In a significant step for BTCFi, Satoshi Protocol has been deployed on the Bitlayer. This integration marks a milestone for this Bitcoin-backed stablecoin and opens up possibilities for the BTCFi ecosystem.
Bitlayer users now have access to a robust and decentralized stablecoin solution, SAT, enabling them to engage in a wide range of DeFi activities with enhanced stability and security. This integration expands the DeFi applications available on Bitlayer and bolsters the platform’s functionality, positioning it as a frontrunner in BTCFi.
What is Bitlayer
Bitlayer is a Bitcoin Layer 2 solution, built on the innovative BitVM paradigm. It aims to unlock Bitcoin’s full potential by introducing a powerful and scalable smart contract system, while maintaining the security and decentralization of the Bitcoin base layer.
Technological Prowess at the Core
Bitlayer’s technological brilliance lies in its unique architecture, comprising two key components:
- BitVM: This revolutionary technology serves as a decentralized virtual machine, enabling complex computations to be performed off-chain while leveraging Bitcoin’s robust security for verification. This innovative approach tackles scalability effectively, facilitating faster and cheaper transactions without compromising on security.
- OP-DLC Bridge: This ingenious bridge establishes a secure and trustless connection between Bitcoin’s first layer and Layer 2, ensuring seamless asset transfers and maintaining the highest levels of security.
A Vote of Confidence in Bitcoin’s Future
Bitlayer’s impressive technology has garnered significant traction in the investment community. In March 2024, the company secured $5 million in funding from a consortium of renowned venture capital firms, including Framework Ventures,ABCDE Capital, StarkWare, OKX Ventures, and Alliance DAO. This substantial backing underscores the confidence placed in Bitlayer’s potential to revolutionize the Bitcoin landscape.
Thriving Ecosystem Takes Shape
Bitlayer’s commitment to fostering a vibrant ecosystem is evident in its extensive network of partners. With over 80 collaborations established, the company is rapidly expanding its reach across various segments, including infrastructure, stablecoins, NFT, and so on. This robust ecosystem provides a solid foundation for Bitlayer’s future growth and adoption.
How can we collaborate
By leveraging their respective strengths, Bitlayer’s scalable infrastructure and Satoshi Protocol’s stablecoin expertise, the duo can unlock a plethora of opportunities, fostering innovation and propelling Bitcoin’s growth to new heights.
Enhanced DeFi Infrastructure
The integration of Satoshi Protocol’s SAT stablecoin into Bitlayer’s scalable infrastructure creates a powerful synergy that elevates the DeFi landscape. SAT’s inherent stability and Bitlayer’s unparalleled throughput pave the way for a seamless and cost-effective trading experience, eliminating friction and enhancing the overall DeFi user experience.
Satoshi Protocol’s stablecoin acts as a catalyst for Bitlayer’s ecosystem, attracting more users and projects to its platform. The influx of liquidity and activity further strengthens Bitlayer’s position as a leading DeFi hub, creating a virtuous cycle of mutual reinforcement.
Unleashing DeFi Potential: A World of Opportunities
For Bitlayer users, the introduction of Satoshi Protocol’s SAT stablecoin opens up a world of exciting possibilities. With SAT, users can now:
- Efficiently Borrow and Lend: Utilize their Bitcoin holdings as collateral to access liquidity through loans, without the need to sell their assets. This flexibility empowers users to pursue investment opportunities and manage their finances more effectively.
- Maximize DeFi Yields: Leverage SAT’s stability to earn attractive returns through various DeFi protocols, such as yield farming and liquidity pools. Users can now participate in the DeFi ecosystem without the risks associated with volatile assets.
- Seamless Cross-Chain Transactions: Move their SAT holdings across different blockchains, seamlessly integrating their DeFi activities with other ecosystems. This cross-chain compatibility expands the scope of DeFi opportunities and enhances the overall user experience.
A Vision for the Future: Bitcoin’s Ascent
The partnership between Satoshi Protocol and Bitlayer represents a transformative step towards a more robust, user-centric, and interoperable Bitcoin ecosystem. By combining their strengths, they are laying the foundation for:
- Widespread BTCFi: The enhanced infrastructure and expanded user opportunities will drive widespread adoption of BTCFi, bringing the benefits of decentralized finance to a broader audience.
- Innovation Unleashed: The collaborative environment fostered by the partnership will encourage innovation, leading to the groundbreaking development BTCFi.
- Bitcoin’s Next Frontier: The partnership’s impact will pave the way for new applications and use cases that will further propel Bitcoin’s growth and establish its position as a cornerstone of the future financial landscape.
How to Use Satoshi Protocol on Bitlayer
First, you need to bridge BTC to Bitlayer, we’d suggest you can withdraw BTC to BSC, and bridge BTC from BSC to Bitlayer via Orbiter. Less gas fee and instant transfer.
With Satoshi Protocol, you can borrow SAT stablecoin by depositing your BTC as collateral, here’s the steps:
- Connect your wallet
- Change your network to “Bitlayer”
- Set Referrer ( Get 150+ points )
- Input BTC Amount.
- Borrow SAT ( min 100 SAT )
- Approve
- Click “Create Position”
Considerations for Using Satoshi Protocol on Bitlayer
Satoshi Protocol is a CDP (Collateralized Debt Position) protocol. This means that users collateralize their Bitcoin (BTC) holdings to borrow SAT stablecoins. It is crucial to understand the risks and responsibilities associated with using a CDP protocol.
Liquidation and Collateral Ratio (CR)
Satoshi Protocol uses a Collateral Ratio (CR) to manage risk. If the value of your collateralized BTC falls below a certain threshold (liquidation ratio, currently 110%), your position may be liquidated. In this case, your BTC will be sold to cover the outstanding SAT debt.
To avoid liquidation, it’s crucial to maintain a healthy CR. We recommend keeping your CR at least 150% (meaning your BTC collateral value is 1.5x your borrowed SAT). Regularly monitor market conditions and adjust your position as needed.
Supported Collateral
Currently, we support Bitcoin (BTC) and stBTC as collateral for borrowing SAT on Bitlayer.
Minimum Borrowing Amount
The minimum borrowing amount on BitLayer is 100 SAT.
Gas Compensation
A gas compensation fee of 10 SAT is applied to all transactions on Bitlayer. This fee covers the network costs associated with processing transactions. When borrowing SAT, the actual debt amount is slightly higher than the borrowed amount due to gas fees and interest accrual.
For example, if a user borrows 100 SAT, the actual debt amount will be approximately 110.5 SAT.
Conclusion
The deployment of Satoshi Protocol on Bitlayer marks a significant leap forward for BTCFi, unlocking a powerful combination: a robust and scalable Layer 2 solution (Bitlayer) and a user-friendly, Bitcoin-backed stablecoin (SAT).
This integration empowers Bitlayer users with a wider range of DeFi activities, fosters innovation in the BTCFi space, and positions Bitlayer as a frontrunner in this burgeoning ecosystem. With its thriving ecosystem and collaborations, we are well-positioned to capitalize on this momentum and drive the future of BTCFi.
About Bitlayer
Bitlayer is the first Bitcoin Layer 2 solution based on the BitVM paradigm. Bitlayer’s core objective is to address the trade-off between security (trustlessness) and Turing completeness in BTC layer 2 through cryptographic innovations and blockchain protocol engineering.
Bitlayer is committed to becoming the computation layer for Bitcoin, aiming to introduce ultra-scalability to Bitcoin while inheriting its security, providing users with a high-throughput, low-cost transaction experience.
Website | Twitter | Discord | Medium | Github | Whitepaper | Devs
About Satoshi Protocol
Satoshi Protocol is a universal stablecoin protocol built specifically for Bitcoin. It empowers users to deposit their Bitcoin as collateral to borrow stablecoins SAT, on either Bitcoin Layer 1 or Layer 2.
Website | Web APP | Twitter | Telegram | Discord | Docs | Blog
