This is the first episode in our new DeFi Frontier series on The Edge Podcast, dedicated to spotlighting emerging builders doing interesting work in the early stages of launching protocols, such as Saturn.
Ellis Osborn and Kevin Li are the CoFounders of Saturn, and they're building the DeFi distribution layer on top of Strategy's STRC. The pitch is simple: Michael Saylor and Strategy created an 11.5% yield backed by BTC, but many still can't access it: no brokerage account, no 24/7 trading, no composability, no leverage beyond 50% LTV. Saturn fixes all this.
Saturn's two-token model uses USDat and sUSDat, bringing STRC onchain in a way that preserves the yield while unlocking everything DeFi does best. Hold sUSDat and you're earning STRC's dividend passively. Use it as collateral on Morpho and you can loop up to 4-6x. Trade the yield on their recently launched Pendle pools for USDat and sUSDat pools and you can take a view on where Saylor sets the dividend next. And through a future partnership with Strata, risk tranching will soon let users choose between a near-zero volatility senior tranche or a higher yield with the first-loss protection by the junior tranche.
When Ellis and Kevin met with Saylor privately, they described his genuine excitement for DeFi rails to help grow distribution for STRC yield. Global access, higher leverage, and DeFi composability. These are the things STRC can't do alone on NASDAQ.
The bigger thesis is harder to ignore. Kevin frames STRC as the T-bill of Bitcoin, “the risk-free rate of onchain finance” that everything else will eventually be priced against. If BTC can reach $1 million by 2035, their math suggests STRC could grow to $500 billion to $1 trillion.
Since recording this interview weeks ago, Saturn has grown from $10M TVL to $57M. Adding in another $147M from Apyx, there is now well over $200 million in tokenized STRC on Ethereum Mainnet and growing fast.
DeFi has been starving for a new real yield. While there are risks to STRC yield and we are still cautious to see Saylor’s experimental design further prove itself, if STRC can scale with the growing market cap of BTC, DeFi builders like Saturn look well positioned to play a pivotal role in growing permissionless demand for STRC on Ethereum alongside DeFi apps such as Pendle, Morpho, and Curve.
Listen to the latest Edge Podcast to hear the full conversation in our first episode of our sub-series DeFi Frontier!
Reminder: Nomatic wrote about Strategy’s STRC back in March: the structure, the mechanics, and the risks. If you haven't read it yet, check it out above!
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🔗 Guest Links 🔗
► Saturn website: saturn.credit
► Saturn on X: x.com/saturn_credit
► Ellis Osborn on X: x.com/ellisp_osborn
► Kevin Li on X: x.com/kevinlhr88
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DISCLAIMER: Nothing written in The Edge Newsletter or said on The Edge Podcast is a recommendation to buy or sell tokens or securities. This content is for educational and entertainment purposes only. Nothing shared here is financial advice. Any views expressed in our content are solely the opinion of that writer, host, or guest. Always do your own research. DeFi Dad, Nomatic, and guests may have positions in the assets or other matters discussed in this content. DeFi Dad and Nomatic hold BTC and are angel investors in Saturn.
SATURN’S DISCLAIMER: sUSDat is only available to eligible participants outside the United States only. sUSDat holders are currently earning 11.5%+ APY. This is not an offer or solicitation to buy or sell any security in any jurisdiction where prohibited, including to U.S. persons. Nothing in this post constitutes investment advice. Yield is not guaranteed and may vary. "Backed by Bitcoin" refers to collateral structure only and does not imply capital protection or risk elimination.
Saturn's Terms and Conditions https://saturn.credit/legal/terms-conditions
