The Bitcoin full-chain stablecoin protocol Satoshi Protocol has deployed Bitlayer and supports BTC and stBTC as collateral
This article will provide an in-depth introduction to the development of the Satoshi Protocol and the stablecoin SAT, while also discussing future development possibilities and introducing its operation on Bitlayer and the efficiency of fund unlocking.Recently, the Bitcoin ecosystem stablecoin lending project Satoshi Protocol has completed the deployment of the Bitlayer mainnet and has reached a strategic partnership with the Bitcoin liquidity financial layer project Lorenzo, supporting stBTC as collateral for minting the stablecoin SAT.
This article will provide an in-depth introduction to the development of the Satoshi Protocol and the stablecoin SAT, while also explaining future development possibilities and introducing its operation on Bitlayer and ways to unlock capital efficiency.
Expanding the Bitcoin Ecosystem, Supporting BTC-Related Collateral
The expansion to Bitlayer was already part of the plan and is an important step towards expanding the Bitcoin ecosystem's full-chain stablecoin. The support for Lorenzo's stBTC also aligns with the recent financing boom in the Babylon BTC re-staking ecosystem. With support for BTC and related LSD and LRT protocol assets, Satoshi Protocol will be able to offer better capital efficiency options for BTC assets, expanding the application scenarios of the SAT stablecoin across various ecosystems.
The leading DEX in the Bitlayer ecosystem, Macaron, has also established a SAT-BTC liquidity pool, allowing users to trade SAT and BTC on Macaron and earn additional points, which can be redeemed for future token airdrops from Macaron. As more LSD and DeFi protocols are integrated, more use cases and collaborative ecosystems for SAT will be developed, creating a more solid infrastructure for BTCFi. Satoshi Protocol:
Full-Chain Stablecoin Protocol of the Bitcoin Ecosystem
Satoshi Protocol is a full-chain stablecoin protocol based on the Bitcoin ecosystem, using a CDP model to issue over-collateralized USD stablecoin SAT, aiming to become a universal stablecoin protocol within the Bitcoin ecosystem (including the mainnet and Layer 2). Compared to existing stablecoin lending projects, Satoshi Protocol allows users to mint stablecoins worth up to 90% of the collateral value, making it the best choice for capital efficiency in the current ecosystem.
SAT achieves its peg to the USD value through over-collateralization and redemption arbitrage mechanisms. When the SAT price is below $1, users can redeem the corresponding amount of BTC through the official interface at any time for arbitrage, thus reducing the circulation of SAT in the market; when the SAT price is below $1.1, users can borrow SAT from Satoshi Protocol and sell it for arbitrage.
In addition to the USD stablecoin SAT, Satoshi Protocol expects to issue its native token OSHI in Q3 of this year, with OSHI holders receiving 100% of the protocol's revenue. Previously, Satoshi Protocol has launched a points activity for the OSHI token airdrop and collaborated with Binance Web3 and Bybit Web3 to allow users to complete tasks to earn a certain amount of BEVM and OSHI airdrops.
SAT: Over-Collateralized Stablecoin with 110% Collateral Ratio as Liquidation Benchmark
The Satoshi protocol uses the collateral ratio (CR) to manage risk. If the value of the BTC collateral provided by the user falls below 110%, the position will be liquidated. In this case, the user's BTC will be sold to repay the outstanding SAT debt, while the liquidity of SAT comes from liquidity providers in the Stability Pool, as they can purchase the liquidated BTC collateral at a discount while providing liquidity, thus increasing the incentive for users to participate in the protocol's liquidity.
Satoshi has now expanded to Bitlayer and supports BTC and stBTC as collateral, with plans to gradually add other BTC-related assets. The support for Lorenzo's stBTC is also aimed at accommodating the current stBTC users in the Bitlayer ecosystem. Thanks to the protocol's maximum borrowing capacity of up to 90%, it will further unlock capital efficiency within the ecosystem, allowing for better application and circulation scenarios for stBTC in the Bitlayer ecosystem.
How to Stake stBTC on Bitlayer to Mint Stablecoin SAT
Satoshi Protocol supports BTC and stBTC as collateral on Bitlayer. The text uses stBTC as an example to explain how to mint the stablecoin SAT through Satoshi Protocol and complete interactions with Babylon, Lorenzo, Orbiter, Satoshi Protocol, and Macaron in the process.
Lorenzo Staking BTC to Obtain stBTC
Step 1: Withdraw BTC to the Taproot address on the OKX wallet Bitcoin mainnet (starting with bc1p)
Step 2: Visit the Lorenzo Protocol official website and connect your EVM and BTC wallets
Step 3: Receive an equivalent amount of stBTC on the Lorenzo mainnet
1. Click "Start Staking," select Babylon, and click "Stake Now"
2. Enter the amount of BTC to stake
3. Click "Continue" to confirm transaction details and click "Sign"
Step 4: Cross-chain stBTC to Bitlayer
- Click "Bridge stBTC" on the Lorenzo official website and enter the amount of stBTC you want to cross-chain to Bitlayer
- Once the cross-chain is successful, you can use stBTC to interact with Satoshi Protocol on Bitlayer.
Using stBTC as Collateral to Borrow SAT on Satoshi Protocol
Step 1: Cross-chain a small amount of BTC to Bitlayer as gas fee (recommended to use Orbiter for cross-chain, as it has lower costs and potential airdrop expectations)
Step 2: Visit the Satoshi Protocol official website, connect your wallet, and switch to the Bitlayer network
Step 3: Find "Position" in the top navigation bar, select "stBTC," and click "Create Position"
Step 4: Enter the amount of stBTC to use as collateral and the amount of SAT to borrow (at least 100 SAT)
Step 5: Click "Create Position"
For detailed operational procedures, refer to the official video guide released by the project: How to Stake on Lorenzo and Deposit stBTC to Satoshi Protocol
In the above process, users obtain stBTC through Lorenzo, completing basic interactions with the Babylon and Lorenzo protocols, and interact with Orbiter during the cross-chain BTC to Bitlayer process. In the subsequent borrowing and exchanging process, they complete interactions with Satoshi Protocol and Macaron. Since multiple projects in the above process are among the most promising unlaunched projects in the BTC ecosystem, users can maximize capital efficiency and seize potential airdrops from the Bitlayer mainnet and its various ecosystem projects.
Integrating the Bitlayer Ecosystem, Expanding SAT Use Cases
Within three days of launching on the Bitlayer mainnet, Satoshi Protocol has climbed to the 7th position in the Bitlayer official voting activity leaderboard, showcasing the attention Satoshi Protocol has received within the Bitlayer ecosystem. In the future, Satoshi Protocol will collaborate with more Bitlayer ecosystem projects to expand SAT use cases, providing users with more flexible collateral options and greater potential returns for SAT.
When Satoshi Protocol launched on Bitlayer, it had already completed the deployment of SAT-BTC and SAT-stBTC liquidity pools on its leading DEX application Macaron, providing practical application scenarios for Bitlayer users in the early stages. The SAT-stBTC liquidity pool will provide very direct interaction use cases for the currently stagnant stBTC on the platform.
Additionally, Macaron is currently holding a liquidity pool trading competition, where users can exchange or provide liquidity in Macaron's liquidity pool after borrowing SAT, gaining higher yield potential. This interaction can also earn additional points as rewards from Macaron.
Visit the Macaron official website for event details: https://www.macaron.xyz/#/pool?lang=en
Conclusion
After a series of events, the development of BTC Layer2 is gradually maturing, with various ecosystem protocols emerging. As a leading stablecoin lending project in the BTC ecosystem, Satoshi Protocol brings a user-friendly and BTC asset-based stablecoin application to Bitlayer, poised to become an important member of Bitlayer's DeFi infrastructure. This will provide Bitlayer users with opportunities to flexibly configure assets, improve capital efficiency, and participate in more DeFi activities, while driving innovation in the BTCFi space.
As more collaborations with Bitlayer ecosystem projects unfold, SAT will be endowed with more use cases. In addition to collaborations with Macaron and Lorenzo, Satoshi Protocol's exploration of the Babylon ecosystem also brings greater imaginative possibilities.
From creating stablecoins and improving ecosystem infrastructure to building more use cases, ultimately driving the development of the entire BTC ecosystem, Satoshi Protocol focuses on constructing a full-chain stablecoin based on BTC assets, which may spark more innovation for BTC Layer2 and the entire Bitcoin ecosystem.
