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Stake bitcoin with Botanix and Kiln, enterprise-grade staking
Botanix
What is Botanix?
The Botanix protocol is a Bitcoin Layer 2 (L2) network designed to bring Ethereum-style smart contract capabilities and DeFi infrastructure to Bitcoin while remaining native to BTC and securing assets through Bitcoin’s robust economic security.
At the core of Botanix lies the Spiderchain; A decentralized multi-signature bridging layer secured by a PoS consensus mechanism and network of node operators that allows for trust minimized bridging between Bitcoin and the Botanix EVM. A rotating group of randomly selected node operators control the bridging vault using MuSig2 (multi-signature cryptography) for securing deposits and honoring withdrawals without any single point of failure.
Download our 1-pager and learn everything you need to know about Botanix.
Deep-dive into the BTC staking ecosystem through our detailed blog post.
How does Botanix actually enable bitcoin staking?
Botanix staking involves a 3-layer system with:
- The Bitcoin blockchain - every Botanix node operator also runs a Bitcoin node
- Botanix EVM - an EVM compatible blockchain to host decentralized applications & transact using BTC for gas fees
- Spiderchain - An intermediary layer between Bitcoin and Botanix EVM to bridge and secure BTC
Stakers need to bridge their BTC from the Bitcoin blockchain to the Botanix EVM where they will receive an equivalent amount of BTC. Stakers then deposit their BTC into a permissionless smart contract to mint stBTC which earns yield in BTC paid by users of the network through gas fees. Withdrawals are available at any time where depositors can redeem their stBTC for BTC without lockups or intermediaries.
Watch the Kiln Rendez-Vous talk at EthCC '24 with Botanix, CoreDao and Babylon to learn more about bitcoin staking:
What is stBTC?
stBTC is a non-rebasing wrapped liquid staking token that represents staked Bitcoin in the protocol. stBTC maintains a fixed token count while increasing in value relative to Bitcoin over time. Each stBTC token becomes worth more than 1 BTC as staking rewards accrue through gas fees. When withdrawing/redeeming, you will receive more BTC than was originally deposited!
Why should you stake your BTC?
The Bitcoin network doesn’t support staking as a Proof-of-Work network. Hence it is not possible to generate rewards from bitcoins without bridging assets to another blockchain like Ethereum. Idle bitcoins create opportunity costs by leaving staking rewards out of the table.
Botanix makes it possible to generate rewards from bitcoin assets maximizing capital efficiency of idle bitcoins.
You can stake your BTC to:
- 1Put your treasury to work
- 2Diversify and earn, while contributing to blockchains decentralization
- 3Bring new opportunities by enabling your users to earn staking rewards
Why should you stake your BTC with Kiln?
Kiln is the leading enterprise-grade staking and DeFi platform, enabling institutional customers to stake BTC, and to whitelabel BTC staking functionality into their offering. Our platform is API-first and enables fully automated validators, rewards, data, and commission management.
Our clients can stake their tokens from our dashboard, a hardware wallet, a browser wallet, a B2B custodian, a crypto exchange, or just their favorite investment app. Kiln makes staking BTC easy, secure, and accessible to everyone.
Kiln has been closely working with Botanix to make sure we provide the best bitcoin staking experience as possible.
We are serving thousands of businesses worldwide so that everyone can securely and seamlessly:
- Excellent track record in staking on 50+ protocols, managing more than $11B in stakes.
- Trusted by industry leaders such as Ledger, Lido, Coinbase Cloud, Bitpanda, Crypto.com and many more!
- Non-custodial, work with your existing custodians solutions e.g.Ledger, Fireblocks
- SOC 2 Type II certified and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)
Protocol Card
Token
BTC
GRR
Estimated ~5-10%
Orchestrator nodes
16 nodes at the start
Consensus
PoA then PoS
Slashing
Upcoming
Botanix FAQ
What does Proof-of Stake mean?
Proof-of-Stake (PoS) is a type of consensus mechanism used to validate cryptocurrency transactions. Through PoS, validators can contribute to the block production of a chain while keeping environmental concerns to a minimum, which is becoming an increasingly large issue in Proof-of-Work.
By staking capital rather than energy, validators risk losing a portion of their value and future potential for staking by misbehaving while creating blocks. This incentives collaboration and fair practices while validating information in a similar way that PoW has with incentives and punishments to curtail malicious activity in the consensus process.
Is there a minimum and maximum amount to stake for BTC?
There is no minimum stake amount.
Do I maintain custody of my BTC tokens? Is BTC staking non-custodial?
On Botanix you have to bridge your BTC that will be secured through the Orchestrators multi-sig. You can claim your BTC back at any time by bridging them back to the Bitcoin blockchain.
What are the risks associated with staking BTC?
Staked bitcoins can be slashed if a validator behaves dishonestly with the network. Slashes can be partial according to slashing parameters on each protocol.
How do rewards work on Botanix?
Botanix staking rewards come from the fees paid to pass transactions on the Botanix network, as the chain uses BTC for gas.
What is the average block time on Bitcoin?
The average block time is 10 minutes on Bitcoin.
What is a Gross Reward Rate (GRR) and how is it different from a Net Reward Rate (NRR)?
In the context of Proof-of-Stake blockchains, the gross reward rate (GRR) refers to the total or gross amount of rewards earned from staking before deducting any fees or expenses. This is a reward rate that fluctuates with the operations of the protocol and the performance of validators, it is not set by Kiln. The net reward rate (NRR), on the other hand, takes into account the deductions or expenses, providing a measure of the actual rewards received after subtracting fees or costs.
Where can I learn more about Botanix?
You can learn more about Botanix on their official documentation and on the Botanix website.