πŸ—ΊοΈOverview

Key Components

  • Borrow SAT against collateral by opening a β€˜Position’.

  • Earn discounted collateral by providing SAT to the Stability Pool.

  • Staking OSHI to share the revenue generated by the protocol.

  • Redeem 1 SAT for 1 USD worth of collateral at any time.

  • CrossChain SAT across all supported chains and explore every protocol. For more detailed information, please refer to MultiChain.

Main Operations of Satoshi Protocol

  1. Borrow: Users deposit collateral to borrow SAT stablecoins, this is called creating a Position. The process requires maintaining a minimum collateral ratio, paying a minting fee applied to the loan based on current demand and a fixed 4.5% annual interest fee. This allows users to access liquidity without selling their collateral, preserving their long exposure.

  2. Earn: Participants can contribute SAT into the Stability Pool to earn rewards from liquidation events and simultaneously mine the OSHI token. The distribution of liquidated assets to contributors is proportional to their SAT holdings in the pool, offering a low-risk opportunity to accumulate more collateral.

  3. Staking: By staking OSHI tokens, users can share protocol's income, including borrowing fees, redemption fees, flash loan fees, and liquidation fees. The staking option features a variable lock-up period, allowing participants to tailor their investment strategies according to their preferences.

  4. Redeem: This feature allows users to exchange their SAT for an equivalent value in collateral at any time. This mechanism is essential for maintaining the stablecoin's peg to the US dollar, ensuring liquidity and stability within the system.

  5. CrossChain: Given that the Satoshi Protocol supports a multi-chain CDP (Collateralized Debt Position) framework, SAT can circulate across all supported chains. This functionality extends the utility of SAT beyond the BEVM ecosystem, broadening its use cases. The Satoshi Protocol leverages Bitcoin Layer 2 as the execution layer for smart contract operations, while enabling SAT to seamlessly circulate on the Bitcoin mainnet. For instance, SAT can be used in various applications on the Bitcoin mainnet, such as RUNES marketplaces for pricing, lending platforms, DEXs and more. Moreover, SAT's ability to circulate within the entire Bitcoin Layer 2 ecosystem enhances its flexibility and interoperability. Users can transition their SAT seamlessly between different layers and applications, ensuring that SAT remains a versatile and adaptable asset across various blockchain environments.

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