What is SatLayer (SLAY)?

Deep Dive

1. Purpose & Value Proposition

SatLayer addresses Bitcoin’s underutilization by enabling BTC holders to “restake” their coins (or liquid staking tokens like cBABY) to secure Bitcoin Validated Services (BVS). These BVS include decentralized insurance, cross-chain bridges, oracles, and AI compute networks. By doing so, Bitcoin transitions from a passive store of value to an active backbone for trust-minimized applications (SatLayer Docs).

2. Technology & Architecture

The protocol combines Babylon’s Bitcoin staking layer with a proof-of-stake sidechain to enable programmable slashing logic. Staked BTC is mirrored as liquid tokens (e.g., cBABY) on an Ethereum-compatible chain, allowing developers to build BVS with Ethereum-like flexibility while inheriting Bitcoin’s security (Bitcoinist).

3. Tokenomics & Governance

• Supply: 2.1B SLAY max, with 45% allocated to ecosystem incentives and 20% to early contributors.
• Utility: Governs protocol parameters, distributes treasury funds, and enables BTC stakers to participate in BVS (minimum SLAY staking required).
• Value Accrual: Protocol fees flow into a treasury controlled by SLAY holders (SatLayer Foundation).

Conclusion

SatLayer reimagines Bitcoin as a universal trust layer, leveraging its unmatched security to power a new wave of decentralized services. By bridging Bitcoin’s liquidity with Ethereum’s programmability, it unlocks novel yield opportunities while maintaining BTC’s core principles. Can Bitcoin’s conservative ethos coexist with the demands of a multi-chain, application-driven future?