Satoshi Protocol: Unleashing Bitcoin's Liquidity through CDP on BEVM with Airdrops and Innovations

What Makes BEVM Unique?

BEVM is an EVM-compatible Bitcoin Layer 2 solution that stands out in the crowded market. By leveraging Taproot consensus, Schnorr signatures, MAST, and Bitcoin SPV, BEVM achieves the highest level of decentralization and security among all BTC Layer 2 solutions.

Key features of BEVM:

• Native BTC Layer 2: BEVM utilizes BTC as the network gas and stores transaction data on the BTC mainnet, ensuring compatibility with the original Bitcoin protocol.
• EVM compatibility: Developers can seamlessly migrate their Ethereum-based dApps to BEVM, expanding the reach of these applications to the Bitcoin ecosystem.
• Decentralized and secure: BEVM employs Musig2 multi-signature aggregation and Bitcoin light nodes to achieve a trustless and secure environment.

Satoshi Protocol: Unleashing Bitcoin's Liquidity

Satoshi Protocol is the first Collateralized Debt Position (CDP) protocol built on BEVM, aiming at providing liquidity for BTC through the SAT dollar stablecoin, expanding the scenarios of BTCFi. This move unlocks trillion-dollar liquidity within the Bitcoin ecosystem, offering users a way to maintain Bitcoin holdings while gaining liquidity.

Satoshi Protocol Milestones

Let’s see what they have achieved:

• February 24th: Satoshi Protocol launched on BEVM testnet.
• March 18th: Testnet concluded with 100,000+ participants and 80,000+ NFT minted.
• March 24th: Smart contracts passed security audits by Scalebit and Supremacy.
• March 26th: Pre-seed funding secured from Web3Port Foundation, Waterdrip Capital and BEVM Foundation.
• March 28th: Launched on BEVM Mainnet.
• April 4th: 500k OSHI Airdrop with BEVM on Binance wallet.

How does Satoshi Protocol work?

The Satoshi Protocol utilizes a sophisticated system to maintain a stable peg of $1 for SAT. This system combines several mechanisms: over-collateralization, permissionless liquidation, stability pools, and arbitrage. Additionally, it features OSHI, a utility token granting holders 97.5% of the protocol's revenue.

OSHI distribution

The interplay between SAT and OSHI forms the heart of Satoshi Protocol. Here's the complete picture:

• Collateralized Borrowing: When borrowing SAT, users must maintain a minimum collateral ratio (MCR) of 110%. This means the borrowed amount cannot exceed 90.9% of the deposited BTC value.
• Liquidation: A liquidation is triggered if a user's collateral value dips below 110% (MCR) due to price fluctuations. The user's BTC collateral is sold at a discount to Stability Pool providers to repay the SAT loan. This mechanism protects the protocol and prevents borrowers from taking on excessive debt.
• Maintaining the Peg: A robust three-pronged system ensures SAT's value remains consistently pegged to the US dollar:
  X Redemption: Arbitrage activity helps regulate SAT's price and keep it within the desired range. If SAT dips below $1, arbitrageurs can buy discounted SAT and redeem them for $1 worth of BTC from the protocol. Conversely, if SAT exceeds $1.1, users can borrow SAT at the MCR (110%), sell them at a premium on decentralized exchanges (DEXs), and pocket the profit.
  X Over-collateralization: As mentioned earlier, over-collateralization (MCR of 110%) acts as a safety net. The protocol discourages borrowers from defaulting by requiring a higher collateral value and protects itself from price fluctuations.
  X Stability Pool: This pool serves as a final safety measure. If a user's collateral ratio falls below the MCR, the Stability Pool provides the necessary liquidity to execute a liquidation event and maintain protocol stability.

Satoshi Protocol x BEVM Airdrop with Binance wallet

BEVM and Satoshi Protocol recently joined forces with Binance Web3 Wallet to offer a total of 10.5M $BEVM and 500k $OSHI Token Airdrop.

By using Binance Wallet to complete tasks like bridge to BEVM, and create positions on Satoshi Protocol, you'll be eligible to share the rewards.

Bridging the Future: Satoshi Protocol and Binance Wallet's Airdrop Campaign

Satoshi Protocol represents a glimpse into the future of Bitcoin finance. By leveraging the BEVM and a robust CDP model, it allows users to borrow BTC-backed stablecoin SAT and expand the possibility for Bitcoin Ecosystem.