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#KAITO @KaitoAI Hey guys, it's another day woken up by the rise of Ethereum, and alt season is just around the corner. Today I want to introduce you to a new project: SatLayer - a new way to engage with DeFi in Bitcoin that ordinary people can understand! This is a big player making waves in the Bitcoin ecosystem! After reviewing their X profile ( @satlayer ) and other public information, I've compiled a simple and easy-to-understand investment research report, suitable for both newbies and experienced traders to check out!
#COOKIE # CryptoNews @cookiedotfun
1. What is SatLayer? Simply put, it is Bitcoin's "super power bank"!
SatLayer claims to be the economic layer of Bitcoin, which sounds quite impressive, but the core idea is simply this: to make Bitcoin programmable, capable of generating yield, and to protect the security of various decentralized applications. What does this mean? In the past, Bitcoin was just a "piggy bank"; you could only hold or trade BTC, at most speculating on coins. Now, SatLayer transforms Bitcoin into an asset that can "work" through something called "BVS (Bitcoin Validated Services)."
In simple terms, SatLayer is like an "add-on" for Bitcoin:
Can make money: You can use BTC to "restake" to earn returns, for example, by getting LBTC (a type of liquid staking token) through their partners (Lombard, Solv, Bedrock, etc.), which allows you to earn returns without affecting your DeFi activities.
Ultra Secure: SatLayer leverages the powerful security of Bitcoin to safeguard various decentralized applications (dApps), such as preventing double spending and cheating.
Super flexible: It collaborates with Babylon (a Bitcoin staking protocol) and is based on the CosmWasm smart contract platform, allowing developers to use the security of Bitcoin to develop various new applications, covering Decentralized Finance, real-world assets (RWA), and even institutional-level needs.
In summary: SatLayer makes your BTC not just "look good in storage," but also "work and earn money," and it helps make the entire crypto world safer!
Second, why is SatLayer impressive? Let's take a look at their "circle of friends" and report card!
Technical Backbone: SatLayer, powered by Babylon, is built on the Bitcoin staking protocol Babylon. Babylon was created in 2022 by Stanford professors David Tse and Fisher Yu, specifically to allow BTC to stake on PoS (Proof of Stake) chains while ensuring no third-party risk (meaning no fear of running away). SatLayer builds directly on Babylon, creating a programmable staking system that allows BTC to support a wider variety of applications, such as DeFi, cross-chain protocols, and so on.
They mentioned on X that SatLayer is the designated staking partner of Babylon, and this relationship is not simple; it's equivalent to "official certification"!
Financial Strength: 8 million USD + Endorsement from Big Players
In August 2024, SatLayer secured an $8 million Pre-seed funding round with participation from big players like Franklin Templeton (a veteran investment institution on Wall Street). What does this indicate? Traditional finance is optimistic about their potential to significantly expand the Bitcoin ecosystem! Additionally, their team has backgrounds from MIT, Stanford, and Y Combinator, which speaks to their technical strength and network.
Ecosystem Partners: All are tough characters
SatLayer's partners are not just small players, including:
Lombard: Created an LBTC (liquid-staking BTC) that allows you to stake BTC while playing in DeFi.
Solv, Bedrock, Lorenzo: These are major players in the Bitcoin ecosystem for staking protocols, helping you turn BTC into "liquid money."
Sui Blockchain: SatLayer has partnered with Sui to launch a 3x rewards event for xBTC, attracting many people to participate.
These partners make the SatLayer ecosystem feel like a "super circle of friends," with no shortage of traffic, technology, or funds!
Community Booms: Yapper Plans and Developer Incentives
SatLayer is very active on X, running a Yapper Program (formerly known as the Ambassador Program) that encourages everyone to post, create content, and discuss various ways to use SatLayer on X to earn points (Yaps) and rewards. They also select a "Top Yapper" every week to give out merchandise, creating a pretty lively community atmosphere!
In addition, they offered a developer bonus of $50,000 at the Babylon Hacker House event to attract programmers to develop dApps based on SatLayer. This shows that they not only want to play by themselves but also want to bring more people to build the ecosystem together!
3. How to play SatLayer? Ordinary people can also get started!
If you want to participate in SatLayer, the threshold is actually not high, and ordinary players can easily join. Here are a few ways to play, based on their tutorials and information on X:
Staking BTC to earn returns
Go
For example, by converting BTC into LBTC through Lombard, and then "restaking" on SatLayer, you can earn staking rewards from Babylon as well as additional rewards from SatLayer.
Currently, they have an event with Sui where depositing xBTC can earn 3 times Sats² rewards, and the APY (Annual Percentage Yield) is quite flexible, depending on market conditions.
Join the community and earn rewards
Follow their X account ( @satlayer ), join Discord (
Participate in the Yapper program, post about SatLayer on X, discuss BTC staking, DeFi, etc., and you can earn points to exchange for rewards.
They also have a Sui collaboration event where holding 0.001 BTC in liquidity assets grants you an exclusive character, along with a chance to win in the lottery.
Developer Opportunity
If you are a programmer, you can apply for their Devnet access (
4. The Potential of SatLayer: The Next Opportunity for BTCFi?
Why do I say SatLayer has potential? Because it has seized the major trend of BTCFi (Bitcoin DeFi)! In the past, DeFi was basically dominated by ETH, but now the Bitcoin ecosystem is starting to make its move:
Market Size: Bitcoin is the largest asset in the crypto market, with a market value of over 1 trillion USD. SatLayer allows BTC to participate in DeFi, equivalent to opening up a super large fund pool.
Security advantages: The network security of Bitcoin is unmatched, and SatLayer uses BTC to protect dApps, making it inherently more reliable than other chains.
Institutional Involvement: The fact that institutions like Franklin Templeton have invested indicates that traditional finance's interest in BTCFi is growing.
They mentioned on X that May 2025 is the "key month" for BTCFi, with various new projects and integrations emerging one after another. SatLayer, as the designated partner of Babylon, along with strong supporters like Sui and Lombard, clearly aims to be the "big brother" in this wave.
5. Risk Warning: Take it easy before playing!
Although SatLayer looks appealing, there are no small matters in the crypto world, and risks still need to be mentioned:
Market Risk: BTC price is highly volatile, and the staking returns may be partially eaten away by market fluctuations.
Technical Risk: SatLayer's smart contracts are based on Babylon's CosmWasm, which is theoretically very secure, but new projects always carry the risk of bugs.
Regulatory risks: DeFi and staking projects may face policy regulation, especially involving cooperation with traditional financial institutions.
Liquidity Risk: Although there are liquidity tokens like LBTC, large-scale redemptions may experience delays or slippage.
I suggest everyone to start with a small amount, get familiar with the gameplay before increasing their positions, and avoid going all in!
6. Conclusion: Is SatLayer worth paying attention to?
SatLayer is definitely a potential stock in the BTCFi track for 2025! It transforms Bitcoin from a "piggy bank" into a "money-making machine" by staking, Decentralized Finance, and a developer ecosystem, opening up new ways to engage with BTC. Backed by big names like Babylon and Sui, with funding in place and an active community, it may offer some short-term gains, but in the long run, it could be a game-changer for the Bitcoin ecosystem.
My suggestion:
Newbie: First, go follow X (@satlayer), join the Discord to try out the Yap plan, grab some small rewards, and understand the gameplay.
Old driver: You can go
Developer: Hurry up and apply for Devnet access, the $50,000 funding isn't available every day!
In the crypto space for 8 years, I have seen too many projects come and go. SatLayer, which has technology, backing, and an ecosystem, is indeed worth paying special attention to! What do you think? Feel free to chat with me on X (by the way, you can also leave a message under @satlayer to earn some Yaps, haha)!
Disclaimer: The crypto world carries risks, and investments should be made cautiously! This article is simply an analysis based on public information and does not constitute investment advice. Do your own research and make rational judgments!