StXTZ Launches on Etherlink Offering Liquid Staking for Tezos’ XTZ

The stXTZ token has been officially launched on Etherlink, an EVM-compatible Layer 2 blockchain built on the Tezos Smart Rollup framework, providing users with liquid staking capabilities for Tezos’ native XTZ token. Through stXTZ, users can stake their XTZ while retaining full liquidity, allowing them to continue earning native staking rewards while participating in Etherlink’s high-performance DeFi solutions [1]. This innovation is led by the stacy.fi team, which collaborates with the core developers of Ubinetic AG and the youves DAO, with smart contract operations powered by Acurast technology [1].

Etherlink’s bridging infrastructure facilitates this integration by allowing stXTZ tokens to be restricted on the Tezos Layer 1, while ERC-20 proxy tokens are minted on Etherlink’s Layer 2. This ensures that DeFi applications on Etherlink can leverage real-time pricing data from stXTZ staking pools via an Acurast-driven oracle [1]. The integration addresses a key challenge in the DeFi space: how to maintain staking exposure while still accessing the fast and cost-efficient Layer 2 environment [1].

According to David Relkin, Head of DeFi at Nomadic Labs, the move represents a significant milestone in enhancing the utility of Tezos-based assets. Users can now benefit from the security and rewards of staking on Tezos’ Layer 1, while simultaneously engaging in high-performance DeFi protocols on Etherlink’s Layer 2 infrastructure [1]. This dual-layer approach not only improves capital efficiency but also broadens the range of use cases for staked XTZ, including lending, trading, and collateralization [1].

The stXTZ token is already being integrated into several DeFi protocols on Etherlink, including Superlend, Curve Finance, IguanaDex, Hanji, and Uniswap V3 on oku.trade. These integrations allow users to trade, lend, and earn with stXTZ while continuing to accrue staking rewards [1]. The youves DAO, which oversees the stXTZ pool and token issuance, plays a central role in governing the asset on behalf of YOU token stakers [1].

This development aligns with the broader trend of using Layer 2 solutions to enhance the flexibility and efficiency of native staking mechanisms. As liquid staking continues to grow in popularity—now representing over $45 billion in value—integrations like stXTZ on Etherlink are likely to attract more developers and liquidity providers to the Tezos ecosystem [1]. The move also supports the long-term growth of both platforms by increasing the capital efficiency of staked assets and encouraging further innovation in cross-chain DeFi applications [1].

Source: [1] StXTZ Is Introduced On Etherlink, Granting Liquid Staking ... (https://financefeeds.com/stxtz-is-introduced-on-etherlink-granting-liquid-staking-capabilities-to-tezos-high-performance-l2/)