With less than a month left before the BTC halving, the price of BTC has once again returned to above US$70,000. Although funds in the ETF market have fluctuated, it has recently turned to net inflows again. Various factors have once again focused the attention of the crypto market on silence. Bitcoin ecology for more than half a year. With the continuous implementation of various Layer 2 solutions today, it is bound to once again become the focus of mainstream vision inside and outside the market with new narratives and the influx of mainstream funds.
Currently, the number of protocols focusing on the Bitcoin Layer2 field has exceeded 20, and in the newly launched BEVM protocol in March, a new BTCFi narrative has emerged. Satoshi Protocol, as a US dollar stable currency project based on the BTC network, belongs to this list. At the same time, this project also lurks an opportunity, an opportunity to unlock the trillion-dollar liquidity market of BTC.
Satoshi Protocol has launched the mainnet together with BEVM. It is foreseeable that since the project is still in its early stages, there is a high probability that there will be many new actions after the mainnet is launched. Given that Bitocin Layer2 is a popular track in the next stage of the market, it has become a general consensus, and since BTC accounts for more than half of the market share, the ceiling is extremely high, so Satoshi Protocol, which is committed to BTCFi infrastructure and a new US dollar stable currency, deserves further attention.
At present, Satoshi Protocol has attracted a lot of attention in the industry. As the first CDP (Collateralized Debt Position) model protocol deployed on the popular network BEVM ecosystem, it is committed to creating a US dollar stable currency ecosystem based on BTC assets. The project has completed a seed round of financing, which was jointly led by Web3Port Foundation and Waterdrip Capital, and has multiple background endorsements and platforms.
Among them is the support from the BEVM official foundation. It is understood that the foundation participated in the early investment and support of Satoshi Protocol. The relationship between the two parties is relatively close. The launch of Satoshi Protocol on the mainnet this time is one of the first key projects of BEVM.
From the above, we can see that the resources and advantages possessed by Satoshi Protocol are not simple. This is also an important reason why the protocol has attracted the attention of many parties in the market.
Satoshi Protocol has achieved many results since its launch at the end of February. This article will introduce and review the project, as well as explain and explain its subsequent developments.
Due to the length of this article, Satoshi Protocol’s launch on the mainnet also announced a recommendation invitation event for users to participate. If you already know something about the project, please directly read the article directory to find the event introduction.
- Project hot information review
- About the features of Satoshi Protocol
- Bridge-Create Position
- Leaderboard - Referral Invitation Program
- Agreement follow-up planning
- Summarize
Project hot information review
First, let us review the various achievements that the Satoshi Protocol project has achieved since its launch one month ago.
From the end of February to now, Satoshi Protocol has been in the testnet stage for most of the time. Until the end of relevant processes and activities on March 18, the project has accumulated considerable attention and early users in the community.
Since Satoshi Protocol was officially announced on February 24, the project has completed the initial community construction and major test network activities, and the distribution of early user rights to the outside world has also been completed through derivative activities. Up to now, Satoshi Protocol's main official social media and communities have attracted a large amount of user attention. The X platform has more than 64K users following it, and the Discord and Telegram channels have a total of more than 76K users joining it.
In addition, since Satoshi Protocol launched the BEVM testnet, its genesis NFT has been minted by more than 80,000 addresses. The 25,000 OATs that were limited to activities during the testnet period were sold out in a short time. A total of 100,000 OATs were sold during the 2-week test period. User addresses participate.
In nearly a month, the Satoshi Protocol project has completed several noteworthy milestones.
- Completed launch on BEVM testnet
- Genesis Sparks NFT Open Minting
- 25k Limited Satoshi Pioneer OAT
- The first community AMA event
- The testnet has more than 100,000 users participating
- Passed Scalebit and Supremacy audits
- Online on BEVM mainnet
As of press time, Satoshi Protocol has only been officially released for more than a month. It has already gained considerable popularity in the market and completed a number of early actions.
About the features of Satoshi Protocol
Some people may be confused as to whether it is necessary to launch a new stablecoin protocol today when the stablecoin track is very mature. After all, there are many stablecoin projects in the current encryption market. But it is still a commonplace problem. The early blockchain network ecology represented by Bitcoin, Ethereum, etc. cannot meet the growing demand for encryption markets. Of course, this problem also occurs on other blockchain networks.
Therefore, in the past two years, the discussion and implementation of various network Layer 2 solutions has become one of the areas of greater concern in the industry. The BEVM that Satoshi Protocol is based on is the specific implementation ecosystem for Bitcoin L2. This is a completely decentralized L2 solution that introduces a mechanism compatible with the Ethereum Virtual Machine (EVM), using BTC as network gas and transaction data. It will be stored on the BTC main network, and the method of verifying transactions will be changed to BTC light nodes.
BEVM directly uses the public chain network that supports WASM. This method is faster and more efficient than the previous EVM virtual machine. The BTC light nodes can directly obtain corresponding data from the BTC network.
And the optimization focus of BEVM is to break through the constraints of BTC multi-signature. The new signature algorithm realizes transaction aggregation, reducing the amount of transaction data and transaction costs.
It is precisely based on the new features brought by BEVM that it is possible to build a complete stablecoin protocol based on the Bitcoin network. For a long time, behind BTC, a behemoth that has long occupied more than half of the market, there are trillions of dollars. liquid market. In the past, people generally regarded BTC as a heavy-asset investment category, but with the gradual implementation of its network upgrade plan, the schedule for the BTC network ecosystem to usher in more diverse application forms is getting closer and closer.
Under such circumstances, Satoshi Protocol, as the first batch of projects supported by BEVM, chose the USD stablecoin based on BTC as the main protocol content. Naturally, it attracted a lot of attention at the beginning of its launch. After all, the stablecoin project of the BTC ecosystem has no There is no doubt that this is what the crypto market desperately needs.
CDP mode
Satoshi Protocol introduced CDP (Collateralized Debt Position) to build a stable currency model, which represents a collateralized debt position and is a model that has been verified and recognized by the mainstream encryption market. After the user deposits BTC as collateral and borrows the stable currency SAT, and cooperates with the mechanism of SAT itself to achieve the price stability of the token, this method allows users to obtain liquidity while holding BTC.
Over-collateralization, liquidation and arbitrage
The basic model of the SAT token is that users can deposit BTC into the protocol for over-collateralization and lend out the stable currency SAT anchored at $1 for free use. The basic operation of the protocol is completed by over-collateralization, liquidation mechanism and arbitrage mechanism. This is the first CDP protocol launched by BEVM, aiming to unlock the huge liquidity of BTC itself. SAT can provide users with access to liquidity while holding BTC. The way.
Users must maintain a position mortgage rate of more than 110% when opening a position to avoid liquidation. Of course, the price of BTC will rise and fall according to market fluctuations. If the price of BTC falls, causing the value of collateral to decrease, and the user's loan mortgage rate is lower than 110%, the liquidation mechanism will be triggered, and the protocol will use the Stability Pool. SAT in SP ) purchases the liquidated collateral at a discount to repay the borrower's debt.
When the price of SAT is less than $1 USD, arbitrageurs can purchase SAT in the market, and through the redemption mechanism of Satoshi Protocol, users can use 1 SAT to redeem (Redeem) BTC assets equivalent to $1 USD at any time and sell them Arbitrage.
Stability Pool
The stability pool is the core of Satoshi Protocol to ensure the stability of the protocol and provide liquidity. On the one hand, after users deposit SAT into the stable pool, it will provide corresponding liquidity. On the other hand, when liquidation is triggered, the funds used to sell BTC at a discount to obtain SAT are also provided and completed by the stability pool.
Furthermore, users who provide SAT as liquidity in the stable pool can purchase the liquidated BTC collateral at a discount; the protocol will use the SAT exchanged for the liquidated collateral to repay debt, ensuring that the protocol is in an over-collateralized state at any time.
SAT and OSHI
After understanding the basic operating mechanism of Satoshi Protocol, if you want to further evaluate it, you need to have an in-depth understanding of how the economic model adopted by the protocol protects the benefits of the protocol itself and participating users.
When mentioning the role that SAT can play, it is also necessary to note the assistance brought by the characteristics of BEVM itself, that is, the compatibility with Ethereum EVM, which makes it possible for the opening of Satoshi Protocol or the deployment of other network ecosystems. , all have very strong scalability, which also makes the application scenarios that SAT can have not limited to the Bitcoin network.
As a U.S. dollar stablecoin, SAT targets the current mainstream ecological network of the entire encryption market in external application scenarios. Unlocking the BTC liquidity market is only the first step. At present, SAT is mostly used in the DeFi direction. The long-term goal is to use it as a general blockchain asset. It can be used as collateral, asset reserves and even become an important income strategy indicator in the BTC ecosystem. It can be used in various projects in the encryption market. Widely used.
During the operation of Satoshi Protocol, the use of SAT can naturally bring a variety of income to the protocol itself.
- Borrowing Fee
When users borrow SAT, they need to pay a one-time minting fee and a fixed annual interest rate fee of 4.5% of the borrowed amount, which will be included as one of the income of the agreement.
- Redemption Fee
Certain fees will also be incurred when users exchange SAT for BTC. This fee helps the protocol manage the supply of SAT and ensure benefits from these transactions, and the redemption fee is calculated the same as the minting fee.
- Flash Loan Fee
Satoshi Protocol also provides unsecured short-term loans and charges 0.09% of the loan amount to ensure transaction speed and increase the protocol's revenue.
- Liquidation Fee
When a liquidation occurs, the protocol charges a 0.5% fee on the collateral, which is split 50% between the protocol and the user who initiated the liquidation, to incentivize users to maintain healthy collateral levels.
Of course, Satoshi Protocol will expand the revenue scenario in the future, and will eventually use 2.5% of all revenue as maintenance fees, and the remaining 97.5% will be distributed to OSHI pledgers based on the distribution of native governance token OSHI holders.
OSHI is the governance token of Satoshi Protocol itself. However, compared with the so-called complex designs of governance rights and voting rights in past projects, OSHI is currently positioned only as the basis for the profit-sharing rights of Satoshi Protocol participating users.
This means that the benefits of holding OSHI are very intuitive. The agreement will allocate income according to the participating users’ holdings. However, it is worth noting that if you want to obtain the corresponding rights and interests, you must transfer OSHI Make a pledge.
The total supply of this token is 100 million, and its distribution and unlocking time are as follows:
- Investors account for 15%. There is an initial lock-up period of 6 months and will be unlocked linearly within 24 months;
- The advisory team accounts for 2%. There is an initial lock-up period of 12 months and will be unlocked linearly within 30 months;
- The project team accounts for 15%, with an initial lock-up period of 12 months, and will be unlocked linearly within 30 months;
- The reserve accounts for 21%, and the linear unlocking period is 60 months;
- Ecological incentives account for 45%, and the linear unlocking period is 60 months;
- The public offering portion accounts for 2%.
Currently, Satoshi Protocol provides three different gameplay mechanisms for OSHI.
- Create Position (20%): Encourage users to lend SAT from the protocol. The length and quantity of lending SAT will affect various data participating in the OSHI mining pool, and thus affect the final mining output.
- Deposit SAT (10%): Depositing SAT into the Stability Pool (SP) can enhance the overall robustness of the protocol. In recognition of the role played by such users in maintaining stability, they will receive OSHI as a reward; of course deposit into SP The number of SAT will also affect various data of OSHI during the mining process.
- Utilize SAT (15%): Users who provide liquidity to liquidity pools, use SAT as collateral, or any activity that utilizes SAT to help expand their use cases will receive OSHI token rewards.
Regarding the application of OSHI within the protocol, what is currently known is that the token will be open to pre-mining gameplay in the future. At present, it seems that in the early stages of the project, OSHI’s focus is on the linear unlocking and release of the token. Of course, the openness of sOSHI is a prerequisite for achieving reasonable profit sharing among participating users.
Bridge-Create Position
Satoshi Protocol integrates various functions on the web page, and each operation needs to be accessed through a wallet address that supports EVM. At present, the protocol has been launched on the mainnet, and related operations such as Create Position can be performed.
Before using Satoshi Protocol, BTC assets need to be bridged from the Bitcoin network to the BEVM network.
It is recommended to first install the UniSat wallet and deposit the corresponding BTC, then go to the BEVM Bridge, then connect to the MetaMask wallet and enter the corresponding BTC amount.
After entering the BTC amount, click Transfer and finally complete the signature.
You need to wait for about 30 minutes for the final step. Once completed, Bridge completed will be achieved.
After completing the Bridge, if you need to open a position on Satoshi Protocol and mint SAT, you can directly access its APP, the link is https://app.satoshiprotocol.org/position.
After entering the page, please link your wallet. Satoshi Protocol basically supports multiple mainstream wallet applications.
After successfully logging in, please click the Create Position option to create a position.
After depositing BTC and lending SAT, please make sure the collateral ratio remains above 110% and borrow at least 18 SAT, which is the lowest collateral ratio.
The last step is to click "Confirm" and then confirm the transaction in your wallet. Once approved, click "Create Position" to complete the entire operation.
This article only explains and introduces the initial use of Satoshi Protocol APP. Completing Create Position is only the first step to participate in various ecological interactions. The liquidation and arbitrage mechanisms associated with the stability pool are inherent gameplay within the protocol. Please explore on your own. .
If you are still unclear about the text introduction, you can go to https://youtu.be/93XwLmqxP0Q?si=xNWhfaCC--MOXGW1 to directly view the more detailed operation guide. Being familiar with the operation of Create Position will be very helpful for participating in subsequent Satoshi Protocol related activities. The essential.
Leaderboard — Referral invitation program
Satoshi Protocol launched the “Recommendation Invitation Campaign” to reward early participants and community builders. The event will start with the mainnet launch on March 28, 2024, and is expected to last until the end of May 2024.
The final reward amount of this event has not been officially announced, but the overall form can basically be summarized as participating in protocol interaction and inviting others to create positions through invitation links. During the event, all participating users can create positions and recommend others to participate when creating positions. Both actions will accumulate points for the users themselves. In the end, the Satoshi Protocol project team will issue rewards based on the points ranking.
How to get points
- Users can earn points by creating a position and depositing BTC;
- Users use other people's invitation links to create positions, and both the inviter and the invitee can earn points.
How to participate
- Go to the Satoshi Protocol APP to create a position. The number of SATs loaned is the only factor that determines points;
- When creating a position, use someone else's invitation link to get an additional 150 points;
- After creating a position and lending SAT, the points of the address will be updated; they must be maintained until before the snapshot (if there is no SAT and the debt is 0 at the moment of the snapshot, there will be no points).
Reward distribution
- The official stated that the points obtained by participating in Leaderboard are equivalent to the airdrop weight of OSHI tokens in the future, but they are not equivalent;
- Users who have previously participated in the Satoshi Protocol testnet and Galxe activities and obtained NFTs and OATs will have points bonus privileges during the event settlement process.
Precautions
- Any user must create a position before becoming an inviter, otherwise the user's invitation link will be invalid.
- Once a user becomes an inviter, this means that if others use the user's invitation link to create a position, he will earn Referral Points based on the amount of SAT lent by the invitee.
- After Referral Points are accumulated, the corresponding points will not disappear no matter whether the invitee holds or closes a position subsequently.
Please visit https://medium.com/@satoshi-protocol/856fd26f26e2 for specific event rules. Essentially, the Leaderboard recommendation invitation event launched by Satoshi Protocol is for the early release of OSHI tokens, and the event rewards are related to the subsequent airdrop process. , so it deserves more attention.
Agreement follow-up planning
Now that Satoshi Protocol has officially launched on the mainnet, in addition to the participating gameplay and short-term activities of the protocol itself, many community users are also paying close attention to the project's planning in the subsequent stages. Since the project white paper has not yet released a detailed roadmap, here will be A brief introduction to the follow-up action signals that have been released by the project official.
Focus on BEVM ecosystem collaboration
As the first stablecoin protocol in the BEVM ecosystem, Satoshi Protocol is currently actively cooperating with various DEXs to enhance the liquidity of SAT, and is cooperating with lending protocols to support SAT as collateral or loanable assets. This is related to the process of cooperation between the agreement and various parties in the industry, and we need to wait for official announcement of accurate information.
Of course, you can also go to the BEVM official website to search for projects in other fields within the ecosystem. As an important part of this ecosystem, Satoshi Protocol will work on improving cooperation with other projects in the early stages of the project to expand the protocol itself. More possibilities and versatility.
BEVM official website: https://www.bevm.io/
The short-term plan is that Satoshi Protocol will cooperate with DEX and derivatives platforms to launch SAT-related usage scenarios.
Expand SAT usage scenarios
While Satoshi Protocol will initially focus on expanding usage scenarios in projects in the DeFi field, the long-term goal is to promote the integration of SAT into the entire BTC ecosystem.
In order to expand the usage scenarios of SAT in the BTC ecosystem, Satoshi Protocol will integrate various DEX, Lending, and Derivatives projects, increase the liquidity of SAT by promoting the establishment of ecological partnerships and serve as the basic trading currency unit of BTCFi, and ultimately achieve the expansion goal .
More detailed information about subsequent developments still needs to wait for the official announcement. This is just based on the information released by the official at this stage. In the end, please refer to the official announcement for details.
Summarize
Entering 2024, the entire crypto market has entered a stage of substantial recovery. As the market's top crypto asset, every move of the BTC ecosystem will have an impact on the overall market. The BTCFi track promoted by the implementation of Bitcoin Layer2 has now become a recognized popular areas,
Satoshi Protocol will serve as a stable currency protocol in BTCFi, unlocking the greater market potential of BTC. The liquid market value of BTC alone currently does not appear to be less than one trillion US dollars, so the ceiling of this track is very high.
BEVM Network is a pioneering force committed to expanding the BTC ecosystem in this wave, and Satoshi Protocol focuses on the infrastructure construction of the entire ecosystem. Therefore, the protocol has received investment from VCs focusing on the Bitcoin track, and as the official BEVM The object of key investment and support has been launched on the mainnet together with BEVM, which has a sense of imperial decree.
However, Satoshi Protocol has only been launched for a short period of time. It has achieved such relatively good results in the community, financing and protocol interaction itself. It is a project worthy of attention, especially since it is currently in the early stages. Participating in it has the potential to bring benefits, etc. Greater returns.
- Website: satoshiprotocol.org
- Twitter: @SatoshiBEVM
- Medium : @satoshi-protocol
- Doc: https://docs.satoshiprotocol.org/intro/introduction
- Telegram: https://t.me/satoshi_sat
- Discord: https://discord.gg/satoshiprotocol
