pumpBTC (PUMPBTC) is a cryptocurrency project that provides a liquid staking solution for Bitcoin through integration with the Babylon protocol. The system enables holders of tokenized Bitcoin (such as WBTC, BTCB, and similar tokens) to deposit their assets and receive pumpBTC tokens in exchange. These tokens accumulate yield over time according to the operational mechanisms of the Babylon protocol while maintaining asset liquidity. ^{[1] [11]}

Overview

pumpBTC functions as a liquid restaking protocol within the decentralized finance (DeFi) ecosystem. The project converts tokenized Bitcoin into pumpBTC tokens so that holders can participate in yield generation without permanently locking their assets. Key characteristics of the protocol include:

• Liquid Staking: Users deposit various forms of tokenized Bitcoin as collateral and, in return, receive pumpBTC tokens that represent their staked assets. These tokens accrue yield over time.
• Multi-Chain Integration: Initially deployed on networks such as Binance Smart Chain (BSC) and Ethereum, pumpBTC is designed to extend support to additional EVM-compatible chains to facilitate cross-chain participation.
• Custodial Partnerships: The protocol works with licensed custodians (for example, Cobo MPC and Coincover) to secure funds. This arrangement is intended to mitigate risks associated with asset bridging and to ensure that the staked tokens are backed by native Bitcoin reserves.
• On-Chain Transparency: pumpBTC provides a real-time dashboard that displays proof-of-asset data, enabling stakeholders to monitor the status of staked assets and accrued yields. ^{[1] [11] [3]}

History

pumpBTC was developed in 2024 to address the need for liquid staking mechanisms for Bitcoin within the DeFi sector. The project was conceived as an alternative to traditional Bitcoin staking methods, which typically require long-term asset locking. Early fundraising and token sale events were conducted to support development, and the project underwent audits and security reviews by established firms.

Since its launch, pumpBTC has focused on integrating with various blockchain networks. Its development process has involved continuous work on expanding network compatibility and refining the protocol’s security and operational features.

Technology

pumpBTC’s framework is based on a series of smart contracts that manage staking, yield accrual, and cross-chain functionality. The technical components include:

• Dual-Token Mechanism: When tokenized Bitcoin is deposited (for example, WBTC or BTCB), pumpBTC tokens are minted at an initial 1:1 ratio with the underlying asset. As yield is generated through the Babylon protocol, the token’s value is adjusted accordingly.
• Mint and Burn Process: The protocol supports operations that mint pumpBTC tokens when assets are staked and burn tokens when unstaking occurs, subsequently releasing the underlying collateral. This process is managed by the smart contracts to ensure that tokens remain backed by reserves.
• Cross-Chain Functionality: pumpBTC is deployed on multiple blockchain networks. Tokens can be transferred between chains through a mechanism that burns tokens on the source chain and mints them on the destination chain. This maintains a consistent total supply while enabling interoperability.
• Custody and Security Measures: The project uses third-party custodial services to delegate native Bitcoin to Babylon’s finality providers and to distribute yield rewards. This design minimizes direct handling of assets by the protocol and aims to lower security risks.
• Transparency and Auditing: The protocol provides on-chain dashboards and publishes audit reports that detail metrics such as total value locked (TVL), yield accrual, and asset custody. These measures contribute to operational transparency. ^{[1] [11] [4] [2]}

Tokenomics

pumpBTC issues its native token (PUMPBTC) to represent staked assets. The tokenomics are defined in the project’s smart contracts and are structured to ensure that each pumpBTC token is backed on a 1:1 basis by native Bitcoin held in reserve via custodial arrangements. Important elements include:

• Supply Metrics: The total supply of pumpBTC tokens is determined by the smart contract parameters, with the circulating supply representing the tokens in active use across supported networks.
• Yield Accrual: Yields generated by the Babylon protocol are automatically reflected in the value of pumpBTC tokens, creating a passive income mechanism for stakers.
• Governance: The pumpBTC token may also serve a governance function, allowing stakeholders to participate in protocol decisions and upgrades, as specified in the project documentation. ^{[10] [7] [1] [2]}

Use Cases

pumpBTC is designed to serve several functions within the Bitcoin and DeFi sectors:

• Liquid Staking: By enabling the staking of tokenized Bitcoin while preserving liquidity, the protocol offers an alternative to conventional staking that typically requires long-term lock-up of assets.
• Cross-Chain Participation: With its multi-chain support, pumpBTC facilitates participation in a variety of DeFi protocols, enabling interaction with multiple applications and services.
• Risk Mitigation: The use of audited smart contracts and collaboration with licensed custodians contributes to a secure staking environment that aims to reduce risks associated with asset bridging and direct custody. ^{[1] [2]}

Partnerships

PumpBTC has established partnerships with various projects in the cryptocurrency space. The platform collaborates with Babylon, a Shared Security Protocol that leverages Bitcoin to enhance the security of other Proof-of-Stake chains ^[2].

The platform also works with professional custodians like Cobo and Coincover to secure user assets. Additionally, PumpBTC has integrated with multiple DeFi platforms, allowing users to utilize their pumpBTC tokens across various applications ^[4].

Some of the integrated platforms include:

• Pendle Finance for yield boosting;
• ListaDAO for using pumpBTC as collateral;
• Synfutures Vault for deposits;
• KiloEx Hybrid Vault for deposits;
• Avalon on Zetachain and Ethereum for deposits.

Future Developments

PumpBTC plans to support native BTC staking in Stage 2 of its development. This will allow users to stake native BTC and mint pumpBTC on various EVM chains to unlock DeFi functionality and earn points ^[2].

The platform also plans to support withdrawals once Babylon is live. Users will either wait for a 7-day unstaking period or use an instant withdrawal solution ^[2].

Additionally, PumpBTC is in ongoing discussions with prominent networks like Scroll, Fuel, Zircuit, and Karak to introduce additional Point-earning opportunities for depositing or using pumpBTC on these Layer 2 networks ^[2].

pumpBTC (PUMPBTC) is a liquid staking protocol that integrates Bitcoin into the DeFi ecosystem by converting tokenized Bitcoin into yield-bearing pumpBTC tokens. The project emphasizes multi-chain compatibility, secure asset management through licensed custodians, and transparency via on-chain dashboards and regular audits. Its smart contract architecture manages the minting, burning, and cross-chain transfer of pumpBTC tokens, ensuring that each token is fully backed by native Bitcoin reserves. As pumpBTC continues to evolve and expand its network support, it represents a structured approach to addressing limitations in traditional Bitcoin staking within a decentralized finance framework. ^{[1] [2] [3] [4] [5] [6] [7] [8] [9]}