TIP-076: SATS: Bitcoin Standard for GameFi, bring Satoshi home

Proposal Types:

Snapshot proposals

Proposal Sponsors:

@sap

Overview

Introducing SATS, an ERC20 token 1:1 backed by the smallest unit of account of BTC: one satoshi. SATS are mintable, and redeemable, for tBTC.

Saakuru.network, a feeless L2 built on the OP Stack with a focus on GameFi, plans to integrate SATS in their platform to create unique use cases for BTC in GameFi.

Objectives

  • Launch SATS ERC20 token contract (backed by real satoshis, powered by Threshold Network).

  • Launch SATS minting DApp: Ffree/permissionless tBTC deposits to mint an equivalent number of SATS.

  • Release sats.js - a SDK for game developers to integrate SATS as their default in-game currency, marketplace asset, or liquidity pair with a seamless user experience on Saakurua.

SATS Token (Pseudo Contract)

pragma solidity ^0.8.24;

import { ERC20, ERC4626, FixedPointMathLib } from 'solmate/src/mixins/ERC4626.sol';

contract Satoshi is ERC4626 {

using FixedPointMathLib for uint256;

constructor(ERC20 _tBTC) ERC4626(_tBTC, "Satoshi", "SATS") {}

function totalAssets() public view override returns (uint256) {

return asset.balanceOf(address(this));

}

function convertToShares(

uint256 assets

) public view override returns (uint256) {

return assets * 1e8;

}

function convertToAssets(

uint256 shares

) public view override returns (uint256) {

return shares / 1e8;

}

function previewMint(uint256 shares) public view override returns (uint256) {

return shares / 1e8;

}

// How much tBTC is 1e18 SATS worth.1 SATS = 0.00000001 tBTC

function pricePerShare() public view returns (uint256) {

return convertToAssets(1e18);

}

}

SATS token contract will be deployed natively with COPY2 to get an identical and deterministic token address on the following chains where SATS.asset references native tBTC in each chain.

Peg and Native cross-chain transfer

SATS plans to be a Wormhole native transfer asset, and launch as a native interchain token. A UniswapV3 SATS/tBTC 1bp pool (with concentrated liquidity) will be deployed on each supported chain (Ethereum, Arbitrum, Optimism, Polygon, and Base), and liquidity deployed at the rate of (100M : 1 SATS.pricePerShare ). These pools are required to trade between tBTC (Wormhole native transfer asset) and SATS (local).

An example of Wormhole’s architecture for native token transfers with ETH and wstETH can be found here read more

Action plans

  • Smart Contract Deployment: Deploy SATS on 5 EVM chains where tBTC are natively deployed.
  • Technical assistance from Wormhole on native transfer capabilities.
  • Marketing: Generate web content, social media accounts to promote SATS as Bitcoin Standard for GameFi at domain sats.game, with support from Saakurua.network.
  • Github organization: Smart contract, webpage will be open-sourced and hosted at Satoshi DAO · GitHub

Support from Threshold DAO

The SATS token and Site launch will be independently funded.

The team requests $25,000 USD in liquidity support to be distributed over a three month period and support the SATS token launch on Saakurua.

About Saakuru Labs

SATS is a project built from the collaboration between Saakuru Labs.

Saakuru Labs is a Web3 enterprise software company and the operator of the Saakuru Blockchain, a consumer-focused, social, gas-less, layer-2 solution on Oasys. At Saakuru Labs, we provide critical pieces of Web3 infrastructure to ease access, increase security, and allow users and companies to generate income from the Web3 economy. Our innovative solution such as Saakuru Wallet SDK seamlessly integrates your products with popular blockchains, offering an effortless transition with as little as one day.

About Taffy Finance

TaffyDAO a GameFi specific decentralize exchange that is deploying on Saakuru.network.

1 Like

Hi, @juminoz,

Thanks for taking the time to prepare this proposal. I would like to advise that you take a minute to read this: TIP-034 Rules for New Proposals

As there are some steps that you missed which are required before the DAO can consider your proposal - chiefly, your proposal is missing a sponsor.

I would also encourage you to join our discord and engage with the community, and the Integrations Guild to discuss this proposal.

Discord.gg/threshold

2 Likes

telegram temp check with @Eastban, @mhluongo @maclane , this proposal was reviewed by @sap.

@sap has agreed to be Proposal Sponsor, @juminoz will edit this post as we receive feedback on scope and formatting.

2 Likes

I think this is quite interesting, but…

what is the benefit of creating a new SATs token? rather than just directly integrating tBTC into Saakuru.network?

if SATs will be backed by real Satoshis via Threshold, aren’t we just adding an extra layer of complexity and inefficiency?

2 Likes

Great question.

Small decimal number has poor UX, increase difficulty in communication and accounting. That is why Tesla, Amazon, Google does stock splits and BTC EFT factionalise smaller unit ($20-40/unit) to improve accessibility and perception.

There is no competition between 10000 SATS vs 0.00010000 BTC, SATS is better suited for micro transaction and encourages financial inclusion.

Owns 0.01 BTC vs Satoshi millionaire

75% of Bitcoin holder own less than 0.01 BTC, there is a massive long tail of users. Satoshi is a superior unit of account and medium of exchange for billions especially in developing economy.

Additional About Taffy Finance

TaffyDAO a GameFi specific decentralized exchange that is deploying on Saakuru.network. Taffy introduces innovative features such as a unique liquidity pool system and dynamic fee structures, ensuring efficient market operations and fair returns for liquidity providers. At the heart of Taffy’s mission is the commitment to fostering a strong community of users, offering full voting rights on key platform decisions including the hot/cold pool mechanism and fee distribution. With a user-centric approach and a robust governance model, Taffy is not just a platform but a community-driven ecosystem poised to set new standards in the DeFi space.

I completely agree that sats are a better unit for smaller transactions, but that’s easily solved by good UI. In the backend you’re moving 0.00010000 BTC, but in your UI you display that as 10000 SATS. Most good UIs will allow you switch between BTC/SAT.

I’m not sure I see the benefit of a new ERC20 at the moment. I’d like to hear other people’s thoughts

Great question, here are some key areas I can think of.

  1. Microtransaction / Precision: SATS enable transactions as small as fraction of a Satoshi, providing the granularity needed for microtransactions, a feature that complements the capabilities of the Lightning Network for handling fractional values (0.001 Mini-sats). This complements well in Saakuru network where L3 rollup enable gas-less transaction in GameFi apps.
  2. EVM Account Management: Utilizing the EVM’s built-in ledger system simplifies the tracking of balances and transactions, a significant improvement over Lightning Network that require additional databases to store account identifier, payment invoice/receipts.
  3. User Experience: SATS standardize the representation of small value transfers, addressing the limitations of many wallets and legacy systems with displaying values smaller than six decimal places. This standardization improves clarity and accessibility for users, making transactions as straightforward as saying “250 SATS” in conversation or hand writen on paper.
  4. Integration and Liquidity for Developers: The introduction of SATS backed by tBTC is tailored to enhance UX, integration, and liquidity within the EVM with established tooling like DEX/Bridges.
  5. Future-Proof Scalability: Targeted for deployment on Layer 2 and Layer 3 solutions of the EVM, where transaction costs are negligible, SATS could be a scalable currency option, potentially serving billions globally.

For example:

Developer shared Satoshi (SATS) token that is deployed on Sepolia that is backed by tBTC, so user can redeem all the way from SATS to Bitcoin testnet coin on the Proof of Work chain. All enabled by a few line of solidity functions that handles 100M / 1 fractional division, while leveraging 100% of tBTC tech and threshold network BTC custody infrastructure.

Finally, SATS (Ordinals) token trades $200M/day, with $1.5Billion market cap, wouldn’t a real SATS (Satoshi) stable coin offers more trust, stability and utility compare to SATS (Ordinals).

Users seem to like the fact that for $100, they can get 150,000,000 SATS (Ordinals) which is not backed by anything at all.

1 Like

Simon had a great conversation on the last DAO call on TIP76, many member suggested to share more detail on the usage of liquidity incentive. Also source code would be published on github later this week to gather feedback and peer review.

SATS Incentivization Proposal

Details on Liquidity Incentive:

The Saakuru chain, coupled with Taffy DEX are poised to become the go to chain for game-fi. We want SATS —backed by tBTC— to become the de facto in-game currency for game-fi microtransactions. With a strategic investment of $25,000 in tBTC, we can boost SATS liquidity and engagement through targeted incentives across the Taffy DEX and encourage all 30+ games lined up to launch this year on Saakuru to use SATS for microtransactions and as their token’s trading pair.

Liquidity Incentive Strategy:

Our liquidity incentive program is meticulously designed to target three key areas:

Core Liquidity: Boost liquidity in native assets (OAS, SKR, USDC), main bridging routes, and protocol core assets (TAFFY), establishing a solid foundation for our ecosystem.

Unlock Growth: New projects and their tokens will be creating liquidity pools on Taffy and we will encourage them to launch with a SATS pool by matching their contribution.

SATS Allocation Breakdown:

Pre-launch:

Audit and Initial Incentives: Allocate $5,000 for a security audit of the SATS and Taffy DEX smart contracts to ensure platform integrity and user trust. In the event that the cost of a security audit exceeds $5,000, Taffy DAO would cover the additional expense.

Month 1:

Direct $6,000 towards incentivizing selected pools paired with, OAS/SATS, SKR/SATS, TAFFY/ SATS and SATS/USDC. These pools are chosen for their potential to drive core liquidity and user engagement.

  • Oasys (OAS) - L1 that Saakuru is hosted on. Popular chain for game-fi.
  • Saakuru (SKR) - L3 that Taffy will be launching on. Just overscribed 1.3m investment on 16.5m valuation with established investors.
  • Taffy (TAFFY) - DEX with token for governance and capturing protocol fees, being fair launched. Well placed to become the no.1 DEX on Oasys / game-fi.
  • USDC - One stable necessary to allow a ramp back to USD.

Month 2:

Increase distribution rate with $7,000 to maintain momentum in the initially selected pools, while introducing new pools for the newly launched projects to increase awareness with their user base.

Month 3:

Increase distribution rate to $9,000, maintaining distribution rates for existing pools and continuing to incentivize new game launch pools, further solidifying user engagement and platform growth.

2 Likes

Hey folks, it was deemed that this request was small enough to be managed by the incentives budget of the Treasury Guild, and integrations budget of the Integrations Guild.

Both guilds were polled and voted. Thre results were:

  • Treasury Guild approved $22k incentive budget, to be split across 3 months.
  • Integrations guild approved $5k to support contract audit. The cost of the audit came to $3k, and reimbursement will be made accordingly. The audit is to be performed by Stronghold Security, with the first report due next week.

Taffy DEX is scheduled to deploy on Saakura next month, at which point incentives will begin to be distributed.

4 Likes