What is SatLayer?

SatLayer is building the economic layer for Bitcoin by transforming idle BTC into productive and programmable, reward-generating collateral for DeFi, RWA, stablecoins, and even TradFi.

SatLayer does this with the core innovation of restaking: fully programmable slashing. Unlike traditional staking implementations, where the slashed collateral is burned, SatLayer allows the slashed Bitcoin to be programmatically redistributed.

These programmatic rules can be tied to:

• On-chain conditions, such as smart contract output, bridging, and message passing, reward generation.
• Off-chain events, such as AI model outputs, real-world data feeds, and legal filings.

With on-chain and off-chain-based programmable slashing, SatLayer helps link Bitcoin with the rest of the crypto world (DeFi, RWA, stablecoins), as well as TradFi (insurance and reward for Bitcoin treasury companies).

Why SatLayer Matters

Unlike Ethereum, Bitcoin has historically lacked native economic utility (like staking, rewards, and composable services). SatLayer changes that by introducing BTC restaking, a mechanism that lets Bitcoin secure decentralized services (BVSs) and earn real rewards.

In the same way EigenLayer extends Ethereum’s staking model, SatLayer helps unlock Bitcoin’s $3T market. Bitcoin is a scarce asset by design, credibly neutral, and trusted by institutions, asset managers, and even nation-states. 

What better asset to secure the next generation of financial services?

Through SatLayer, protocols no longer need to launch their own tokens or build isolated security models. Instead, they can leverage Bitcoin’s economic weight via restaked BTC - securing bridges, oracles, sequencers, insurance vaults, and more. The result is a trust-minimized, token-optional model for decentralized infrastructure, secured by the hardest asset ever created.

SLAY Token (Coming Soon)

A governance or utility token will be introduced later to coordinate ecosystem incentives or BVS rewards. 

Cube by SatLayer

SatLayer also introduces Cube, a platform that extends restaking opportunities beyond BTC. With Cube:

• Users can stake BABY (Babylon Genesis’ native token);
• Receive cBABY, a liquid staked version of BABY;
• Then restake cBABY via SatLayer to earn stacked rewards on top of Babylon Genesis staking.

This creates a composable rewards layer where even Babylon Genesis-native tokens can participate in securing BVSs - amplifying economic alignment across the ecosystem.

Babylon Genesis Integration

As one of Genesis’s flagship restaking dApps, SatLayer allows users to delegate their restaked BTC on Babylon Genesis into Bitcoin Validated Services (BVSs).

How SatLayer Works

SatLayer makes Bitcoin productive by adding an economic layer on top of it through restaking.

What Is Restaking?

Restaking is the act of depositing BTC or BTC-based liquid staking tokens (LSTs) into validator-controlled vaults that provide economic security to decentralized applications known as Bitcoin Validated Services (BVSs).

When users restake, they delegate their BTC or LSTs to a chosen vault. That vault’s operator performs validation work for supported BVSs. In return, restakers earn rewards from BVS fees.

Core Architecture

SatLayer consists of four key roles:

1. Restakers: Users who deposit BTC or BTC-based liquid staking tokens (LSTs) into SatLayer. These assets are delegated to vaults, where they act as economic collateral and are subject to programmable slashing.
2. Operators: Vault controllers who select which BVSs to validate. They perform the necessary off-chain or on-chain work to support BVSs.
3. BVS Developers: Teams who deploy dApps that consume Bitcoin-backed security.
4. Slashers: Monitor validator behaviour and enforce slashing if misbehaviour or downtime occurs.

Restaking Lifecycle

Restaking involves the following lifecycle:

1. Deposit: Users deposit BTC or BTC LSTs into a SatLayer vault.
2. Delegation: Assets are delegated to an operator of choice. 
3. Validation: Operators use vault collateral to validate BVSs. For example, an operator validating an insurance BVS might monitor on-chain events or off-chain signals that trigger claim payouts.
4. Rewards: Restakers earn rewards from BVS activity (e.g., insurance premiums, bridge tolls).
5. Slashing: If the operator misbehaves (e.g., fails to perform duties, signs conflicting messages), the vault’s collateral may be partially or fully slashed, as defined by each BVS's slashing policy.

Smart Contract Logic

SatLayer is entirely on-chain and trust-minimized. Its smart contracts govern:

• Vault creation, delegation logic, and lifecycle management.
• BVS-specific slashing enforcement and slashing vault reconciliation.
• Reward routing and real-time restaker accounting.

Each BVS sets its own validation logic and slashing criteria, allowing SatLayer to support a wide range of services such as:

• Threshold signature networks.
• Ordering-agnostic DA layers.
• Insurance payout and claims systems.
• Oracle and relay networks.

All operations, including deposits, delegations, slashing, and rewards, are transparently recorded on-chain. This ensures accountability and full auditability across the SatLayer ecosystem.

How to Use SatLayer

SatLayer makes it simple to put your BTC to work.

Users can restake either BTC Liquid Staking Tokens (LSTs) or cBABY. When deposited into SatLayer, these assets are converted into satBTC or satcBABY, which are restaked tokens actively delegated to vault operators. These operators support BVSs, and, in return, users earn rewards.

The process for depositing cBABY and BTC LSTs is identical. 

This guide assumes you already hold the desired tokens.

Getting Started

1. Visit the app: https://app.satlayer.xyz/vaults/babylon.
2. Connect your wallet: Make sure you're using a supported wallet, such as Keplr.

3. Select a vault: Browse the available vaults and click on your chosen vault to begin the restaking process. Once restaked, you can monitor your position in the dashboard above.

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4. Enter the restake amount: Specify the amount of tokens you’d like to deposit.

5. Confirm transaction: Click Restake and sign the approval transaction in your wallet. Once confirmed, your tokens will be delegated to the vault and begin earning BVS rewards.

Monitoring Your Position

Track your restaking position directly through the SatLayer dashboard. You can:

• View vault-specific metrics (TVL, rewards rate, slashing risk)
• Monitor operator performance
• Check your current share and accrued rewards

Tips & Best Practices

• Review the operator's track record before depositing - each BVS has unique risk parameters.
• Only interact with verified vaults and double-check contract addresses.
• For higher capital efficiency, consider restaking cBABY to stack rewards on top of Babylon Bitcoin staking.
• Use the vault detail panel to explore:
  
  • Operator profiles and track record
  • Integrated BVSs and their functionality
  • Your share of the vault and active rewards

This helps you to make informed decisions and optimize your restaking strategy.

Useful Links

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• Blog
• Documentation
• Whitepaper

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