SatLayer

SatLayer is a shared security platform that leverages Bitcoin as primary collateral to secure decentralized applications and protocols. By deploying on Babylon, SatLayer enables Bitcoin restakers to provide security to applications known as Bitcoin Validated Services (BVSs). These services benefit from Bitcoin’s liquidity and security while maintaining Turing-complete programmability.

The protocol aims to transform Bitcoin from a passive store of value into an active collateral base for decentralized finance, governance, and real-world asset applications.

How SatLayer Works

• Bitcoin Restakers: Deposit wrapped Bitcoin or Bitcoin LSTs into SatLayer vaults and delegate them to operators, earning rewards for securing BVSs.

• Operators: Run validation nodes for BVSs and earn a share of rewards.

• BVS Developers: Launch applications secured by Bitcoin collateral through SatLayer’s shared security model.

• Programmable Slashing: Each BVS defines its own slashing conditions, penalizing malicious operators and strengthening security.

Key Features

• Vaults: User interface for deposits, shares, and withdrawals.

• Bitcoin Validated Services: Applications or protocols that integrate SatLayer for security.

• Rewards Engine: Distributes tokens to restakers and operators for securing BVSs.

• Programmable Slashing: Ensures accountability by enforcing penalties against dishonest operators.

SLAY is the ecosystem token of SatLayer, supporting governance, security, and incentives. Its functions include:

• Governance: SLAY holders propose and vote on incentive models, treasury allocations, and new ecosystem initiatives.

• Value Accrual: A portion of protocol fees is directed to the SatLayer Foundation Treasury, with token holders guiding its use.

• Staking: Users must stake SLAY alongside Bitcoin to secure BVSs, earning rewards in SLAY and potentially other tokens.

• Security: SLAY and BTC stakers face slashing if delegated operators act maliciously or fail to uphold security standards.