SatLayer

SatLayer describes itself as the economic layer for Bitcoin, aimed at making the asset programmable and usable as shared security for onchain applications. In its currently live phase, users deposit Bitcoin or liquid staking tokens (LSTs) into SatLayer vaults on Babylon Genesis to earn rewards. The protocol's stated purpose is to unlock new onchain primitives built on Bitcoin security, ranging from insurance to liquidity float.

The protocol is organized around Bitcoin Validated Services (BVSs) — external services and protocols that are validated and secured by restaked Bitcoin — together with a network of operators that support projects in launching, scaling and securing applications. A published roadmap describes three phases: Phase I (live) covering vault deposits by early adopters; Phase II (coming soon), in which operators and services join to leverage shared Bitcoin security and validate their services with restaked Bitcoin; and a further Phase III. Developer and operator onboarding is handled through application forms, alongside public documentation and a GitHub presence.

Business model

SatLayer operates as onchain infrastructure: Bitcoin and LST holders deposit into protocol vaults, and that restaked collateral is used to provide shared security to Bitcoin Validated Services. The company states that the projects it works with generate revenue daily on BVSs, which it presents as the source of the yield distributed to depositors.

Traction

SatLayer's website reports $200M in total value locked and lists an ecosystem of integrated chains and protocols including Babylon, Sui, Berachain, BNB Chain, Bitlayer, TAC, BOB, Avail, Bedrock, Bima, BirdLayer and CAP.

Latest developments

Phase I of the roadmap is live, with Bitcoin and LST deposits into SatLayer vaults on Babylon Genesis; Phase II, which opens the network to operators and services validating with restaked Bitcoin, and Phase III are announced as coming soon.