BSD integrates Dual Stacking functionality, allowing sBTC collateral in the vault to simultaneously earn a 5% annual yield.

ChainCatcher reports that the Bitcoin-based stablecoin protocol BSD has officially launched the Dual Stacking feature. Users can now earn a 5% annualized yield on sBTC collateral locked in BSD Vaults.

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

According to BSD officials, the protocol's minimum annualized borrowing rate is currently 0%. For some vaults, the borrowing cost is about 0.1%. After earning a 5% yield on collateral, users' net borrowing cost can drop to -4.9%, which effectively means users are paid to borrow funds.

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