Babylon is the hottest project in the BTC ecosystem. It is like EgienLayer, which has ecological projects such as EtherFi, Puffer, and Renzo.
SatLayer is a protocol around the Babylon ecosystem and is the official Restaking cooperation protocol designated by Babylon. @satlayer
Through SatLayer, Bitcoin staked in Babylon can be re-staked to provide Bitcoin-native security guarantees to other protocols or Dapps as a "Bitcoin Verification Service" (BVS).
SatLayer now supports a variety of mainstream Babylon's LST protocols, including Solv, Lombard, uniBTC, Lorenzo, pStake, pumpBTC, FBTC, etc., and supports the Ethereum network, BNB Smart Chain, BitLayer, etc. supported by these assets.
And now the staked BTC has the accumulation of multiple points. For example, by staking the Solv protocol's SolvBTC.BNN, you can earn points from the Solv protocol, Sats (which are the point rewards provided by SatLayer), and Babylon's staking points. Depositors of UniBTC can earn not only Sats² but also uniBTC diamonds and Babylon rewards through a single deposit of LST.
Staking address: https://tinyurl.com/ryxs-sl-dev
Babylon and SatLayer
Babylon is a Bitcoin staking protocol that cleverly utilizes Bitcoin's existing scripting language and UTXO model to implement collateral contract functionality. Users can securely stake BTC without having to transfer Bitcoin out of their addresses. Babylon conducts self-custodied Bitcoin staking and yield generation through on-chain staking scripts and EOTS encryption mechanisms, which can perform trustless confiscation of native Bitcoin when double signing occurs on PoS chains.
However, Babylon can only prevent validators from double signing. Due to limitations in Bitcoin's scripting language, it cannot extend confiscation functions to address other forms of misconduct. SatLayer builds on Babylon's 'confiscatable security' guarantees, allowing developers to define arbitrary confiscation conditions in smart contracts. These smart contracts are deployed through SatLayer's Babylon's CosmWasm smart contract chain, which is a Turing-complete execution layer. This approach allows for a broader and more flexible set of confiscation conditions for various misconduct. By doing so, SatLayer significantly expands the range of security that Bitcoin can offer, unlocking its full potential as a source of reward assets.
SatLayer expands the capabilities of Babylon by providing the following advantages:
● Enhanced security: Through programmable confiscation, SatLayer can prevent a broader range of misconduct, making BVS more secure.
● Use cases of the extension: The introduction of BVS enables the construction of various protocols Dapps utilizing the security of Bitcoin.
● Improved capital efficiency: By re-staking Bitcoin in Babylon, it can be used to secure other protocols, thus enhancing capital efficiency.
Bitcoin Verification Service (BVS)
Through SatLayer, BVS can specify the conditions under which operators will be confiscated and pay fees to operators based on off-chain calculations. SatLayer enables various existing dApp and protocol categories to be protected by Bitcoin collateral. This approach allows such applications to easily leverage the security guarantees of the crypto-economy supported by Bitcoin, addressing the cold start issue of relying on the utility tokens of the protocols themselves to obtain underlying security.
This extension has a wide range of applications.
● Lending protocols can use re-mortgaged collateral as insurance funds to manage bad liquidations.
● Data availability protocols can ensure that nodes actually possess the data they claim to store.
● The sorter can ensure activity and resistance to censorship.
● Native Bitcoin DEX can use re-mortgaged collateral for secure trading settlements on the Bitcoin chain.
● Bitcoin-supported stablecoins.
● Cross-chain bridges can facilitate seamless interoperability between Bitcoin L2/sidechains and other L1 ecosystems.
Overall, SatLayer extends the functionality of Babylon, making it more than just a basic staking protocol and turning it into a more versatile security platform. This extension can be widely applied to various ecological applications of BTC, promoting the prosperous development of the ecosystem.
