How does Satellite City work?
Imagine a Boring tunnel connecting different blockchain universes. Sometimes the capacity of the tunnel may not meet requirements. Thus, we are introducing a Satellite City to provide greater capacity for oBTC Tunnel. Now, the Satellite City has launched ETH/USDT/USDC/DAI/YFI/YFII/LINK/BAND/NEST/HBTC. These assets will be used as collaterals of the oBTC Tunnel together with BOR in the tunnel and will be calculated in Asset Ratio.
Please note that there is no impermanent loss of assets in Satellite City, nor will they become PP Tokens. If the Asset Ratio is less than the specified ratio (150% so far), assets will not be liquidated, but the minting will stop. However, if a black swan incident occurs (eg. loss of the underlying BTC), compensation will be offered by the decentralized insurance protocols (Nsure, COVER, etc.) first, followed by Satellite City assets and BOR in the tunnel. In return for extremely rare events, those who stake assets in Satellite City can receive a long-term reward of BOR yield-farming.
Last modified 8mo ago
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