> ## Documentation Index
> Fetch the complete documentation index at: https://satoshiapp.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Understanding the Protocol

> Comprehensive Technical Overview

Satoshi Perps is a protocol designed to bring Bitcoin-backed perpetual contracts to the Core blockchain. Its mission is to enhance capital efficiency for Bitcoin holders while maintaining their exposure to BTC. Satoshi Perps achieves this by:

* Enabling Bitcoin holders to earn yields on their BTC without losing directional exposure.
* Facilitating on-chain perpetual trading using Bitcoin-based assets as collateral.
* Providing simplified and scalable liquidity through Bitcoin-denominated liquidity pools.

:flow chart:

These are achieved through a sophisticated system architecture comprising five core components:

1. Vault
2. Routers
3. Price Feeds
4. \$SAT Satoshi App Token
5. SLP

Each of these components plays a crucial role in creating a seamless, secure, and efficient trading environment. Let’s delve into each component in detail.