Bitcoin has long stood as the cornerstone of decentralized finance—a digital gold with unmatched economic strength and global trust. Now, with the launch of SatLayer, a groundbreaking advancement is unlocking Bitcoin’s full potential beyond mere value storage. SatLayer introduces a new paradigm: transforming BTC into an active security resource for decentralized applications through Bitcoin Validated Services (BVSs) and restaking functionality.
This innovation marks a pivotal moment in blockchain evolution—enabling Bitcoin holders to earn yield while securing protocols across ecosystems, all without compromising on decentralization or trust assumptions.
👉 Discover how you can turn your idle Bitcoin into active security power today.
What Is SatLayer?
SatLayer is the universal security layer built to maximize the utility of Bitcoin. Deployed as a set of smart contracts on Babylon, SatLayer allows Bitcoin stakers to extend their security to any decentralized application or protocol registered as a Bitcoin Validated Service (BVS).
Unlike traditional staking layers that rely on native tokens, SatLayer leverages the unmatched economic weight of BTC—already the most secure and valuable asset in crypto—to provide robust, trust-minimized security for emerging blockchain services.
By enabling programmable slashing conditions, SatLayer ensures validators act honestly, creating a secure environment where misbehavior results in economic penalties. This opens the door for protocols to inherit Bitcoin-level security without requiring their own validator sets.
With full compatibility for wrapped and liquid staked Bitcoin (LST) tokens, SatLayer bridges the gap between passive holdings and active participation in network security.
Who Benefits from SatLayer?
The introduction of SatLayer creates ripple effects across multiple segments of the blockchain ecosystem. Here's who stands to gain:
Liquid Staking Token (LST) Platforms
LST platforms now have a new avenue to generate additional yield for users who deposit BTC. By integrating with SatLayer, these platforms can offer enhanced incentives, increasing user retention and capital efficiency.
BVS Platforms
Protocols operating as Bitcoin Validated Services gain access to unprecedented security backed by real BTC value. Restaking BTC into SatLayer strengthens their consensus mechanisms and enables novel use cases such as cross-chain validation, data availability layers, and secure oracles.
The Babylon Ecosystem
SatLayer significantly expands Babylon’s capabilities by enabling an EigenLayer-style restaking model tailored for Bitcoin. This means developers can build a wide range of Actively Validated Services (AVSs) secured by Bitcoin, pushing the boundaries of what’s possible with modular blockchain design.
BTC Stakers
For individual Bitcoin holders, SatLayer unlocks passive income opportunities without selling their assets. By locking BTC—either directly via wrapped forms or through LSTs—users earn dual rewards: underlying staking yields plus SatLayer Points, which may translate into future governance or token benefits.
👉 Start earning rewards by putting your Bitcoin to work in a secure, decentralized ecosystem.
How Does Restaking Work on SatLayer?
The restaking process is designed for simplicity and accessibility. Whether you're using wrapped BTC or a liquid staking derivative, here’s how you participate:
Deposit BTC
Begin by depositing one of the supported assets:- Wrapped Bitcoin (WBTC)
- Liquid Staked BTC tokens (e.g., Lombard, PumpBTC, SolvBTC, FBTC, yBTC, PStake)
These tokens represent your BTC value on Ethereum-compatible chains.
- Receive a Receipt Token
Upon deposit, you receive a receipt token that represents your stake in the system. This token proves ownership and tracks your participation. - Restake in SatLayer
Deposit your receipt token into the SatLayer app. This action signals your intent to secure BVSs and activates your eligibility for rewards. - Earn Dual Rewards
As you restake, you continue earning the base yield from your original LST or wrapped BTC product—and additionally accumulate SatLayer Points based on your contribution duration and amount.
This two-tiered reward system makes SatLayer one of the most compelling opportunities for BTC holders seeking yield without exit risk or complex infrastructure.
Season 1: Epoch 1 Overview
SatLayer’s first reward season—Season 1, Epoch 1—launched on August 23, 2024, and runs for two weeks. Participation is time-sensitive and capped at 100 BTC worth of deposits.
Once this cap is reached, no further deposits will be counted toward rewards for this epoch. Early adopters are strongly encouraged to join to maximize their point accumulation.
While details about Epoch 2 will be announced soon, ongoing seasons are expected to expand capacity and introduce new features based on community feedback and network growth.
Security First: Audits and Reliability
Security is non-negotiable when dealing with Bitcoin—a network valued in trillions. To ensure the highest standards, SatLayer has undergone rigorous audits by two industry-leading firms:
- Zellic – Known for deep technical expertise in smart contract security.
- Salus – A trusted name in blockchain audit services.
Both audit reports confirm that SatLayer’s deposit contracts are resilient against known attack vectors and operate with minimal trust assumptions.
You can review the full audit documentation independently:
These transparent security practices reinforce confidence in the platform’s integrity and long-term viability.
Frequently Asked Questions (FAQs)
Q: What happens if I withdraw my BTC early?
A: If you withdraw before the end of the staking period, your counter for accumulating SatLayer Points stops. However, all points earned up to that moment are preserved and accounted for.
Q: Which wallet networks are supported?
A: You can connect popular Ethereum-compatible wallets like MetaMask, Coinbase Wallet, Trust Wallet, or use WalletConnect to deposit your tokens.
Q: Are there any risks involved in restaking BTC?
A: While SatLayer minimizes trust assumptions, users should be aware that slashing conditions apply. Misbehavior by validators could result in partial loss of staked value. Always assess the risk profile of your chosen LST provider.
Q: Can I stake native BTC directly?
A: Not currently. SatLayer supports wrapped and liquid staked versions of BTC. Native BTC must first be bridged into compatible formats like WBTC or LSTs.
Q: How are SatLayer Points distributed?
A: Points are accrued linearly based on the amount staked and duration of participation. Longer engagement leads to higher point balances.
Final Thoughts
SatLayer represents a transformative leap in how we think about Bitcoin—not just as digital gold, but as active infrastructure for securing the next generation of decentralized systems.
By enabling restaking through BVSs on Babylon, it empowers BTC holders to contribute to protocol security while earning meaningful rewards. It aligns incentives across developers, validators, and users in a trust-minimized framework built on the strongest economic collateral in crypto.
As modular blockchains evolve and demand for shared security grows, solutions like SatLayer will play a central role in shaping a more interconnected, secure, and efficient web3 future.
👉 Join the movement—secure the ecosystem and unlock new yields from your Bitcoin today.