After the frenzy of the Bitcoin ecological masterpiece and the catalyst of SEC’s approval of BTC spot, an influx of users and market capital has poured into the Bitcoin ecosystem. With the demand for scaling solutions, the foundation of the BTCFi ecosystem, and the background of market narratives, the first stablecoin protocol based on BEVM, Satoshi Protocol, made its debut in early March.
The specific financing situation of the project has not been disclosed, but Satoshi Protocol has confirmed investment from the BEVM Foundation and support from several top VCs in the industry.
This article will focus on introducing the BEVM ecological stablecoin project Satoshi Protocol, which has exploded due to the Galaxian mission and NFT activities. It will introduce the mechanisms and participation methods to obtain future or potential airdrop benefits of OATs and NFTs.
Satoshi Protocol: A New Chapter in the BEVM Ecosystem
Satoshi Protocol’s Vision: Implementing a Financial Scenario Based on Digital Gold
SAT Stablecoin: Overcollateralization, Stability Pool, and Anchoring Mechanism
Lending Mechanism Based on BTC Overcollateralization
The creator of the position must maintain a collateral ratio of 110% or higher to avoid liquidation. This means that borrowers of SAT must lock in BTC collateral worth more than 110% of their loan.
If the price of BTC falls, causing the value of the collateral to decrease and the collateral ratio to drop below 110%, liquidation is triggered. The collateralized assets are purchased at a discount from the Stability Pool (SP) using SAT to repay the borrower’s debt.
Stability Pool (SP) to Ensure Debt Liquidation
The Stability Pool (SP) is crucial for ensuring the stability and liquidity of the protocol. Liquidity providers deposit SAT into the Stability Pool. When the collateral ratio of any user’s position falls below 110%, the funds from the Stability Pool are used for liquidation, equivalent to repaying the debt of that position, and the provider receives discounted BTC collateral.
SAT Exchange and Redemption Mechanism
When the price of SAT is below $1, arbitrageurs can buy SAT on the market and redeem an equivalent value of $1 worth of BTC assets using the redemption mechanism of Satoshi Protocol. This arbitrage strategy comes into play when SAT is below $1, as the demand for SAT increases, pushing SAT back to the $1 price.
When the price of SAT is above $1.1, arbitrageurs can collateralize BTC on Satoshi Protocol to borrow SAT and immediately sell it on the market to profit. This mechanism creates selling pressure, pushing SAT below $1.1.
In addition to the testnet activities, the Galaxian mission has also been launched, where participants can receive a limited edition of 25,000 Satoshi Pioneer OATs. Currently, the tasks in the testnet activities are quite elaborate and complex, serving as a threshold set by the project to select addresses with higher participation levels.
It is recommended to use the Metamask wallet to log in and enter the Satoshi Pioneer OAT activity page. The basic tasks include following Twitter accounts, retweeting testnet activity tweets, joining the Telegram and Discord communities, completing verification, and interacting with the deployed Satoshi contract on the BEVM testnet.
By participating in the Galaxian mission with a wallet linked to Satoshi APP, the BEVM testnet is automatically switched, and the operations of creating positions and depositing SAT can be completed. After waiting for 3-5 minutes, Galxe will complete the verification.
According to the official website, by completing the position creation and depositing SAT into the Stability Pool, each address is eligible to receive one Genesis Spark NFT, with no total limit. The event ends on March 18.
Genesis Spark is the first NFT officially launched by Satoshi, named Genesis. The concept of a gold nugget was chosen to convey the message that although Bitcoin has existed as digital gold since 2009, it has been limited by scaling solutions, and the P2P payment network has never been realized.
However, with 15 years of technological development and diversified scaling solutions, as Bitcoin approaches its fourth halving, Satoshi Nakamoto’s vision can truly be realized on Bitcoin. The spark has been ignited, and everyone in the ecosystem will become a spark to propel the construction of BTCFi, challenging the traditional financial system.
Satoshi Protocol, as the first stablecoin protocol in the BEVM ecosystem, has the opportunity to unlock the liquidity that BTC has accumulated for a long time. BEVM, as a second-layer scaling solution for Bitcoin, also provides a more diverse and flexible development environment based on the Bitcoin network.
As long as you are in the cryptocurrency market, you are part of the Bitcoin ecosystem.
