# How does Satellite City work?

Satellite City has launched ETH/USDT/USDC/DAI pools to provide greater capacity for oBTC Tunnel. These assets will be used as collaterals of the oBTC Tunnel and will be calculated in the Asset Ratio.&#x20;

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 amount (150% so far), assets will not be liquidated but minting will be paused. However, if a black swan incident occurs (eg. loss of the underlying BTC), compensation will be provided by the decentralized insurance protocols (Nsure, COVER, etc.) first, followed by Satellite City assets and BOR in the tunnel. In return for extremely rare cases, those who stake assets in Satellite City can receive a long-term reward of BOR yield-farming.


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