$BTC

Project Overview

PumpBTC is a Bitcoin liquid staking protocol built on Babylon. Users can stake BTC derivatives such as BTCB and WBTC to mint $pumpBTC, a 1:1 pegged token with liquidity that can be used in DeFi scenarios while continuously earning native yield distributed by the Babylon protocol. Unlike traditional PoS staking models, PumpBTC introduces a yield mechanism for BTC, addressing the lack of native interest-bearing opportunities for BTC in DeFi.

The protocol does not custody user assets directly. Instead, it partners with custodians like Cobo and Coincover to hold BTC on the native chain and stake on behalf of users via Babylon, thereby avoiding bridge risks and liquidity fragmentation. Currently, PumpBTC supports BSC and Ethereum, with plans to expand to Berachain, Base, and other chains.

The project has integrated with over 70 other projects and completed a $10 million seed round in October 2024, with participation from SevenX, Mirana, Mantle, and others. Overall, PumpBTC occupies a structurally significant position in the BTCFi narrative, with its growth prospects closely tied to the development of the Babylon mainnet.

Project Highlights

Establishing a Native Yield Path for BTCPumpBTC builds a bridge between BTC derivatives and Babylon staking, allowing assets like BTCB and WBTC to maintain on-chain liquidity while earning native yield from the Babylon protocol. Compared to the passive use of BTC in traditional DeFi, this model introduces an interest-bearing mechanism similar to Ethereum's LSTs, potentially forming a foundational, stable yield path within BTCFi.

Staking Architecture Without Bridge DependencyMost BTC DeFi applications rely on cross-chain bridges, locking BTC and issuing wrapped assets on target chains, which introduces significant systemic risk. PumpBTC avoids this by collaborating with custodians like Cobo and Coincover to hold BTC directly on the mainnet and stake it via Babylon on behalf of users. This non-bridged approach mitigates common bridge-related security issues and reduces asset fragmentation