Satoshi Protocol integrates LayerZero to launch the first Omni-CDP, achieving full-chain liquidity management based on BTC

Author: Satoshi Protocol

The market capitalization of BTC is 2 trillion dollars, while the current Wrapped BTC solutions and BTC LST comprise over 20 protocols, accounting for only about 0.1% of the total BTC market cap, leaving 99.9% of liquidity yet to be fully released. At this stage, each BTC asset still lacks cross-chain liquidity, prompting the question of how to unleash the potential of BTC, a high-quality asset with good liquidity?

From this perspective, Satoshi Protocol has launched version V2, aimed at achieving full-chain liquidity management based on BTC. By integrating LayerZero technology, it realizes the Omni-CDP stablecoin across the entire chain. This update allows users to deposit BTC or BTC LST (e.g., solvBTC, LBTC) on any supported chain and mint satUSD on another chain, bringing BTC liquidity to more ecosystems and creating more yield and arbitrage opportunities.

Satoshi Protocol Links BTC Liquidity to Various Ecosystems

Satoshi Protocol aims to establish a financial network based on BTC, being the first to integrate LayerZero technology to create Omni-CDP, allowing users to collateralize assets on the Source chain and mint satUSD stablecoins on the Destination chain, achieving full-chain liquidity management based on BTC.

The satUSD stablecoin also supports a 1:1 exchange with USDT, using the OFT token standard, enabling all users to directly use LayerZero to circulate satUSD across various ecosystems without the need to integrate third-party cross-chain bridges, based on the native security of LayerZero.

Users can deposit BTC as collateral and mint the stablecoin satUSD with a collateralization ratio above 110%, with an LTV of up to 90%; for BTC LST (BTC liquid staking derivatives), the ratio is above 120%, providing a more efficient capital utilization method, and the minting of satUSD incurs 0% interest, meaning users can earn returns by converting satUSD to USDT in other DeFi protocols or even CEX.

• Achieve full-chain liquidity management based on BTC assets
• satUSD adopts the OFT token standard, securely circulating across multiple ecosystems
• BTC collateralization ratio of 110% with 0% interest will bring a more native and sustainable on-chain finance to the ecosystem
• Supports 1:1 exchange of USDT / USDC for satUSD stablecoin
• Future integration of multi-asset staking and yield generation scenarios

How to Integrate LayerZero?

LayerZero is a cross-chain interoperability protocol designed to enable efficient and lightweight cross-chain communication between different blockchains, allowing developers to build efficient, secure agreements that can link multiple ecosystems based on this technology.

Satoshi Protocol integrates LayerZero to achieve liquidity and information transfer between multiple ecosystems. Satoshi deploys OApp through LayerZero, managing cross-chain message transfer (Omnichain message) via the _lzSend and _lzReceive functions.

The OFT (OmniChain Fungible Token) used by satUSD is a token standard based on LayerZero, designed to ensure that fungible tokens can be seamlessly transferred between different blockchains without relying on traditional third-party bridges as a solution. Through this mechanism, Satoshi Protocol can manage collateral, debt status, and monitor whether positions are within a safe collateralization ratio in real-time, allowing for immediate liquidation processing during market changes. The integration of the OFT token standard enables true full-chain liquidity sharing, ensuring satUSD circulates across multiple ecosystems, maintaining the same market price and asset stability, further promoting the development and use cases of BTC stablecoins.

How to Mint satUSD

In addition to depositing BTC and BTC LST as collateral to mint satUSD, users can freely choose to deposit BTC, LST, and other assets as collateral on Chain A and mint satUSD on Chain B above a safe collateralization ratio. The process is as follows:

First, go to the Satoshi APP, select Mint, and connect your wallet.
Satoshi APP: https://app.satoshiprotocol.org/

• After connecting the wallet, select the chain where the assets will be locked in the upper right corner.
• Choose the BTC or BTC LST collateral to deposit.

• Enter the amount of collateral to deposit.
• Confirm the minting of satUSD, preset to mint on the same chain.
• The minimum collateralization ratio is 110% / LST is 120%, it is recommended to maintain above 200% to avoid liquidation.
• The collateralization of BTC LST has a fixed risk assessment process, so the collateralization ratios may vary.

• For the first minting of satUSD, the wallet needs to approve, click confirm.
• After successful minting, the wallet will receive satUSD.
• Switch to Position to view and manage the collateralization ratio and debt of the position.

Currently, the minting of satUSD incurs 0% interest, and it has already launched on 4 Bitcoin Layer2s, with plans to launch multiple Layer2s and EVM ecosystems in the coming weeks, actively integrating DEX, lending, BTC LST, and other protocols to expand the use cases of satUSD, and plans to announce airdrop eligibility to early users.

The First Protocol to Truly Achieve Full-Chain BTC Liquidity

Satoshi Protocol V2 has officially launched, integrating LayerZero + OFT to provide BTC holders with a new capital management approach, allowing them to flexibly participate in stablecoin trading, lending, and investment across multi-chain ecosystems.

The launch of Omni-CDP not only addresses the liquidity issue of Bitcoin but also makes satUSD the first truly full-chain circulating BTC stablecoin in the market.
With active deployment across various ecosystems and integration of more DeFi protocols to expand stablecoin scenarios, BTC, as the seventh-largest asset in the world with a market cap of 2 trillion dollars and good liquidity, has a massive liquidity potential yet to be released. As users move on-chain and market demand for stablecoins increases, Satoshi Protocol has taken a key step in this trend.