After the frenzy of the Bitcoin whitepaper and the catalyst of SEC approval for BTC spot trading, an influx of users and market funds have poured into the Bitcoin ecosystem. Under the background of the market narrative and the demand for scaling solutions, the first stablecoin protocol based on the BEVM, Satoshi Protocol, officially debuted in early March.
The specific financing situation of the project has not yet been disclosed, but Satoshi Protocol has confirmed investment from the BEVM Foundation and support from several top VCs in the industry.
This article will focus on introducing the Satoshi Protocol stablecoin project in the BEVM ecosystem, including its mechanisms and participation methods, as well as the OATs and NFTs that offer future or potential airdrop rights.
Contents:
Toggle
Satoshi Protocol: A New Chapter in the BEVM Ecosystem
Satoshi Protocol’s Vision: Implementing a Financial Scenario Based on Digital Gold
SAT Stablecoin: Overcollateralization, Stability Pool, and Anchoring Mechanism
Lending Mechanism Based on BTC Overcollateralization
Stability Pool (SP) Ensuring Debt Liquidation
Exchange and Redemption Mechanism for SAT
How to Participate in the Galactic Mission
How to Obtain Genesis Spark NFT
Genesis Spark NFT: Reflecting the Value of Bitcoin as Digital Gold
Conclusion
Satoshi Protocol is the first CDP (Collateralized Debt Position) protocol in the BEVM ecosystem, aiming to provide liquidity for BTC and expand the applications of BTCFi through the SAT stablecoin pegged to the US dollar. Users can deposit BTC as collateral and borrow SAT, a stablecoin pegged to $1, which unlocks the potential trillion-dollar liquidity in the Bitcoin ecosystem, providing users with a way to gain liquidity while holding Bitcoin.
The project officials of BEVM have reposted multiple times, and after the news of a possible airdrop, the number of Twitter followers and Galactic Mission participants has skyrocketed. It is rumored that BEVM will launch its mainnet in mid-March, and Satoshi will be one of the first projects to go live on BEVM. It is worth participating early and staying focused.
Satoshi Nakamoto mentioned in the title of the Bitcoin whitepaper that his vision was to create a peer-to-peer payment network. Although Bitcoin has become a widely recognized digital gold asset, it still has limitations as an ideal form of currency. Therefore, Bitcoin-based stablecoins have become a market demand.
In this opportunity, a team of developers and teams from the Bitcoin and Ethereum ecosystems, who have previous experience in development, usage scenarios, and official support, chose to build the stablecoin project Satoshi Protocol on the BEVM, which has a high development experience, usage scenario, and official support.
SAT, as a decentralized stablecoin for BTCFi, is anchored to $1 through mechanisms such as overcollateralization, liquidation, and arbitrage.
Lending Mechanism Based on BTC Overcollateralization
Creators of positions must maintain a collateral ratio of 110% or higher to avoid liquidation. This means that borrowers of SAT must lock in BTC collateral worth more than 110% of their loan value.
If the BTC price falls and the collateral value decreases, causing the collateral ratio to fall below 110%, liquidation will be triggered. The SAT from the Stability Pool will be used to purchase the liquidated collateral at a discount, thereby paying off the borrower’s debt.
Stability Pool (SP) Ensuring Debt Liquidation
The Stability Pool is crucial for ensuring the stability and sufficient liquidity of the protocol. Liquidity providers deposit SAT into the Stability Pool. When the collateral ratio of any user’s position falls below 110%, the funds from the Stability Pool are used for liquidation, equivalent to repaying the debt of that position, and the liquidity provider receives the discounted BTC collateral.
Exchange and Redemption Mechanism for SAT
When the SAT price is below $1, arbitrageurs can buy SAT on the market and redeem (redeem) BTC assets equivalent to $1 for 1 SAT through the redemption mechanism of Satoshi Protocol, and then sell them directly to profit from arbitrage. This arbitrage strategy will come into play when SAT is below $1, as the demand for SAT increases, pushing the SAT price back to $1.
When the SAT price is above $1.1, arbitrageurs can deposit BTC on Satoshi Protocol to borrow SAT and immediately sell them on the market for profit. This mechanism creates selling pressure and pushes the SAT price below $1.1.
In addition to the testnet activities, the Galactic Mission has also been launched, allowing participants to receive a limited quantity of 25,000 Satoshi Pioneer OATs. The tasks in the testnet activities are quite complex and can be seen as thresholds set by the project to select participants with higher levels of engagement.
It is recommended to use the Metamask wallet to log in and enter the Satoshi Pioneer OAT activity page. The basic tasks include following @SatoshiBEVM and @BTCLayer2 on Twitter, retweeting testnet activity tweets, joining the Telegram and Discord communities, completing verification, and interacting with the Satoshi contract deployed on the BEVM testnet.
By using a wallet participating in the Galactic Mission, connecting to the Satoshi APP automatically switches to the BEVM testnet, and completing the operations of creating a position and depositing SAT, Galxe can be verified within 3 to 5 minutes.
According to the official website, as long as a position is created and SAT is deposited into the Stability Pool, each address is eligible to receive Genesis Spark NFT once, with no limit on the total quantity. The activity will end on March 18.
Genesis Spark is the first NFT officially launched by Satoshi. It is named Genesis and represents the concept of a gold nugget, conveying the message that although Bitcoin has existed as digital gold since 2009, it has been limited by scaling solutions, and the P2P payment network has yet to be implemented. However, after 15 years of technological development and diversification of scaling solutions, as Bitcoin approaches its fourth halving, the vision of Satoshi Nakamoto can truly be realized on Bitcoin. The spark has been ignited, and everyone in the ecosystem will become a spark that will ignite the traditional financial system, working together to promote the construction of the BTCFi ecosystem.
Satoshi Protocol, as the first stablecoin protocol in the BEVM ecosystem, has the opportunity to unlock the long-awaited liquidity of BTC. BEVM, as a second-layer scaling solution for Bitcoin, has also shown the market a more diverse and flexible development environment based on the Bitcoin network.
As long as you are in the cryptocurrency market, you are a member of the Bitcoin ecosystem.
This article is authorized to be reproduced from PANews.
Successful Conclusion of CoinEx Taiwan’s 7th Anniversary Celebration, Embracing the Arrival of the Web3 Era Hand in Hand with Users
Since its establishment in 2017, CoinEx has been a professional cryptocurrency trading pla…