SatLayer is building on Babylon to expand the possibilities of Bitcoin staking!
SatLayer extends the power of the Babylon Bitcoin staking protocol by enabling restaking, which allows staked Bitcoin to be used as collateral to secure more decentralized applications and protocols, also known as Bitcoin Validated Services (BVS), to further enhancing the security and utility of the Bitcoin network.
SatLayer is a restaking protocol built on Babylon Bitcoin Staking protocol that aims to enable programmable slashing of Bitcoin by registering slashing conditions within smart contracts that are deployed on SatLayer’s Babylon-secured platform. This means that developers can now specify arbitrary slashing conditions for various types of operator misbehavior, significantly broadening the scope of security that Bitcoin can offer.
How SatLayer extends Babylon's functionality
While Babylon provides robust protection against double-signing by validators, it cannot address other forms of misbehavior due to limitations in Bitcoin's scripting language. SatLayer overcomes this challenge by allowing developers to register complex slashing conditions in smart contracts deployed on top of Babylon's CosmWasm smart contract chain.
This approach enables a wide range of BVS (i.e., dApps and protocols) to leverage Bitcoin-backed crypto-economic security guarantees. Examples of BVS include:
Lending protocols using restaked collateral as insurance funds
Data availability protocols who ensure data integrity
Sequencers aiming to guarantee liveness and censorship resistance
Native Bitcoin DEXs for secure trade settlements
Bitcoin-backed stablecoins
Cross-chain bridges
SatLayer's Ecosystem Participants
The SatLayer ecosystem consists of four main participants:
Restakers: Stake Bitcoin collateral into SatLayer's smart contracts, or delegate to network Operators.
Operators: Validate a set of Bitcoin Validated Services (BVSes) in return for rewards.
Bitcoin Validated Services (BVSes): dApps and protocols using Bitcoin as collateral for security.
Slashers: Trigger slashing events when Operator’s misbehavior.
More about SatLayer
SatLayer empowers developers to leverage Bitcoin’s security in a generalizable and robust way by enabling programmable slashing through smart contracts on Babylon’s CosmWasm chain. This integration allows for secure and efficient operation of Bitcoin Validated Services, enhancing the overall security and robustness of the Bitcoin ecosystem. Their mission is to provide a simple and safe framework for developers to utilize BTC staked security.
The SatLayer founding team is comprised of serial entrepreneurs from MIT, Stanford, Y Combinator; and backed by notable leaders in crypto, including Hack VC, Castle Island Ventures, OKX Ventures, Mirana Ventures, and Franklin Templeton.
More about Babylon
Babylon is a project that designs Bitcoin security sharing protocols with a vision of building a Bitcoin-secured decentralized world. Its latest development is the world’s first trustless and self-custodial Bitcoin staking protocol, which enables Bitcoin holders to stake their BTC on Proof-of-Stake (PoS) systems such as PoS chains, L2s, Data Availability (DA) layers, etc, enabling them to earn yield without the need for third-party custody, bridge solutions, or wrapping services. Babylon's approach combines the high security and wide adoption of Bitcoin with the efficiency and scalability of PoS systems, increasing Bitcoin's utility. Babylon was founded in 2022 by Stanford Professor David Tse and Dr. Fisher Yu. Professor Tse is a member of the U.S. Academy of Engineering and is renowned as the inventor of the legendary proportional-fair scheduling algorithm for wireless communications. Babylon is led by a team of consensus protocol researchers and experienced layer 1 engineers from around the world.
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