Does Bitcoin have real returns? No one mentions BTCFi anymore. The people who pledged, issued coins, and messed up BTCFi have finally stopped. A project starting with B only updates a few times a month on Twitter, which is interesting But Bitcoin is still that Bitcoin, and those who truly explore it never stop. Let's sneak in! ⬇️ The fading of the BTCFi craze created by the previous round of Bitcoin staking has left us with a cold thought: Does Bitcoin really have real returns? Is there any positive externality benefit? If Bitcoin only stays in the category of stored value assets "Store of Value", then all those who engage in staking are just borrowing Bitcoin to truly repair and distribute coins. Speaking of people, if one cannot make real profits using Bitcoin, most of them are just playing rogue. I saw today that OKX @ wallet and @ satlayer held an event: dividing 800000 TGE tokens and 800 TGE community round priority participation qualifications. If there is a bargain, take advantage and quickly participate, but when I saw Satlayer's business, I was still shocked. One of their core products is actually the "yield BTC insurance fund". Wait a moment, insurance fund? I'm familiar with this. After being laid off, I went to AIA to sell insurance for six months. The training content is very detailed, and the insurance business model is very simple: Premium collection: Customers buy insurance, pay premiums, and the insurance company saves this money into a large fund pool, called "float money" before compensation is paid. The insurance company uses this money to invest in bonds, stocks, real estate, etc. Risk management: Actuaries assess risks, set premium prices, and ensure that revenue exceeds claims and costs. Insurance companies also purchase reinsurance to diversify large risks. Compensation claim: In case of an accident, the insurance company will pay for compensation from the fund pool. So the profit formula for insurance companies is: premium+investment income - compensation - operating costs=profit. Insurance companies offer free loans for floating gold statues, where customers pay first and the insurance company invests the money, and the profits go to themselves. Berkshire Hathaway initially entered the financial industry by acquiring insurance companies and utilizing the large amount of float generated by the insurance business. Buffett used his float to buy apples and Coca Cola, and snowballed to become the world's richest man. But ordinary people want to play? There's no door! The game of floating gold belongs only to giants. / SatLayer is quite bold and intelligent, and has established an income oriented insurance fund using Bitcoin. The essence of insurance is to collect money first and act later, and the time during which the intermediate funds stay is the capital efficiency period. SatLayer seizes this point by introducing pledged Bitcoin into floating funds, allowing every BTC holder to act as a "chain Buffett" and participate in insurance business by pledging BTC again, earning premiums and investment returns. This model is very clear. The SatLayer built on @ babylonlabs_io not only enjoys basic staking benefits, but also collaborates with various blockchain protocols to provide insurance and distributes premiums to the stakers. Analogous to traditional insurance, I estimate that the operating mechanism of SatLayer is similar to this: Where does the funding pool come from? Users pledge BTC or LSTs through SatLayer to form an insurance fund pool, which serves as a compensation reserve or capital reserve, similar to the floating funds of traditional insurance. Who will buy insurance? On chain, DeFi protocols or users paying premiums in exchange for insurance coverage losses; In the real world, RWA projects, traditional insurance companies, or customers pay premiums How to divide the profits? The premium is distributed to BTC stakers according to the pledge ratio, plus investment income from floating funds, BTC pledge income, LST income, Sats2 points, and so on. How to execute? By using the programmable penalty mechanism of smart contracts, insurance events can be triggered in the event of liquidation or disasters, and the fund pool will automatically compensate, which is transparent and efficient. In addition, the economic security of BTC is endorsed by BVS for the fund pool, ensuring trust and resistance to tampering. / SatLayer was founded by Luke and Arun in early 2024. The team has backgrounds in both traditional and blockchain industries, and has received $8 million in investment from top institutions such as OKX Ventures, Castle Island Ventures, Hack VC, and Franklin Templeton in a Pre sed round. In terms of business, we have already established partnerships with over 30 companies including @ luminance network, Mutual Cap, @ hyperplane, and @ redstone_difi, with a focus on essential scenarios such as insurance and liquidity custody. OKX is a mandatory activity that requires participation. The requirements are very simple: follow and join the community, then deposit 0.00001 BTC with a wallet balance of at least $10. Participation address: https://web3. (okx.com)/zh-hans/giveaway/satlayer2 // One thing to say is that there are countless projects for Bitcoin staking, and no matter what the solution is, there is no real external benefit. Unity can be seen as a nesting child, and only the ability to pull the market can be tested. As the economic layer of Bitcoin, SatLayer is transforming programmable Bitcoin into a reserve asset in new financial systems such as global RWA, stablecoins, DeFi, etc. This is a soft core science popularization article, through which you can have a partial understanding of the following knowledge: How does the insurance industry make money How SatLayer Became On Chain Berkshire Hathaway Middle aged unemployed, go sell insurance (not Author: Anymose | A Soft Core Science Popularization Writer <End of Full Text>