Universal Stablecoin
Backed by Bitcoin

The protocol features SAT, a stablecoin pegged to the US dollar, and OSHI, a utility token rewarding ecosystem participants. Users generate liquidity by minting SAT with collateral, maintaining a minimum 110% ratio, and can redeem SAT through a structured mechanism to preserve its stable value.

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The Satoshi Protocol is a significant advancement in Bitcoin DeFi, enabling holders to access liquidity without unpredictable interest payments. It enhances Bitcoin's utility by promoting spendability and operates as a multichain protocol, allowing its stablecoin SAT to circulate across different blockchain ecosystems, including the Bitcoin mainnet, thus enhancing interoperability.

The protocol's core components are SAT, a stablecoin pegged to the US dollar, and OSHI, a utility token rewarding ecosystem participants. Users mint SAT by collateralizing Bitcoin and other assets, maintaining a minimum 110% collateral ratio.
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This process facilitates liquidity generation and enables SAT holders to redeem collateral through a structured mechanism, ensuring SAT's stable value.

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SAT is designed to unlock Bitcoin’s liquidity, fulfilling its dual roles as both digital gold and a functional payment mechanism. By doing so, the protocol not only reinforces Bitcoin’s position in the digital economy but also expands its usability and accessibility.

• Borrow SAT against collateral by opening a ‘Position’.
• Earn discounted collateral by providing SAT to the Stability Pool.
• Staking OSHI to share the revenue generated by the protocol.
• Redeem 1 SAT for 1 USD worth of collateral at any time.
• CrossChain SAT across all supported chains and explore every protocol.

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For more detailed information, please refer to MultiChain.
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SAT is designed to unlock Bitcoin’s liquidity, fulfilling its dual roles as both digital gold and a functional payment mechanism.

• Bitcoin Integration: SAT leverages Bitcoin as one of its collateral options, tapping into Bitcoin's vast market capitalization and reinforcing Bitcoin's role within the DeFi ecosystem.
• Decentralization: SAT provides a decentralized stablecoin alternative, reducing the dependency on centralized financial entities and mitigating associated risks.
• Broad Potential: Compared to alternatives like DAI and LUSD, SAT has a wider potential for adoption and utility, thanks to Bitcoin's larger market cap and established presence across Bitcoin L2 solutions and ERC-20 compatible platforms.

By doing so, the protocol not only reinforces Bitcoin’s position in the digital economy but also expands its usability and accessibility.

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The Stability Pool (SP) serves as a crucial mechanism within the Satoshi Protocol, designed to preserve the system's stability by providing liquidity for settling debts from liquidated Positions.
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When a Position undergoes liquidation, the SP uses SAT to clear the debt and, in return, acquires the collateral from the liquidated Position.
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Users can deposit BTC and other assets as collateral to mint the stablecoin SAT. To create a position, follow these steps:
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1. Visit the Position page at Satoshi Protocol Position Page.
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2. Click on "Create Position." Deposit BTC and borrow SAT, making sure the collateral ratio remains above 110% and that you borrow a minimum of 18 SAT.
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3. Click "Approve" and then confirm the transaction in your wallet. Once approved, click "Create Position."
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SAT maintains its peg to the USD through both "hard" and "soft" mechanisms:

• Hard Peg: The fundamental anchor comes from SAT's redeemability for collateral. This ensures that SAT always has a tangible price floor.
• Soft Peg: The soft peg mechanism for SAT's price stability is intricately linked to its Minimum Collateral Ratio (MCR) of 110%. This design ensures that when SAT's market value exceeds $1.10, participants are incentivized to deposit collateral, mint SAT with a collateral ratio set at 110%, and sell the minted SAT in the market. This arbitrage opportunity inherently stabilizes SAT's price by increasing its supply when its price climbs above the target, thereby aligning SAT's market price closely with the USD. By leveraging these market dynamics, the protocol effectively maintains SAT’s value within the desired range, ensuring its stability and reliability as a stablecoin.

Through these mechanisms, the Satoshi Protocol aims to maintain the SAT stablecoin's price stability, ensuring it remains a reliable and functional token.

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