PumpBTC
About
PumpBTC is a liquid staking solution built on top of Babylon, enabling Bitcoin holders to stake wrapped BTC (WBTC, BTCB, FBTC) and receive $pumpBTC liquid staking tokens that represent their staked position. By partnering with licensed custodians Cobo and Coincover for asset safety, the platform lets users earn Babylon staking rewards while retaining the ability to use $pumpBTC across multiple EVM-compatible chains (BSC, Berachain, Scroll, and others) for DeFi activities such as lending, LP provision, and cross-chain integrations.
Where Does Yield Come From?
How PumpBTC generates yield
PumpBTC earns rewards from several sources, which flow to the $pumpBTC token you hold.
Babylon staking rewards (the core layer)
When you stake wrapped Bitcoin (like WBTC, BTCB, or FBTC), the platform's custodians (Cobo and Coincover) delegate the actual Bitcoin to Babylon's "Finality Providers" on the Bitcoin mainnet. In return, Babylon pays rewards. These rewards come from two places: new tokens Babylon creates through inflation, and fees Babylon charges to other proof-of-stake blockchains for security services. This is the base yield that $pumpBTC automatically collects at the token level.
Points campaigns (during the pre-season period)
Users can also earn points on top of the staking yield:
- PumpBTC Points – earned by staking, referring team members, and doing other activities on the platform
- Babylon Points – earned alongside the above
- FBTC Points – if you stake FBTC, you earn these too
Future Layer 2 integrations
PumpBTC plans to connect with networks like Scroll, Fuel, Zircuit, and Karak. Once live, depositing or using $pumpBTC on those chains will open up additional point-earning opportunities.
DeFi strategies on the liquid staking token
PumpBTC also runs its own DeFi strategies to try to boost the base yield on $pumpBTC, though the details of those strategies are not yet spelled out.
Withdrawals and fees
- Withdrawing your stake takes 7 days, though an instant withdrawal option is planned.
- No obvious protocol fee is taken from your yield. The only mentioned cost is a small spread (a few basis points) paid to merchants when WBTC flows into the system.
Key thing to remember
The total supply of $pumpBTC is always fully backed 1:1 by actual Bitcoin held in custody and on Babylon. As Babylon rewards accrue, the value of $pumpBTC increases automatically – you don't need to claim or re-stake manually.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
BlockSec05-08-2024 |
| This BlockSec audit identifies several precision-loss concerns and code-quality recommendations for PumpBTC's staking contracts, but the severity ratings of individual findings could not be extracted from the PDF due to conversion limitations. The centralization risks and off-chain logic dependencies noted warrant further due diligence. |
Quantstamp08-07-2024 - 10-07-2024 |
| This audit found no critical, high, or medium severity issues; the two low/informational findings were acknowledged by the team, and the report flags important centralization and depeg risks that users should consider before interacting with the protocol. |
Quantstamp25-11-2024 - 29-11-2024 |
| The audit found no high-severity issues and only one medium finding (fixed), indicating generally sound contract logic, but the protocol carries residual centralization risk from privileged roles and reliance on a single off-chain price updater, which users should evaluate before depositing. |
BlockSec09-12-2024 |
| This audit identified no exploitable security vulnerabilities in the pumpBTC-cairo contracts; only a minor code-quality recommendation and an acknowledged centralization risk note were recorded. The report reflects a clean security posture for the audited codebase. |
Backers
On October 29, 2024, PumpBTC announced the successful closure of a $10 million seed funding round. The round was co-led by SevenX Ventures and Mirana. Participating institutional investors included UTXO Management, 0xMantle Ecosystem Fund, Seven Seas Capital, Istari Ventures, Arcane Group, CoinSummer Labs, Sharding Capital, and 10K Ventures. Angel investors came from Quantstamp, Veda Labs, WrappedBTC (WBTC), Stepn, Cyber, SynFutures, Superteam, and RedStone DeFi. The announcement states that the funding will fuel development of PumpBTC's liquid staking solutions and the upcoming launch of BTCfi (a BTC CeDeFi Yield Vault platform).
Legal
Legal form
Limited company (PumpBTC Limited)
Status and notes
The Terms of Service (available at gitbook.io/pumpbtc/resources/term-of-service) state the website and services are operated by or on behalf of "PumpBTC Limited" (referred to as the "Company"). Arbitration is governed by the Rules of the Milan Chamber of Arbitration. Contact email: [email protected]. The incorporation jurisdiction of PumpBTC Limited is not explicitly disclosed in the Terms. No separate privacy policy or imprint page was found on the public website or documentation.