Recently, Satoshi Protocol, a Bitcoin ecological stablecoin lending project, has completed the Bitlayer mainnet deployment and reached a strategic cooperation with the Bitcoin liquidity financial layer project Lorenzo, supporting stBTC as collateral to mint 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 the future development possibilities, and introducing its operation on Bitlayer and how to unlock the efficiency of fund use.
Expanding the Bitcoin ecosystem and supporting BTC-related collateral
The expansion to Bitlayer was part of the plan and is an important step in expanding the full-chain stablecoin of the Bitcoin ecosystem. The support for Lorenzo stBTC is also a step towards the BTC re-staking ecosystem where Babylon, which has been popular for financing recently, is located. With the support of BTC and related LSD and LRT protocol assets, Satoshi Protocol will be able to bring better capital utilization efficiency options for BTC assets and expand the application scenarios of SAT stablecoins to various ecosystems.
Macaron, the leading DEX in the Bitlayer ecosystem, already has a SAT-BTC liquidity pool, allowing users to trade SAT and BTC on Macaron and get additional points, which can be used to obtain Macaron's future token airdrops. With the integration of more LSD and DeFi protocols, more SAT usage scenarios and cooperative ecosystems will be expanded to build a more solid infrastructure for BTCFi. Satoshi Protocol:
The full-chain stablecoin protocol for the Bitcoin ecosystem
Satoshi Protocol is a full-chain stablecoin protocol based on the Bitcoin ecosystem. It uses the CDP model to issue over-collateralized USD stablecoin SAT, aiming to become a universal stablecoin protocol in the Bitcoin ecosystem (including the mainnet and Layer 2). Compared with existing stablecoin lending projects, Satoshi Protocol allows users to mint stablecoins with collateral value up to 90%, which is the best choice for capital utilization efficiency in the current ecosystem.
SAT is anchored to the US dollar value through over-collateralization and redemption arbitrage mechanisms. When the SAT price is lower than $1, users can redeem the corresponding amount of BTC arbitrage through the official interface at any time, thereby reducing the circulation of SAT in the market; when the SAT price is lower than $1.1, users can borrow SAT in Satoshi Protocol and sell it for arbitrage.
In addition to the USD stablecoin SAT, Satoshi Protocol is expected to issue the project's native token OSHI in Q3 this year, and OSHI holders will receive 100% of the protocol's revenue. Previously, Satoshi Protocol has launched a points activity for OSHI token airdrops, and has teamed up with Binance Web3 and Bybit Web3 to allow users to complete tasks to receive a certain amount of BEVM and OSHI airdrops.
SAT: Overcollateralized stablecoin, 110% collateral ratio as liquidation benchmark
The Satoshi protocol uses the collateral ratio (CR) to manage risk. If the value of the user's collateralized BTC assets is less than 110%, the position will be liquidated. In this case, the user's BTC will be sold to repay the outstanding SAT debt, and the liquidity of SAT comes from the liquidity providers of the Stability Pool, because they can get a discount to purchase the liquidated BTC collateral while providing liquidity, which increases the motivation for users to participate in the protocol liquidity.
Satoshi has now expanded to Bitlayer and supports BTC and stBTC as collateral, and will gradually add other BTC-related assets in the future. The support for Lorenzo stBTC is also to accept the current stBTC users in the Bitlayer ecosystem. Thanks to the maximum loan amount of up to 90% of the protocol itself, it will further unlock the efficiency of fund use within the ecosystem, and stBTC in the Bitlayer ecosystem will have better application and circulation scenarios.
How to stake stBTC on Bitlayer to mint stablecoin SAT
Satoshi Protocol supports two collaterals on Bitlayer: BTC and stBTC. This article uses stBTC as an example to introduce how to mint stablecoin SAT through Satoshi Protocol, and completes the interaction with Babylon, Lorenzo, Orbiter, Satoshi Protocol, and Macaron in the process.
Lorenzo pledges BTC to get stBTC
Step 1: Withdraw BTC to the Taproot address of OKX wallet Bitcoin mainnet (starting with bc1p)
Step 2: Visit the Lorenzo Protocol website and connect your EVM and BTC wallets
Step 3: Receive an equal amount of stBTC on the Lorenzo mainnet
1. Click "Start Staking", select Babylon and click "Stake Now"
2. Enter the amount of BTC to be staked
3. Click "Continue" to confirm the transaction details and click "Sign"
Step 4: Cross-chain stBTC to Bitlayer
1. Click "Bridge stBTC" on the Lorenzo website and enter the amount of stBTC you want to cross-chain to Bitlayer
2. The cross-chain is successful, and you can then use stBTC to interact with the Satoshi Protocol on Bitlayer.
Borrow SAT on Satoshi Protocol using stBTC as collateral
Step 1: Transfer a small amount of BTC to Bitlayer as gas fee (Orbiter is recommended for cross-chain, which has lower cost and expected airdrop)
Step 2: Visit the Satoshi Protocol official website, connect your wallet and switch to the Bitlayer network
Step 3: Find "Position" in the upper navigation bar, select "stBTC" and click "Create Position"
Step 4: Enter the amount of stBTC as collateral and the amount of SAT you want to borrow (at least 100 SAT)
Step 5: Click "Create Position"
For the specific operation process, please refer to the 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, complete basic interactions with Babylon and Lorenzo protocols, and complete interactions with Orbiter in the process of cross-chain BTC to Bitlayer. In the subsequent lending and exchange process, this completes the interaction with Satoshi Protocol and Macaron. Since many of the projects in the above process are the most promising unissued projects in the BTC ecosystem, users can kill two birds with one stone in this process, maximize capital efficiency, and win potential airdrops of the Bitlayer mainnet and its multiple ecological projects.
Integrate the Bitlayer ecosystem to expand SAT use cases
Within 3 days of launching on the Bitlayer mainnet, Satoshi Protocol has climbed to the 7th place in the Bitlayer official website voting activity rankings, which shows the attention Satoshi Protocol has received in the Bitlayer ecosystem. In the future, Satoshi Protocol will also cooperate with more Bitlayer ecosystem projects to expand SAT use cases, provide users with more flexible mortgage options and more SAT income possibilities.
When Satoshi Protocol was launched on Bitlayer, it had already deployed the SAT-BTC and SAT-stBTC liquidity pools on its head DEX application Macaron, which was the actual application scenario provided by the protocol for Bitlayer users in the early stage. The SAT-stBTC liquidity pool will provide a very direct interactive use case for stBTC currently in a sedimentation state on the platform.
In addition, Macaron is currently holding a liquidity pool trading competition. After lending SAT, users can exchange or provide liquidity in Macaron's liquidity pool to obtain higher profit potential. This interactive behavior can also receive additional points provided by Macaron as a reward.
Go to Macaron’s official website to view event details: https://www.macaron.xyz/#/pool?lang=en
Conclusion
After a series of events, the development of BTC Layer2 has gradually matured, and various ecological protocols have emerged. As the leading stablecoin lending project in the BTC ecosystem, Satoshi Protocol has brought a user-friendly and BTC-based stablecoin application to Bitlayer, which is expected to become an important member of Bitlayer DeFi infrastructure. This will provide Bitlayer users with an opportunity to flexibly configure assets, improve capital efficiency, and participate in more DeFi activities, while promoting Bitlayer's innovation in the BTCFi field.
As more Bitlayer ecosystem projects are launched, SAT will be given more use cases. In addition to the cooperation with Macaron and Lorenzo, Satoshi Protocol's exploration of the Babylon ecosystem also brings greater imagination space.
From creating stablecoins, improving ecological infrastructure, to building more use cases, and ultimately promoting the development of the entire BTC ecosystem, Satoshi Protocol focuses on building a full-chain stablecoin based on BTC assets, which may bring more sparks to BTC Layer2 and even the entire Bitcoin ecosystem.
