Positioned as BVS (Bitcoin Validated Services) middleware layer, Satlayer is the final piece of the Bitcoin ReStaking protocol Babylon ecosystem.
The West is incomplete without Rome, just as the ReStaking ecosystem is incomplete without AVS.
In terms of the Bitcoin Resaking ecosystem, Babylon abstracts the economic security of BTC using technical primitives such as EOTs (extractable one-time signatures) and Bitcoin timestamps, the Bitcoin ecosystem LST protocol is responsible for unlocking liquidity and composability of Wrap BTC staked to the Babylon mainnet, while Satlayer is responsible for providing economic security and liquidity in a one-stop manner (including programmable Slash conditions and BVS development SDK) for App Chain/dApp use.
From a technical perspective, SatLayer is a set of core smart contracts written in CosmWasm deployed on the Babylon mainnet, primarily consisting of two functional modules: Delegate Manager and custom Slash management.
This allows: 1. BTC/LST protocol Wrap BTC holders to delegate their assets through Satlayer to node operators (LST protocol project parties and professional PoS node operators) to stake on the mainnet operating nodes of App Chain/dApp using BVS services and earn staking rewards. 2. App Chain/dApp using BVS to flexibly customize Slash conditions. For example, App Chain/dApp can customize whether the assets from Slash go to protocol revenue or are sent to a black hole address for destruction, and can customize the Slash ratio to ensure its affordability and effectiveness.
Therefore, for ease of understanding, we can view SatLayer as the satellite layer of Babylon, responsible for connecting ReStakers, node operators, and BVS App Chain/dApp in the ReStaking ecosystem.
Interestingly, after watching the PR video made to celebrate the collaboration between Satlayer and Babylon, filled with deconstruction and challenges to the famous crypto planet comic released by Paradigm last year, I realized that Babylon/Satlayer all come from the Cosmos ecosystem.
In this cycle, the Bitcoin ecosystem with the strongest security and the largest scale of accumulated assets, in conjunction with COSMOS which has the strongest AppChain development SDK and the most open developer ecosystem, will launch the strongest challenge against the Ethereum ecosystem in the central kingdom of the crypto planet.
