Luke Xie, Before SatLayer, Luke co-founded Press Start Capital, pioneer of the pre-accelerator fellowship, writing first checks into leading projects including aPriori, Primodium, Zerodev, and a first-round investor in Monad. He co-founded the MIT x Harvard Blockchain Accelerator and BeaverBlock, the MIT crypto alumni community. Before working in crypto and blockchain, he worked at a variety of startups including Airbnb as well as ones in consumer hardware (largest Kickstarter hardware campaign) and electric vehicles. Luke is an alumnus of MIT, where he received an SB in finance and entrepreneurship.
Can you explain Bitcoin Validated Services (BVS) and how SatLayer enhances Bitcoin security for decentralised applications?
Bitcoin Validated Services (BVS) are decentralised applications, infrastructure, or protocols that integrate restaked Bitcoin into their validation methods.
Built on SatLayer, BVS enables programmable slashing on Babylon Chain, similar to EigenLayer’s approach on Ethereum.
BVS introduces new applications such as a cross-chain bridge secured by restaked Bitcoin for interoperability between Bitcoin layer-twos and other ecosystems, and a data availability protocol that ensures stored data is verifiable.
- Unlike traditional over-collateralisation methods, this approach leverages Bitcoin’s security while improving capital efficiency.
By allowing developers to tap into Bitcoin’s security model, BVS supports a wider range of decentralised applications without requiring them to be built directly on Bitcoin.
It also positions Bitcoin as a productive asset, enabling yield generation while strengthening network security.
How does SatLayer expand on Bitcoin’s security model, and why is BVS significant for BTCfi applications?
Bitcoin’s security is unmatched, but its programmability is limited. SatLayer addresses this by enabling applications on different L1s and L2s to utilise Bitcoin’s security without being built directly on its base layer.
This extends Bitcoin’s role in decentralised finance (BTCfi), leveraging its liquidity and stability.
BVS is comparable to liquid staking and restaking on Ethereum, where initially slow adoption evolved into a critical component of DeFi.
By applying a similar approach, BVS expands Bitcoin’s security beyond simple transactions, making it usable for applications such as yield strategies and cross-chain liquidity.
This enhances capital efficiency and provides a foundation for new decentralised applications and financial instruments.
How do SatLayer’s partnerships with Babylon, Sui, and Solv support BVS adoption?
Each partnership plays a role in the BVS ecosystem. While Bitcoin’s base layer remains the security foundation, the protocols and applications that integrate it vary widely.
Partnering with different projects boosts prospects for adoption and demonstrates BVS’s potential across multiple networks.
Babylon is a key partner, as SatLayer’s architecture is deployed on Babylon Chain, which supports self-custodial Bitcoin staking—a foundational element of BTCfi. Other collaborations focus on expanding awareness and practical use cases.
For example, BNB Chain allows sBTC staking through SatLayer’s Lorenzo Staking App, offering yield opportunities. Similarly, Solv’s SolvBTC can be staked with SatLayer on Ethereum for additional rewards.
These partnerships help establish Bitcoin staking as a viable security mechanism, similar to early Ethereum staking projects that formed alliances with major L1 and L2 protocols.
What are the key milestones for SatLayer’s DevNet, TestNet, and Mainnet phases?
In the DevNet phase, the focus is on refining core logic and BVS frameworks. This involves working with early dApp developers to optimise APIs and smart contracts while testing features like restaking liquid Bitcoin assets, such as LBTC and stBTC.
The TestNet phase will introduce more node operators and simulate real-world network conditions. Stress testing will assess cross-chain transactions and confirm the security of the BVS design.
This stage will also finalise integrations with SatLayer’s partners.
For Mainnet, the goal is to ensure a stable, large-scale environment capable of handling high-value assets and advanced DeFi applications.
By this stage, the developer portal and documentation will be in place to facilitate seamless deployment of Bitcoin-secured applications.
How has your venture capital background influenced your approach to building SatLayer?
Venture capital experience has reinforced the importance of identifying foundational technologies that drive ecosystem growth.
In SatLayer’s case, extending Bitcoin’s security to cross-chain DeFi is a structural shift, similar to how liquid staking became integral to Ethereum’s DeFi expansion.
BTCfi has been discussed for years but has yet to see widespread adoption, similar to how Bitcoin’s Lightning Network initially struggled to gain traction. BVS has the potential to change that by providing a secure and scalable framework for new applications.
Establishing infrastructure will be essential to gaining user trust and encouraging Bitcoin holders to participate in securing decentralised applications.
By ensuring security and usability, BVS can support a wide range of use cases, from lending and prediction markets to real-world asset tokenisation and decentralised social networks.