Satoshi Protocol has efficiently launched its BTC-backed common stablecoin, SAT, on the Bitlayer mainnet.

Satoshi Protocol’s integration with Bitlayer marks a major milestone in Bitcoin DeFi, enabling the usage of stBTC (wrapped Bitcoin) as collateral to mint SAT stablecoins. This deployment leverages Lorenzo’s stBTC, additional solidifying SAT’s position as a sturdy stablecoin inside the Bitcoin ecosystem. The transfer not solely enhances capital effectivity for Bitcoin holders but additionally paves the best way for SAT’s utilization throughout varied DeFi platforms, together with Macaron, Bitlayer’s main decentralized change (DEX).

Expanding Bitcoin DeFi through Bitlayer Integration and stBTC Support

Macaron, the main DEX on Bitlayer, already contains a SAT-BTC liquidity pool. This allows customers to commerce SAT and BTC instantly whereas incomes Macaron Factors for future token airdrops. Integrating with extra DeFi protocols and LSD options will unlock much more use circumstances and collaborative alternatives for SAT, solidifying the inspiration for Bitcoin DeFi(BTCFi).

Satoshi Protocol: A Universal Stablecoin Backed by Bitcoin

Constructed on the Bitcoin ecosystem, Satoshi Protocol is a common stablecoin that makes use of the CDP (Collateralized Debt Place) mannequin to difficulty SAT, a USD-pegged stablecoin with over-collateralization. Aiming to be the go-to stablecoin protocol for Bitcoin (each mainnet and Layer 2), Satoshi Protocol gives a superior capital effectivity choice in comparison with current options. Customers can leverage as little as 110% collateral ratio when minting SAT, maximizing the utility of their property.

The mix of over-collateralization and redemption arbitrage ensures SAT’s peg to the US greenback. If the value of SAT dips beneath $1, customers can exploit this arbitrage alternative by redeeming the corresponding quantity of BTC, successfully decreasing SAT circulation. Conversely, customers can borrow and promote SAT when the value falls beneath $1.1 to capitalize on worth discrepancies.

Satoshi Protocol plans to launch its native token, OSHI, in Q3 2024. OSHI holders will profit from 100% of the protocol’s income. Beforehand, Satoshi Protocol supplied airdrop factors for finishing duties, and collaborated with Binance Web3 and Bybit Web3 to distribute BEVM and OSHI tokens.

SAT: 110% Over-collateralized Stablecoin

Satoshi Protocol safeguards the worth of SAT by means of a system of over-collateralization. A collateral ratio (CR) of at the least 110% is required to stop liquidation. If a consumer’s collateralized BTC falls beneath this threshold, their place is mechanically liquidated. The consumer’s BTC is then bought to cowl the excellent SAT debt. Liquidity suppliers within the Stability Pool profit by buying this liquidated BTC at a reduction, contributing to the liquidity of the system. This incentivizes customers to take part and preserve a wholesome liquidity pool.

Satoshi Protocol’s current enlargement to Bitlayer opens doorways for even larger prospects. It now helps each BTC and stBTC as collateral, with plans to combine extra Bitcoin-related property sooner or later. This transfer welcomes current stBTC customers inside the Bitlayer ecosystem and permits them to leverage their holdings. Additionally, by capitalizing on Satoshi Protocol’s industry-leading 90% loan-to-value ratio, customers can unlock larger capital effectivity from their Bitcoin property, which is able to improve the usability of stBTC inside the Bitlayer ecosystem.

Minting Stablecoin SAT with stBTC on Bitlayer

Satoshi Protocol permits customers to mint SAT stablecoins utilizing BTC and stBTC as collateral on Bitlayer. This information gives a step-by-step walkthrough of the method, taking stBTC for example, highlighting the interactions concerned with Babylon, Lorenzo,Orbiter, Satoshi Protocol, and Macaron.

• Withdraw BTC from change to your Taproot tackle
• Stake BTC on Lorenzo
• Obtain stBTC on Lorenzo mainnet
• Bridge stBTC to Bitlayer
• Borrow SAT on Satoshi Protocol
• Deposit wstBTC and borrow SAT

Go to this video for a step-by-step information: How to Stake on Lorenzo and Deposit stBTC to Satoshi Protocol

Unlocking New Use Cases for SAT on Bitlayer

Satoshi Protocol’s swift ascent to seventh place on the Bitlayer voting leaderboard underscores the group’s enthusiasm. Because the protocol continues to forge partnerships inside the Bitlayer ecosystem, SAT’s utility and integration will increase, unlocking new alternatives for customers and driving innovation inside the Bitcoin DeFi sector.

Satoshi Protocol hit the bottom operating by deploying SAT-BTC and SAT-stBTC liquidity swimming pools on Macaron, Bitlayer’s main DEX. This transfer not solely supplied quick utility for Bitlayer customers, but additionally breathed new life into stBTC, a beforehand underutilized asset.

Macaron’s present liquidity pool buying and selling competitors gives much more methods to leverage SAT. Customers who borrow SAT can take part by swapping or offering liquidity inside Macaron’s swimming pools, doubtlessly incomes greater returns and securing bonus factors from Macaron itself.

Go to the Macaron official website to be taught extra in regards to the occasion.

About Satoshi Protocol

As a number one stablecoin lending mission inside the Bitcoin ecosystem, Satoshi Protocol brings a user-friendly, BTC-backed stablecoin utility to Bitlayer. This positions them as a important part of Bitlayer’s DeFi infrastructure. The mixing empowers Bitlayer customers to handle their property extra flexibly, optimize capital effectivity, take part in a wider array of DeFi actions, and in the end drive innovation inside Bitlayer’s burgeoning BTCFi sector.

As collaborations with extra Bitlayer initiatives unfold, SAT’s utility will proceed to increase. Satoshi Protocol’s exploration of the Babylon ecosystem, along with its current partnerships with Macaron and Lorenzo, opens doorways to thrilling new prospects and broader integration throughout the DeFi panorama.

Satoshi Protocol’s dedication goes past merely creating stablecoins and refining infrastructure. Their focus lies in constructing a sturdy ecosystem round common, BTC-backed stablecoins. This dedication to innovation has the potential to spark vital developments inside each BTC Layer2 and the broader Bitcoin panorama.