The Bitcoin ecosystem continues to evolve with innovative solutions like SatLayer—a restaking protocol that enhances Bitcoin's utility beyond passive holding. Here's everything you need to know about this groundbreaking project and its role in BTCFi (Bitcoin Finance).
Key Developments in Bitcoin Restaking
Recent movements in the crypto space hint at significant BTCFi advancements:
- Solv Protocol listings on major exchanges (Hyperliquid and Binance Megadrop) spotlight Bitcoin ecosystem projects
- SatLayer, Babylon's exclusive restaking partner, secured $8M funding and announced integration with Sui Network, bringing billions in Bitcoin liquidity to Sui's ecosystem
- Active Season 1 rewards program offering multi-project point opportunities for restakers
👉 Discover how to participate in SatLayer's restaking rewards
What is SatLayer?
SatLayer is a modular security layer for Bitcoin that functions similarly to Eigenlayer for Ethereum. As Babylon's official restaking partner, it enables:
✔️ Bitcoin Validation Services (BVS) - Extends BTC's security to other applications
✔️ Restaking of LSTs - Utilizes liquid staking tokens from Babylon
✔️ Custom slashing mechanisms - Via CosmWasm smart contracts on Babylon
Protocol Architecture
| Role | Function | Incentives |
|---|---|---|
| Stakers | Deposit Bitcoin LSTs | Earn base + restaking yields |
| Node Operators | Run BVS nodes | Receive operational rewards |
| BVS Applications | Rent security (e.g., bridges, oracles) | Access Bitcoin-backed protection |
"Think of SatLayer as Bitcoin's Eigenlayer—the same restaking logic applied to BTC instead of ETH." - Industry Analysts
Supported Networks and Assets
Currently operable across three chains:
- Ethereum (Highest gas fees, most asset options)
- BNB Smart Chain
- Bitlayer
Accepted LSTs: SolvBTC, Lombard LBTC, Lorenzo stBTC, pumpBTC, Bedrock, pStake + WBTC/BTCB/FBTC
Team and Funding
- Leadership: MIT/Stanford alumni including CEO Luke Xie (ex-VC with 30+ crypto investments)
- Taiwan Connection: Operations Manager Sherry Weng based in Taipei
- $8M Pre-Seed Round: Led by Hack VC and Castle Island Ventures, with participation from OKX Ventures, Amber Group, etc.
How to Earn Sats² Points
- Acquire LSTs (e.g., convert BTCB → SolvBTC → SolvBTC.BBN)
- Restake on SatLayer's platform
- Earn 21,000 Sats² daily per BTC + multiplier bonuses
👉 Step-by-step restaking guide for beginners
FAQs
Q: What distinguishes BVS from AVS?
A: BVS = Bitcoin Validation Services (BTC-secured), while AVS = Active Validation Services (ETH-secured).
Q: Why use SatLayer instead of direct Babylon staking?
A: SatLayer enables complex slashing conditions for diverse BVS applications beyond Babylon's basic capabilities.
Q: Is there a SatLayer token?
A: Not yet announced—current rewards are in Sats² points.
The BTCFi Opportunity
Bitcoin's $2T market capitalization dwarfs DeFi's TVL by 15x, making BTCFi one of crypto's most promising frontiers. SatLayer represents a crucial piece of infrastructure to unlock:
✅ Bitcoin yield generation
✅ Cross-chain security sharing
✅ Ecosystem liquidity expansion
As the space matures, expect more innovative BVS applications to emerge—from decentralized oracles to interoperable bridges—all secured by Bitcoin's unparalleled network strength.