What is StakeStone (STO)?

Deep Dive

1. Purpose & Value Proposition

StakeStone addresses fragmented liquidity in DeFi by creating a unified infrastructure for cross-chain yield optimization. Its core products—STONE (yield-bearing ETH), SBTC (yield-bearing BTC), and LiquidityPad (customizable vaults)—allow users to deposit assets once and earn yield across multiple chains. By eliminating the need for wrapped tokens, StakeStone reduces slippage and enhances capital efficiency for protocols seeking liquidity (StakeStone Docs).

2. Technology & Architecture

Built on Ethereum with LayerZero interoperability, StakeStone’s architecture supports seamless asset transfers across 20+ chains. The protocol uses ERC-20 STO tokens for governance and veSTO (vote-escrowed tokens) to decentralize decision-making. Key technical features include:
- Non-rebasing yield assets: STONE/SBTC balances remain fixed while rewards accumulate internally.
- Modular vaults: LiquidityPad lets protocols create tailored liquidity strategies (e.g., USD1 stablecoin vaults on BNB Chain).
- Deflationary mechanics: Bribes paid in STO are partially burned, creating sustainable tokenomics (StakeStone Whitepaper).

3. Tokenomics & Governance

STO’s supply is capped at 1 billion, with 22.5% circulating as of October 2025. Locking STO as veSTO grants:
- Voting power: Direct emissions to liquidity pools or adjust protocol fees.
- Yield boosts: Up to 6% extra APY for liquidity providers.
- Bribe rewards: Share fees from protocols incentivizing liquidity.
The treasury, funded by platform fees and bribes, backs STO’s value and funds ecosystem growth.

Conclusion

StakeStone positions itself as a cross-chain liquidity backbone, merging governance-driven incentives with institutional-grade stablecoin integrations. Its veSTO model encourages long-term participation while its omnichain infrastructure tackles DeFi’s liquidity fragmentation. How might StakeStone’s focus on compliant stablecoins like USD1 reshape cross-border DeFi adoption?