A quick look at SatLayer: Can it lead the BTC re-staking trend?
Author: 1912212.eth, Foresight News
Since EigenLayer started the trend of Ethereum re-staking, "re-staking" has gradually blossomed on Solana and even Bitcoin. The business of staking to earn interest is already mediocre, and it is more meaningful to activate more possibilities and protect its ecological security through re-staking.
As the largest economy in the blockchain ecosystem, Bitcoin's market value has exceeded one trillion US dollars, and the ecosystem surrounding its staking and re-staking is also developing rapidly.
Recently, Bitcoin re-staking platform SatLayer completed an $8 million Pre-Seed round of financing, led by Hack VC and Castle Island Ventures. Franklin Templeton, OKX Ventures, Mirana Ventures, Amber Group, Big Brain Holdings, CMS Holdings and others participated in the round. Angel investors from protocols such as aPriori, LayerZero, Manta Network, Magic Eden, Sui and Pendle also participated in this round of financing.
Why can SatLayer attract a lot of venture capital investment?
Bitcoin re-staking platform based on Babylon
The core architecture of Symbiotic, a re-pledge protocol supported by Paradigm, is on Ethereum. SatLayer is different. It is a Bitcoin re-pledge platform based on Babylon. SatLayer is a universal security layer that leverages the power of Bitcoin. By being deployed as a smart contract on Babylon, SatLayer enables Bitcoin pledgers to use their BTC as a verification service, thereby protecting various types of decentralized applications or protocols.
So which platforms or protocols will benefit from SatLayer?
The first is the various Liquidity Restaking Tokens (LST), which provide additional income opportunities for their staked BTC deposits. The second is the Bitcoin Verification Service (BSV) platform, which enhances BSV security and access to new features by restaking BTC into SatLayer. Finally, if SatLayer develops well, its infrastructure will also benefit and expand its functionality.
Architecture Design
SatLayer's ecosystem design is relatively simple, with several important participants:
● Re-stakeholder: re-stake BTC wrapped assets to SatLayer.
● Operators: Choose Bitcoin Validation Services (BSV) to provide security and receive re-staking rewards from it.
● BVS: A PoS network or application that uses BTC to power its cryptoeconomic security.
So where does the income of SatLayer mainly come from? One is the BTC staking income on Babylon, and the other is the additional staking income of SatLayer BVS. In addition, it also includes its composability, which can be used to use satAssets in other BTCFi to generate further income.
How users participate in the re-staking process
SatLayer makes the BTC re-staking process relatively simple. Users only need to open the official website and deposit wbtc and liquidity staking tokens (Lombard, PumpBTC, SolvBTC, FBTC, WBTC, yBTC, PStake). After completing the deposit, the user will receive the voucher token, which can then be deposited into the SatLayer application to start receiving rewards.
Currently, rewards are distributed to participating users in the form of points.
It is worth mentioning that when asked recently whether these points will be converted into SatLayer tokens in the future, Luke Xie, co-founder of SatLayer, said, "We don't have a formal token plan yet. When there are detailed information, we will announce it in the subsequent stage."
The official first season event has been launched on August 23 and will last for 2 weeks. The maximum deposit for a single event is 100 BTC. If a user withdraws before the end of the pledge period, the points count will be suspended, but the accumulated rewards before the withdrawal will be counted.
summary
Limited by the bleak market conditions, the narrative of the crypto industry and the enthusiasm of the sector are not as high as before. When the market liquidity becomes strong again, the craze around "Bitcoin", "re-staking" and the ecosystem may attract the market's attention again.
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