❔FAQs
Explore our comprehensive list of frequently asked questions below to find the information you need.
General FAQs
What is Satoshi Protocol?
Satoshi Protocol is the 1st universal stablecoin protocol backed by Bitcoin, using BTC as collateral to mint the native stablecoin satUSD across Bitcoin Mainnet, Layer 2s, and the EVM ecosystem.
What is satUSD?
satUSD is a Bitcoin-backed, over-collateralized stablecoin pegged to $1 USD. Satoshi Protocol allows users to deposit collateral at a 110% collateralization ratio to mint satUSD or perform 1:1 exchanges with USDC/USDT.
What is CDP?
CDP, or Collateralized Debt Position, allows users to deposit BTC as collateral to borrow the stablecoin satUSD. It requires a minimum collateral ratio (MCR) of 110%, enabling users to hold BTC while accessing liquidity.
What makes satUSD different from other stablecoins?
satUSD is a universal stablecoin backed by Bitcoin. It offers greater transparency and user control compared to fiat-backed centralized stablecoins.
How can I mint satUSD?
You can mint satUSD by depositing BTC as collateral. This process requires maintaining a minimum collateral ratio (MCR) of 110% to ensure the stability of your position.
What is gas compensation?
Gas compensation refers to a small reserve of satUSD set aside to cover transaction fees associated with the liquidation of your position.
How does satUSD maintain its peg to the US dollar?
satUSD maintains its peg through over-collateralization, an instant liquidation module, and a peg mechanism.
If satUSD drops below $1, arbitragers can purchase discounted satUSD and redeem it for $1 worth of BTC from the protocol.
If satUSD exceeds $1.10, users can mint satUSD at 110% MCR and sell it immediately on the market.
Why is my position liquidated?
If your position’s collateral ratio fall below 110%, it will be allowed to trigger liquidation, which mean your collateral will be sold to stability pool providers for satUSD to repay your debt.
How can I avoid liquidations?
To avoid liquidations, maintain a healthy collateralization ratio, typically above 150%. You can add collateral to your position or repay part of your debt to improve the ratio and prevent liquidation.
How can I close position and claim my collateral?
You can close your position by repaying your satUSD debt in full. Once the debt is repaid, you can claim your collateral.
How does Recovery Mode work?
During Recovery Mode, actions are taken to improve the Total Collateral Ratio (TCR) to 150%:
Positions with a collateral ratio below 150% are liquidated.
Minting is restricted to maintaining a 150% Minimum Collateral Ratio (MCR).
To incentivize recovery, the minting fee is set to 0%.
Can I use satUSD across other chains?
Yes, satUSD is designed to operate on multiple chains, currently it works on BEVM, BOB, & Bitlayer. We are working on to add more chains.
Has Satoshi Protocol been audited?
Yes, Satoshi Protocol has undergone audits to ensure security and safety. The audits were conducted by Scalebit, Supremacy, and Billh.
For more details, you can view the audit reports
Stability Pool Related FAQs
What is Stability Pool?
The Stability Pool (SP) is a key part of the Satoshi Protocol that maintains system stability by providing liquidity for settling debts from liquidated positions. Users can deposit satUSD into the pool and benefit from discounted liquidated collateral.
Can I earn rewards from the Stability Pool?
Yes, users can deposit satUSD into the pool and benefit from discounted liquidated collateral.
How is the APR on the Stability Pool calculated?
The APR displayed on the protocol is calculated based on the average amount of collateral liquidated over the past 7 days, along with the current BTC price.
Why is my satUSD in the Stability Pool decreasing?
If you find your deposited satUSD decreasing, it means a liquidation has occurred. satUSD depositors gain liquidated collateral, such as wBTC, tBTC, etc., at a discounted price.
Why my BTC balance didn’t increase after claiming liquidation from the stability pool?
The reward you claim from the Stability Pool liquidation is wBTC, please add the wBTC contract address to your wallet. Keep in mind that the contract addresses for wBTC can differ based on the chain you are using, so make sure to verify and use the correct address for the specific chain you are operating on.
Swap Related FAQs
Can I swap satUSD to USDT/USDC?
Yes, you can swap satUSD for USDT/USDC at a 1:1 ratio. Please note that there is a 3-day lock-up period for withdrawals.
Why is there a 3-day lock-up period for satUSD to USDT swaps?
The 3-day lock-up period is implemented to ensure sufficient liquidity is available for transactions. This measure helps maintain the stability of the market and protects users' funds.
Redemption Related FAQs
What is Redemption?
Redemption allows users to exchange 1 satUSD for $1 USD worth of collateral. This feature ensures that satUSD maintains its value and provides users with a mechanism to utilize their satUSD effectively.
Can I exchange satUSD for BTC or other assets?
Yes, you can exchange satUSD for BTC or other assets. Simply go to the Satoshi Protocol app and navigate to the Redemption section.
How does Redemption work?
Redemption begins with liquidating positions having the lowest Collateralization Ratio (CR). To avoid your position being redeemed by others, it’s important to maintain a higher CR than the average.
How does the Redemption fee work?
The Redemption fee is a dynamic fee that ranges from 0.5% to 5%, calculated based on market volatility.
General FAQs
What is Satoshi Protocol?
Satoshi Protocol is the 1st universal stablecoin protocol backed by Bitcoin, using BTC as collateral to mint the native stablecoin satUSD across Bitcoin Mainnet, Layer 2s, and the EVM ecosystem.
What is satUSD?
satUSD is a Bitcoin-backed, over-collateralized stablecoin pegged to $1 USD. Satoshi Protocol allows users to deposit collateral at a 110% collateralization ratio to mint satUSD or perform 1:1 exchanges with USDC/USDT.
What is CDP?
CDP, or Collateralized Debt Position, allows users to deposit BTC as collateral to borrow the stablecoin satUSD. It requires a minimum collateral ratio (MCR) of 110%, enabling users to hold BTC while accessing liquidity.
What makes satUSD different from other stablecoins?
satUSD is a universal stablecoin backed by Bitcoin. It offers greater transparency and user control compared to fiat-backed centralized stablecoins.
How can I mint satUSD?
You can mint satUSD by depositing BTC as collateral. This process requires maintaining a minimum collateral ratio (MCR) of 110% to ensure the stability of your position.
What is gas compensation?
Gas compensation refers to a small reserve of satUSD set aside to cover transaction fees associated with the liquidation of your position.
How does satUSD maintain its peg to the US dollar?
satUSD maintains its peg through over-collateralization, an instant liquidation module, and a peg mechanism.
If satUSD drops below $1, arbitragers can purchase discounted satUSD and redeem it for $1 worth of BTC from the protocol.
If satUSD exceeds $1.10, users can mint satUSD at 110% MCR and sell it immediately on the market.
Why is my position liquidated?
If your position’s collateral ratio fall below 110%, it will be allowed to trigger liquidation, which mean your collateral will be sold to stability pool providers for satUSD to repay your debt.
How can I avoid liquidations?
To avoid liquidations, maintain a healthy collateralization ratio, typically above 150%. You can add collateral to your position or repay part of your debt to improve the ratio and prevent liquidation.
How can I close position and claim my collateral?
You can close your position by repaying your satUSD debt in full. Once the debt is repaid, you can claim your collateral.
How does Recovery Mode work?
During Recovery Mode, actions are taken to improve the Total Collateral Ratio (TCR) to 150%:
Positions with a collateral ratio below 150% are liquidated.
Minting is restricted to maintaining a 150% Minimum Collateral Ratio (MCR).
To incentivize recovery, the minting fee is set to 0%.
Can I use satUSD across other chains?
Yes, satUSD is designed to operate on multiple chains, currently it works on BEVM, BOB, & Bitlayer. We are working on to add more chains.
Has Satoshi Protocol been audited?
Yes, Satoshi Protocol has undergone audits to ensure security and safety. The audits were conducted by Scalebit, Supremacy, and Billh.
For more details, you can view the audit reports
Stability Pool Related FAQs
What is Stability Pool?
The Stability Pool (SP) is a key part of the Satoshi Protocol that maintains system stability by providing liquidity for settling debts from liquidated positions. Users can deposit satUSD into the pool and benefit from discounted liquidated collateral.
Can I earn rewards from the Stability Pool?
Yes, users can deposit satUSD into the pool and benefit from discounted liquidated collateral.
How is the APR on the Stability Pool calculated?
The APR displayed on the protocol is calculated based on the average amount of collateral liquidated over the past 7 days, along with the current BTC price.
Why is my satUSD in the Stability Pool decreasing?
If you find your deposited satUSD decreasing, it means a liquidation has occurred. satUSD depositors gain liquidated collateral, such as wBTC, tBTC, etc., at a discounted price.
Why my BTC balance didn’t increase after claiming liquidation from the stability pool?
The reward you claim from the Stability Pool liquidation is wBTC, please add the wBTC contract address to your wallet. Keep in mind that the contract addresses for wBTC can differ based on the chain you are using, so make sure to verify and use the correct address for the specific chain you are operating on.
Swap Related FAQs
Can I swap satUSD to USDT/USDC?
Yes, you can swap satUSD for USDT/USDC at a 1:1 ratio. Please note that there is a 3-day lock-up period for withdrawals.
Why is there a 3-day lock-up period for satUSD to USDT swaps?
The 3-day lock-up period is implemented to ensure sufficient liquidity is available for transactions. This measure helps maintain the stability of the market and protects users' funds.
Redemption Related FAQs
What is Redemption?
Redemption allows users to exchange 1 satUSD for $1 USD worth of collateral. This feature ensures that satUSD maintains its value and provides users with a mechanism to utilize their satUSD effectively.
Can I exchange satUSD for BTC or other assets?
Yes, you can exchange satUSD for BTC or other assets. Simply go to the Satoshi Protocol app and navigate to the Redemption section.
How does Redemption work?
Redemption begins with liquidating positions having the lowest Collateralization Ratio (CR). To avoid your position being redeemed by others, it’s important to maintain a higher CR than the average.
How does the Redemption fee work?
The Redemption fee is a dynamic fee that ranges from 0.5% to 5%, calculated based on market volatility.
For more FAQs and explanatory videos, please visit Discord FAQ channel.
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