Satoshi Protocol

Satoshi Protocol is a decentralized finance (DeFi) protocol that enables users to mint a stablecoin, $SAT, by using Bitcoin (BTC) as collateral. It operates as the first Collateralized Debt Position (CDP) protocol on the BEVM ecosystem, a Layer 2 solution for Bitcoin. The protocol's primary function is to unlock liquidity from Bitcoin holdings without requiring users to sell their assets, thus addressing a significant need in the expanding Bitcoin finance (BTCFi) market.

Founded in 2024 by a founder known as Naka, the company is based in Austin, United States. In May 2024, Satoshi Protocol successfully closed a $2 million seed funding round. The round was co-led by CMS Holdings and RockTree Capital, with participation from other notable investors including Cypher Capital, Side Door Ventures, and angel investor Paul Taylor, formerly of BlackRock. This capital is intended to enhance security, expand integrations with other Layer 2 solutions, and grow its global presence.

The protocol's business model centers on the creation of its stablecoin, $SAT, which is pegged to the US dollar. Users deposit their BTC into the protocol and can borrow SAT against it, maintaining a minimum collateralization ratio of 110% to prevent liquidation. Revenue is generated from fees within the protocol, and holders of its utility token, OSHI, can earn a percentage of this revenue. The system employs several mechanisms to maintain the stablecoin's peg, including over-collateralization, a stability pool, and arbitrage opportunities. Satoshi Protocol has formed collaborations with various platforms in the Bitcoin ecosystem, such as BEVM, Bitlayer, Core Chain, and participated in a campaign with Binance Web3 Wallet that attracted over 172,000 users.

Keywords: stablecoin, Bitcoin finance, collateralized debt position, DeFi, BEVM ecosystem, liquidity protocol, SAT, blockchain, cryptocurrency, digital assets