Glossary

Satoshi (sat)

The smallest unit of Bitcoin, equal to 0.00000001 BTC (one hundred millionth of a Bitcoin).

What is Satoshi?

The smallest unit of Bitcoin, equal to 0.00000001 BTC (one hundred millionth of a Bitcoin). Lygos calculates all collateral requirements and DLC outcomes with satoshi-level precision. Every CET specifies exact satoshi amounts for both borrower and lender distributions, ensuring mathematical precision in every possible loan outcome.

Full Definition

A satoshi (sat) is the smallest denomination of Bitcoin, named after Bitcoin's pseudonymous creator Satoshi Nakamoto. One Bitcoin equals 100,000,000 satoshis. As Bitcoin's price has grown, satoshis have become the practical unit for smaller transactions and discussions. At $100,000 per BTC, one satoshi is worth $0.001. The 'stacking sats' movement encourages regular, small purchases of Bitcoin measured in satoshis. In lending contexts, collateral amounts and liquidation thresholds are often calculated down to the satoshi level for precision.

How Lygos Uses This

Lygos calculates all collateral requirements and DLC outcomes with satoshi-level precision. Every CET specifies exact satoshi amounts for both borrower and lender distributions, ensuring mathematical precision in every possible loan outcome.

Why this matters for borrowers

Understanding Satoshi (sat) helps you evaluate how different platforms handle your Bitcoin. Not all custody models are equal, and the technical details determine whether your BTC is truly safe.

Related Terms

Explore further

Borrow against your Bitcoin without giving up custody

Starting at 10% APR, $0 origination fees, and DLC-secured collateral on the Bitcoin blockchain.