Deploying Phase II of SatLayer’s core restaking contracts

📜 Proposals 🗣️ Text Proposals
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Deploying Phase II of SatLayer’s core restaking contracts - Text Proposal

Summary

This proposal seeks community consensus to proceed with the Phase II deployment of SatLayer’s core restaking contracts on Babylon Genesis. Phase II expands the protocol’s functionality beyond basic restaking to include vault creation, service delegation, simple slashing, and vault tokenization. It also lays the foundation for upcoming EVM-based deployments. This is a signaling proposal only and does not request any on-chain parameter changes.

Proposal Details

Type

  • Proposal Type: Text Proposal
  • Chain: Babylon Genesis Mainnet
  • Messages: Text Proposal

Overview

In April 2025, SatLayer deployed its Phase I contracts onto Babylon Genesis, establishing the base protocol for Bitcoin restaking. Since then, the protocol has accumulated ~$3M in restaked collateral on Babylon Genesis and over ~$380M across other chains.

With the foundation in place, Phase II of SatLayer introduces the following capabilities:

  • Vault creation via a factory contract by operators
  • Registration of Bitcoin Validated Services (BVSs) to these vaults
  • Delegation of stake by operators to BVSs
  • Slashing of operators through a quorum-based voting model
  • Tokenization of vault positions (i.e. issuance of receipt tokens) for composability with other DeFi ecosystem partners

This proposal does not introduce contract changes to existing Babylon modules. Instead, it asks the Babylon community to signal support before Phase II deployment proceeds.

Proposal Scope

The scope of this proposal is limited to governance signaling. No new permissions or whitelisting are required. Upon positive signaling, SatLayer Labs will proceed with Phase II contract deployment, and continue to work with existing partners to build Bitcoin Validated Services on SatLayer.

Security Considerations

All new contracts introduced in Phase II have undergone a follow-up audit by Dedaub, a leading auditor in the Cosmos ecosystem. The team continues to run a bug bounty program on Sherlock.

Team & Resources

Proposing Entity: SatLayer Labs

Point of Contact: JJ Goi ([email protected])

Relevant Experience:

SatLayer Labs is Babylon’s designated restaking partner and one of the first teams to deploy on Babylon Genesis. The team brings deep experience across Bitcoin primitives, CosmWasm, and Ethereum, and has delivered live deployments with active TVL across multiple chains.

SatLayer introduced the concept of Bitcoin Validated Services (BVS) and has contributed to Babylon’s early adoption efforts through product, engineering, and ecosystem partnerships.

Supporting Information

Previous Community Engagement

Related Governance Actions

  • Whitelist SatLayer Labs address to deploy Phase I contracts (April 2025)

Submitted by: SatLayer Labs
Date: 2025-07-24
Contact: JJ Goi ([email protected])

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Exciting! Fully in support of bringing restaking to Babylon eco

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