Through SatLayer, Bitcoin staked in Babylon can be re-staken to provide Bitcoin-native security guarantees to other protocols and Dapps as a “Bitcoin Validation Service” (BVS).
Babylon is the hottest project in the BTC ecosystem. This is something like EgienLayer, which develops ecological projects such as EtherFi, Puffer, and Renzo.
SatLayer is a protocol centered on the Babylon ecosystem and is the official Restaking Cooperation Protocol designated by Babylon.
Through SatLayer, Bitcoin staked in Babylon can be re-staken to provide Bitcoin-native security guarantees to other protocols and Dapps as a “Bitcoin Validation Service” (BVS).
SatLayer currently supports a variety of mainstream Babylon's LST protocols, including Solv, Lombard, uniBTC, Lorenzo, pStake, pumpBTC, FBTC, etc., and the Ethereum network, BNB Smart Chain, BitLayer supported by these assets. We also support.
And now the staked BTC has multiple points. For example, when you stake SolvBTC.BNN on the Solv protocol, you can earn Solv protocol points, Sats (point rewards provided by SatLayer), and Babylon staking points. UniBTC depositors can not only earn Sats² through a single LST deposit, but also earn uniBTC Diamonds and Babylon rewards.
Staking address: https://tinyurl.com/ryxs-sl-dev
Babylon and SatLayer
Babylon is a Bitcoin staking protocol that cleverly uses Bitcoin's existing scripting language and UTXO model to implement the functionality of staking contracts. Users can achieve secure BTC staking without having to transfer Bitcoin from their address. Babylon uses on-chain staking scripts and the EOTS encryption mechanism to perform self-custodial Bitcoin staking and revenue generation. This mechanism allows native Bitcoin to be confiscated trustlessly if double signatures appear on the PoS chain.
However, Babylon only prevents validators from double signing. Due to limitations in Bitcoin's scripting language, slash functionality cannot be extended to address other forms of fraud. SatLayer is built on Babylon's “slashable safety” guarantee, allowing developers to define arbitrary slash conditions in smart contracts. These smart contracts are deployed to Babylon's CosmWasm smart contract chain through SatLayer, a Turing-complete execution layer. This approach allows for more extensive and flexible slash conditions for different types of fraud. With this, SatLayer significantly expands the range of security that Bitcoin can offer, maximizing its potential as a reward-generating asset.
SatLayer extends Babylon's functionality by providing the following benefits:
● Enhanced security: Through programmable slashes, SatLayer prevents a wide range of fraud and makes BVS more secure.
● Extended use case: The introduction of BVS is to use the security of Bitcoin to build Dapps for various protocols.
● Improved capital efficiency: Bitcoins held in Babylon can be restacked and used to secure other protocols, improving capital efficiency.
Bitcoin Verification Service (BVS)
Through SatLayer, BVS can specify in what circumstances operators will be fined and pay operators based on off-chain calculations. SatLayer enables various existing dApps and protocol categories to provide Bitcoin-backed protection. This approach allows such applications to easily take advantage of the cryptoeconomic security guarantees supported by Bitcoin, solving the cold start problem of relying on the protocol's own utility tokens for basic security. Masu.
This extension has a wide range of uses
● Lending protocols can use rehypothesized collateral as an insurance fund to manage bad liquidations.
● Data availability protocols ensure that the data a node claims to store actually exists.
● Sequencer can ensure liveness and censorship resistance.
● Native Bitcoin DEX can perform secure transaction settlement on the Bitcoin chain using rehypothesized collateral.
● Stablecoin backed by Bitcoin.
● Cross-chain bridges facilitate seamless interoperability between Bitcoin L2/sidechains and other L1 ecosystems.
In general, SatLayer extends Babylon's capabilities beyond the basic pledge protocol to become a more general security platform. And this expansion can be widely applied to various ecological uses of BTC and promote the flourishing and development of ecology.
Author: Sun Moon Xiaochu
This article reflects the opinions of PANews columnists and does not represent the position of PANews. PANews assumes no legal liability. Articles and opinions do not constitute investment advice.
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