πŸ—ΊοΈOverview

Key Components

  • Mint satUSD against collateral by creating a β€˜Position’.

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

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

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

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

Main Operations of Satoshi Protocol

  1. Mint: Users deposit collateral to mint satUSD 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 annual interest fee. This allows users to access liquidity without selling their collateral, preserving their long exposure.

  2. Earn: Participants can contribute satUSD 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 satUSD 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 minting fees, interest 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 satUSD 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, satUSD can circulate across all supported chains to broaden its use cases. The Satoshi Protocol leverages Bitcoin Layer 2 as the execution layer for smart contract operations, while enabling satUSD to seamlessly circulate on the Bitcoin mainnet. For instance, satUSD can be used in various applications on the Bitcoin mainnet, such as RUNES marketplaces for pricing, lending platforms, DEXs and more. Moreover, satUSD's ability to circulate within the entire Bitcoin Layer 2 ecosystem enhances its flexibility and interoperability. Users can transition their satUSD seamlessly between different layers and applications, ensuring that satUSD remains a versatile and adaptable asset across various blockchain environments.

Last updated