What is SatLayer (SLAY)?

By CMC AI
09 December 2025 08:09AM (UTC+0)

TLDR

SatLayer (SLAY) is a Bitcoin restaking protocol designed to transform idle BTC into programmable collateral for decentralized services, enabling Bitcoin to secure applications like DeFi, AI infrastructure, and real-world assets.

  1. Bitcoin Restaking: Lets BTC holders earn yield by securing third-party services (BVS) while retaining custody.

  2. Ecosystem Token: SLAY governs the protocol, distributes rewards, and aligns incentives between stakers and developers.

  3. Modular Security: Uses Bitcoin’s $1T+ market cap to underpin a new layer of crypto-economic security.

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?

CMC AI can make mistakes. Not financial advice.