SatLayer Review: Can It Lead the BTC Re-Staking Trend?
Following the re-staking wave initiated by EigenLayer on Ethereum, the concept of re-staking has begun to take root on Solana and even Bitcoin. While the traditional staking model has become commonplace, re-staking introduces new possibilities, enhancing ecosystem security and offering additional benefits.
As the largest economic entity in the blockchain ecosystem, Bitcoin’s market value has surpassed $1 trillion. The development of staking and re-staking ecosystems around Bitcoin is accelerating rapidly.
Recently, Bitcoin re-staking platform SatLayer completed an $8 million pre-seed funding round, co-led by Hack VC and Castle Island Ventures. Other investors include Franklin Templeton, OKX Ventures, Mirana Ventures, Amber Group, Big Brain Holdings, and CMS Holdings, with angel investors from aPriori, LayerZero, Manta Network, Magic Eden, Sui, and Pendle also participating.
Why Did SatLayer Attract Significant Venture Capital Investment?
SatLayer: A Bitcoin Re-Staking Platform Built on Babylon
Unlike Symbiotic, a re-staking protocol on Ethereum backed by Paradigm, SatLayer is a Bitcoin re-staking platform based on Babylon. By leveraging Bitcoin’s security, SatLayer deploys smart contracts on Babylon, enabling Bitcoin stakers to use their BTC for validation services, thereby protecting various decentralized applications or protocols.
So, which platforms or protocols stand to benefit from SatLayer?
Primarily, liquidity re-staking tokens (LST) offer additional yield opportunities for staked BTC deposits. Bitcoin validation service (BSV) platforms also benefit by enhancing their security and accessing new features through re-staking BTC on SatLayer. Moreover, as SatLayer gains traction, its infrastructure could expand, offering even more functionality.
Architecture Design
SatLayer’s ecosystem is relatively straightforward, involving several key participants:
- Re-Stakers: Re-stake wrapped BTC assets onto SatLayer.
- Operators: Select Bitcoin validation services (BSV) to provide security and earn re-staking rewards.
- BVS: Use BTC to secure their PoS networks or applications within their cryptoeconomic security framework.
SatLayer’s revenue primarily comes from BTC staking rewards on Babylon and additional re-staking rewards from BVS. Furthermore, its composability allows satAssets to be used in other BTCFi applications for further yield generation.
How Users Can Participate in the Re-Staking Process
SatLayer simplifies the BTC re-staking process. Users need to visit the official website and deposit wrapped BTC (WBTC) and liquidity staking tokens (such as Lombard, PumpBTC, SolvBTC, FBTC, yBTC, PStake). After depositing, users receive a voucher token, which can then be staked in the SatLayer app to start earning rewards.
Currently, these rewards are distributed as points to participating users.
When asked if these points might convert to SatLayer tokens in the future, SatLayer co-founder Luke Xie responded, “We do not have an official token plan at this time. If we have more information, we will announce it in the later stages.”
The first season of activities began on August 23, running for two weeks. The deposit cap for each activity is set at 100 BTC. If a user withdraws before the end of the staking period, their point accumulation will pause, but rewards earned prior to withdrawal will still be counted.
Conclusion
Given the current bearish market conditions, the excitement and narrative around the crypto industry have diminished.
However, when market liquidity strengthens again, the focus on “Bitcoin,” “re-staking,” and the broader ecosystem could once more capture the market’s attention.