BSD integrates Dual Stacking feature, allowing sBTC collateral in the vault to simultaneously earn 5% annualized yield

ChainCatcher reported that the Bitcoin-based stablecoin protocol BSD has officially launched the Dual Stacking feature. Users who lock sBTC collateral in the BSD vault can now simultaneously earn a 5% annualized yield on sBTC.

This means that the same collateral can serve two roles at once: securing users' credit lines and earning Bitcoin returns. The vault will begin generating yields in the next Stacking cycle (around December 3), with the first batch of rewards expected to be distributed around December 17.

According to BSD's official statement, the protocol's minimum annualized borrowing rate is currently 0%. The borrowing cost for some vaults is about 0.1%, so after earning a 5% yield on the collateral, users' net borrowing cost can be reduced to -4.9%, effectively allowing users to be rewarded for borrowing funds.

Dual Stacking is the latest liquidity incentive mechanism launched by the Stacks protocol, and the BSD protocol is still in its private testnet phase.