"About GOAT Network, an interesting BTCFI protocol" ----- Cracking the code: GOAT Network's sustainable BTC income solution

Bitcoin is digital gold, a powerful store of value, and a source of hope for countless people around the world who are watching fiat currencies fade into oblivion.

Furthermore, comparing Bitcoin’s price performance to the S&P 500, gold, or any other major asset or asset class over the past decade, Bitcoin wins by an unfathomable margin.

So when it comes to the most powerful, most valuable asset in the world, we have two questions:

How to get more Bitcoins?

How can I make the most of the Bitcoin I own?

As a long-term holder of BTC and an old player of DEFI, I am actually quite excited about the narrative of BTCFI this time. Perhaps you can say that the popularity of the restaking track brought by Eigenlayer is difficult to surpass, but what I care about is that this is an unfrozen market that is much larger than Ethereum, and the BTC in my hand finally has the opportunity to obtain maximum value-added benefits from the perspective of currency standard.

An important factor that attracted my attention to the GOAT protocol is that it proposes an economic model, which is a sustainable yield flywheel driven by BTC, paid in BTC, and maintained by BTC.

Unlike other LSTs, GOAT's entry point and narrative are quite unique.

The core of the GOAT network's technical innovation is to launch a decentralized sorter network that shares network ownership and revenue with external entities. Based on this revenue, the team creatively designed a BTC-based revenue token yBTC and built a multi-level decentralized financial market to form a BTC sustainable revenue flywheel.

What is a sorter? The sorter is a core component in the blockchain network that processes and optimizes transaction flows, especially in improving Layer 2 network performance and user experience. Simply put, the sorter aggregates multiple transactions and then submits them in batches to the Layer 1 blockchain (such as Bitcoin or Ethereum). The benefit is to increase transaction speed and reduce the cost of each transaction. At the same time, their work will also be rewarded with GAS.

Since the sequencer is important and profitable, how much is the profit and where does it go? Let me take Abitrum and OP as examples.

In December 2023, the sequencer on the Arbitrum chain earned $11.5 million, and the network's annual recurring revenue (ARR) was close to $100 million in the past year. OP earned a little less, reaching about $45 million. Now almost every Bitcoin Layer 2 network relies on a single sequencer, and the parent foundation controls all network operations and transaction batching, so all the related fees generated by users' operations on these L2s are taken away by the project party.

This is the power of GOAT. Are you jealous of this cake? I don't want to make this money. I will take out all the profits to let more people participate. This includes infrastructure companies, mining communities, and DeFi groups. Ultimately, through an open application process, any individual with technical equipment can run a sorter node of the GOAT Network (earn money!). The money given comes from all GAS (BTC) operated on GOAT and mining rewards of GOAT tokens (42%).

Let’s talk about the design of the BTC flywheel.

Since the token required to pay transaction fees on the GOAT Network is 1:1 wrapped BTC, the revenue earned by these sorter node operators will be paid in the form of BTC. These shared revenues can then be converted into yBTC by third parties, making them tradable and opening up new avenues for earnings.

Those who have played Pendle will be familiar with this because yBTC can be further decomposed into new, profitable tokens, creating a BTC income market similar to Pendle. Whether you want to aggressively gamble for income or hedge steadily, there is room for everyone to play, providing new opportunities for all kinds of users.

In addition, there will be various Defi dapps on Goat, whether it is lending, DEX, or Perp. The prosperity of the ecosystem will further increase the income of the sorter and feed back to the ecosystem.

Still sounds interesting, right?

To sum up: GOAT Network helped transform Bitcoin from a passive asset that mainly relies on price appreciation to an active asset, launching a BTC-based financial market full of BTCFi dApps. This narrative opened up the imagination space at once. Learn more about search, public consumption: Chain Prophet