Satoshi Protocol, a pioneering project building a “universal” stablecoin designed specifically for the Bitcoin ecosystem, successfully closed a $2 million seed funding round in May 2024. Led by CMS Holdings and RockTree Capital, the round signifies strong investor confidence in Satoshi Protocol’s vision of unlocking Bitcoin’s full potential.
This funding round also saw participation from prominent names, including Cypher Capital, Side Door Ventures, Optic Capital, Metalpha, Outliers Fund, Comma3 ventures, and angel investors like Paul Taylor (ex-BlackRock) and Yenwen Feng (founder of Perpetual Protocol).
A Universal Stablecoin for the Bitcoin Ecosystem
Satoshi Protocol offers a unique solution for Bitcoin holders seeking to participate in DeFi. Users can deposit their BTC or BTC LST as collateral to mint $SAT, a stablecoin pegged 1:1 to the US dollar and backed by over-collateralization.
This enables users to access trading, lending and staking and provides leveraged opportunities for yield-bearing assets, allowing them to amplify their potential earnings without the need to sell their BTC.
With Satoshi Protocol, you can deposit BTC, wBTC, or stBTC to mint $SAT. This innovative approach offers several advantages:
- Enhanced Utility for Bitcoin: $SAT unlocks a broader range of use cases for Bitcoin within DeFi protocols, enabling users to participate in lending, borrowing, and other financial activities without converting their BTC holdings.
- Preserve Bitcoin’s Core Values: By remaining anchored to Bitcoin, $SAT inherits the security and censorship resistance fundamental to Bitcoin’s design.
- Enhanced Liquidity: $SAT bridges Bitcoin and other DeFi ecosystems, promoting greater liquidity and facilitating seamless capital flow within the broader cryptocurrency space.
- Increase Capital Efficiency: Satoshi Protocol unlocks a wider range of investment opportunities and amplifies earning potential by allowing users to leverage their Bitcoin holdings through $SAT.
Key Developments and Strategic Collaborations
Satoshi Protocol has made significant strides in achieving its vision. Here are some key highlights:
Pioneering Utility on Bitcoin Mainnet
Satoshi Protocol is the first project to introduce a utility and stable asset powered by Runes on the Bitcoin mainnet. This paves the way for a robust and secure foundation for $SAT.
Extensive Network and Collaborations
Demonstrating its commitment to widespread adoption, Satoshi Protocol boasts seamless integrations with established players like BOB, BEVM, and Bitlayer on the mainnet, coupled with ongoing collaborations with Core Chain, Botanix, B^2, Alys ( incubated by MARA), and the Omni Network on the testnet. This collaborative approach strengthens the overall platform’s utility and reach.
Industry Recognition
Satoshi Protocol’s innovative approach has garnered significant industry recognition. It was the first Bitcoin layer 2 stablecoin protocol to collaborate with the Binance Web3 Wallet Campaign, reaching over 172,000 users. The recent partnership with Bybit Web3 Wallets further expands its user base and reach.
Growing Community
Satoshi Protocol has cultivated a strong and engaged community, boasting over 100,000 Twitter followers, 200,000 total users since March, 22,000+ active addresses, and a consistent daily active user (DAU) count of over 5,000 on the mainnet since April.
Novel Architecture for Versatility
The inclusion of the Omni Network within the Satoshi Protocol’s architecture enhances platform versatility and facilitates greater liquidity across various blockchains.
Alys testnet and Bitcoin2024 sponsorship
To expand the Bitcoin ecosystem, Satoshi Protocol is collaborating with Anduro (incubated by MARA) and gearing up for testnet deployment. Additionally, Satoshi Protocol is sponsoring the Bitcoin2024 conference. These strategic initiatives are poised to bolster brand visibility across the global Bitcoin community.
Strategic Roadmap: A Phased Approach to Universal Adoption
The $2 million seed funding will be instrumental in accelerating Satoshi Protocol’s development roadmap, which is divided into four distinct phases:
- Phase 1 (Completed – Q2 2024): The initial phase focused on establishing a solid foundation by completing risk management assessments and audits in June 2024.
- Phase 2 (Current Stage – Q3 2024): The current phase prioritizes attracting additional liquidity from multiple Layer 2 and Layer 1. This focus on liquidity aggregation will be crucial for establishing $SAT as a widely adopted and reliable stablecoin within the ecosystem.
- Phase 3 (Q3 2024): This phase will see the development of the Nexus Yield Module (NYM). This module will increase the utility of $SAT by allowing users to participate in yield-generating opportunities with USDT, USDC, and other stablecoins.
- Phase 4 (Q4 2024): The final phase will be dedicated to the seamless adoption of NYM across the Bitcoin mainnet and execution layers integrated with various L2. This widespread integration will solidify $SAT’s position as a universal stablecoin in the BTCFi space.
A World with Universal Stablecoins on Bitcoin
In its vision to expand the Bitcoin ecosystem and establish a universal stablecoin across Bitcoin’s mainnet and multiple Layer-2 solutions, the team is committed to leveraging Omni network technology to achieve universal interoperability for stablecoins.
Additionally, Satoshi Protocol is actively working to support BTC LST, enabling yield-bearing assets to be used as collateral. This initiative seeks to unlock liquidity and create yield opportunities for investors.
The recent completion of the seed funding round marks a milestone in their journey. With a comprehensive development roadmap, a rapidly growing community, and strategic partnerships, Satoshi Protocol is poised to reshape the evolving Bitcoin ecosystem.
Join the Satoshi Revolution
Satoshi Protocol is on a mission to develop a universal stablecoin for the Bitcoin ecosystem. By fostering collaboration and leveraging the combined strengths of Bitcoin and DeFi, Satoshi Protocol aims to empower users to realise their Bitcoin holdings’ potential fully.
About Satoshi Protocol
Satoshi Protocol is a revolutionary “universal” stablecoin protocol backed by Bitcoin. Users can deposit BTC or LST as collateral to mint the stablecoin $SAT on the Bitcoin mainnet and multiple L2s.
