between staking and DeFi participation.
STONE is designed as an Omnichain Fungible Token (OFT) using LayerZero, a technology that enables seamless movement across blockchains. Its price is set by the protocol’s smart contract, not decentralized exchanges (DEXs), which can create arbitrage opportunities if DEX prices differ.
SBTC and STONEBTC: liquid and yield-bearing BTC
StakeStone introduced two tokens to address the limited functionality of Bitcoin smart contracts:
SBTC (liquid BTC): Combines various BTC derivatives (e.g., WBTC, BTCB) into a single, liquid token that can be used across chains like Ethereum, BNB Chain, and others. Users deposit BTC derivatives into a vault, and the Minter issues SBTC, which supports DeFi activities like trading or lending.
STONEBTC (yield-bearing BTC): Builds on SBTC by generating yields through strategies in DeFi, centralized-decentralized finance (CeDeFi), and real-world assets (RWA). Users deposit SBTC or other BTC derivatives, and STONEBTC automatically allocates assets to optimize returns.
These tokens make Bitcoin more versatile in DeFi, reducing fragmentation and improving capital efficiency. StakeStone integrates with networks like Mantle, Linea, and Zircuit to ensure SBTC and STONEBTC are widely usable.
LiquidityPad
LiquidityPad is a platform that helps emerging blockchains attract and manage liquidity. It acts as a bridge between Ethereum’s established DeFi ecosystem and newer networks. Users deposit assets like ETH, BTC derivatives, or stablecoins into ecosystem-specific vaults, receiving LP tokens in return. These tokens can be used in both Ethereum DeFi and the emerging chain’s ecosystem, capturing yields from both.
This bidirectional flow allows new blockchains to access Ethereum’s deep liquidity while enabling Ethereum users to benefit from yield opportunities in growing ecosystems. LiquidityPad reduces reliance on unsustainable token incentives, promoting long-term growth.
Omnichain liquidity infrastructure
StakeStone’s core innovation is its omnichain liquidity system, which eliminates the need for traditional bridges that are slow and risky. Instead, it uses a Credit Margin Engine (CME), a market-making system that:
Maintains consistent liquidity across chains.
Optimizes prices to reduce slippage and ensure fairness.
Enables one-click cross-chain transactions, unlike the multi-step processes of traditional bridges.
The CME works with Native’s infrastructure, which includes automated market-making and a universal compatibility engine. As of May 2025, StakeStone supports over 20 chains and 100 protocols.
Governance and the STO Token
The STO token is central to StakeStone’s governance. Users can lock STO to receive veSTO, which grants voting power. For example, veSTO holders decide how to allocate liquidity incentives across STONE-Fi, BTC-Fi, and LiquidityPad pools. They also receive yield boosts based on their locked tokens.
The governance system includes:
Bribe system: Protocols deposit STO or partner tokens to attract liquidity. STO bribes are partially burned, reducing token supply, while partner token bribes diversify the protocol’s treasury.
Swap mechanism: STO holders can exchange tokens for treasury assets (e.g., partner tokens) when arbitrage opportunities arise, creating value and maintaining deflationary pressure.
Vesting: Converting veSTO back to STO requires a 30-day vesting period, encouraging long-term commitment.
StakeStone’s Vision
StakeStone aims to be the foundational infrastructure for omnichain liquidity, similar to how TCP/IP enables the internet. It envisions a blockchain ecosystem where:
Liquidity flows seamlessly between chains.
Capital is used efficiently without high costs or delays.
New blockchains can innovate without struggling to attract liquidity.
The protocol plans to achieve this through ongoing technical improvements, partnerships with chains like Scroll and Mantle, and a focus on transparency and sustainability.
STO on Binance HODLer Airdrops
On May 2, 2025, Binance announced STO as the 17th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simpler Earn and/or On-Chain Yields products from April 27 to 29 were eligible to receive STO airdrops. A total of 15 million STO tokens were allocated to the program, accounting for 1.5% of the total token supply.
STO was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.
Closing Thoughts
StakeStone is a decentralized protocol that tackles liquidity challenges in DeFi by offering tools like STONE, SBTC, STONEBTC, and LiquidityPad. It uses an omnichain infrastructure to connect blockchains, optimize yields, and simplify asset movement. With a governance system driven by the STO token and a focus on security, StakeStone aims to create a more interconnected and efficient blockchain ecosystem.
Further Reading
What Is Blockchain and How Does It Work?
What Is Layer 1 in Blockchain?
What Is Cross-Chain Interoperability?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
StakeStone is a decentralized protocol designed to improve how liquidity moves across different blockchain networks.
StakeStone enables seamless cross-chain liquidity by using omnichain infrastructure and LayerZero technology.
It focuses on making assets like ether (ETH) and bitcoin (BTC) more usable in decentralized finance (DeFi) by addressing issues like fragmented liquidity, inefficient yield generation, and complex cross-chain operations.
What Is StakeStone?
StakeStone is a blockchain protocol that creates an "omnichain" liquidity infrastructure. This means it helps assets flow smoothly between different blockchains. The protocol aims to solve common problems in DeFi, where assets are often stuck in isolated networks, making it hard for users to move them or earn rewards efficiently.
The project introduces multiple services and tools, including:
STONE: A token that represents staked ETH and earns yields while remaining usable in DeFi.
SBTC and STONEBTC: Tokens that allow users to make their BTC liquid and yield-generating across multiple chains.
LiquidityPad: A platform that helps new blockchains attract and manage liquidity.
STO Token: A governance token that lets users vote on how the protocol operates.
How StakeStone Works
StakeStone operates through a combination of technical components and governance mechanisms. Below are some of its main features and how they function.
STONE: yield-bearing ETH
STONE is a token that represents staked ETH. When users deposit ETH into StakeStone, they receive STONE, which earns staking rewards while remaining usable in DeFi applications like lending or trading. This solves the problem of ETH holders having to choose between staking and DeFi participation.
STONE is designed as an Omnichain Fungible Token (OFT) using LayerZero, a technology that enables seamless movement across blockchains. Its price is set by the protocol’s smart contract, not decentralized exchanges (DEXs), which can create arbitrage opportunities if DEX prices differ.
SBTC and STONEBTC: liquid and yield-bearing BTC
StakeStone introduced two tokens to address the limited functionality of Bitcoin smart contracts:
SBTC (liquid BTC): Combines various BTC derivatives (e.g., WBTC, BTCB) into a single, liquid token that can be used across chains like Ethereum, BNB Chain, and others. Users deposit BTC derivatives into a vault, and the Minter issues SBTC, which supports DeFi activities like trading or lending.
STONEBTC (yield-bearing BTC): Builds on SBTC by generating yields through strategies in DeFi, centralized-decentralized finance (CeDeFi), and real-world assets (RWA). Users deposit SBTC or other BTC derivatives, and STONEBTC automatically allocates assets to optimize returns.
These tokens make Bitcoin more versatile in DeFi, reducing fragmentation and improving capital efficiency. StakeStone integrates with networks like Mantle, Linea, and Zircuit to ensure SBTC and STONEBTC are widely usable.
LiquidityPad
LiquidityPad is a platform that helps emerging blockchains attract and manage liquidity. It acts as a bridge between Ethereum’s established DeFi ecosystem and newer networks. Users deposit assets like ETH, BTC derivatives, or stablecoins into ecosystem-specific vaults, receiving LP tokens in return. These tokens can be used in both Ethereum DeFi and the emerging chain’s ecosystem, capturing yields from both.
This bidirectional flow allows new blockchains to access Ethereum’s deep liquidity while enabling Ethereum users to benefit from yield opportunities in growing ecosystems. LiquidityPad reduces reliance on unsustainable token incentives, promoting long-term growth.
Omnichain liquidity infrastructure
StakeStone’s core innovation is its omnichain liquidity system, which eliminates the need for traditional bridges that are slow and risky. Instead, it uses a Credit Margin Engine (CME), a market-making system that:
Maintains consistent liquidity across chains.
Optimizes prices to reduce slippage and ensure fairness.
Enables one-click cross-chain transactions, unlike the multi-step processes of traditional bridges.
The CME works with Native’s infrastructure, which includes automated market-making and a universal compatibility engine. As of May 2025, StakeStone supports over 20 chains and 100 protocols.
Governance and the STO Token
The STO token is central to StakeStone’s governance. Users can lock STO to receive veSTO, which grants voting power. For example, veSTO holders decide how to allocate liquidity incentives across STONE-Fi, BTC-Fi, and LiquidityPad pools. They also receive yield boosts based on their locked tokens.
The governance system includes:
Bribe system: Protocols deposit STO or partner tokens to attract liquidity. STO bribes are partially burned, reducing token supply, while partner token bribes diversify the protocol’s treasury.
Swap mechanism: STO holders can exchange tokens for treasury assets (e.g., partner tokens) when arbitrage opportunities arise, creating value and maintaining deflationary pressure.
Vesting: Converting veSTO back to STO requires a 30-day vesting period, encouraging long-term commitment.
StakeStone’s Vision
StakeStone aims to be the foundational infrastructure for omnichain liquidity, similar to how TCP/IP enables the internet. It envisions a blockchain ecosystem where:
Liquidity flows seamlessly between chains.
Capital is used efficiently without high costs or delays.
New blockchains can innovate without struggling to attract liquidity.
The protocol plans to achieve this through ongoing technical improvements, partnerships with chains like Scroll and Mantle, and a focus on transparency and sustainability.
STO on Binance HODLer Airdrops
On May 2, 2025, Binance announced STO as the 17th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simpler Earn and/or On-Chain Yields products from April 27 to 29 were eligible to receive STO airdrops. A total of 15 million STO tokens were allocated to the program, accounting for 1.5% of the total token supply.
STO was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.
Closing Thoughts
StakeStone is a decentralized protocol that tackles liquidity challenges in DeFi by offering tools like STONE, SBTC, STONEBTC, and LiquidityPad. It uses an omnichain infrastructure to connect blockchains, optimize yields, and simplify asset movement. With a governance system driven by the STO token and a focus on security, StakeStone aims to create a more interconnected and efficient blockchain ecosystem.
Further Reading
What Is Blockchain and How Does It Work?
What Is Layer 1 in Blockchain?
What Is Cross-Chain Interoperability?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.