Bitcoin staking is revolutionizing Decentralized Finance and is offering better returns to all investors. That is why PumpBTC has positioned itself as one of the main platforms for staking BTC. If you don’t know what it is and how it works, you are about to discover a way to take your Bitcoin investments to the next level.
What is PumpBTC?
PumpBTC is a liquid restaking solution specifically designed to integrate decentralized finances (DeFi) into the Bitcoin ecosystem through Babylon. The platform simplifies the Bitcoin staking process by offering users the ability to stak their Bitcoins and receive liquidity tokens instantly, eliminating traditional waiting periods. This approach allows BTC holders to maximize their returns, earning profits while maintaining their liquidity.
Inspired by the “pump” meme culture within the Bitcoin community, PumpBTC seeks to transform Bitcoin into an interest-generating asset. By enabling Bitcoin staking, it addresses limitations of traditional Proof-of-Stake (PoS) systems, which often rely on native tokens and face challenges such as inflation and uneven token distribution. PumpBTC offers Bitcoin Holders a unique way to generate rewards, while also providing greater security to other PoS chains through Bitcoin’s substantial market capitalization.
Incorporating Bitcoin into the staking process improves the security of PoS chains, which drives greater user trust and can lead to a significant increase in Total Value Locked (TVL) within these ecosystems. Unlike conventional methods of generating yield that require transferring Bitcoin between different chains and add complexity, PumpBTC ensures that liquidity and staking are kept simple and efficient for users. Through its integration with Babylon, PumpBTC takes a step towards creating a more robust and interconnected Bitcoin-DeFi landscape.
How Does PumpBTC work?
PumpBTC works as a solution that allows users to use their Bitcoin on multiple blockchain networks securely and efficiently. Initially, it is deployed on the Binance Smart Chain (BSC), but with plans to expand to other EVM-compatible networks. The process begins when users deposit their Bitcoin assets, such as BTCB or WBTC, into staking contracts. In return, they receive $pumpBTC tokens, which are backed by equivalent BTC reserves and generate automatic returns via the Babylon protocol.
Asset security is ensured through collaboration with professional custodians, such as Cobo MPC and Coincover, who manage the funds without PumpBTC directly touching users’ assets. These custodians are responsible for delegating native BTC to Babylon, ensuring that rewards are distributed appropriately. In addition, PumpBTC maintains full transparency through a dashboard that displays real-time asset pools and transaction data.
The system allows $pumpBTC tokens to be used in multiple DeFi ecosystems, offering greater flexibility compared to direct staking on Babylon. Users can exchange their tokens on different chains or platforms, maintaining liquidity while taking advantage of the returns. The design also includes a $pumpBTC burning and mining process on inter-chain transfers, without affecting the overall supply, always maintaining a 1:1 backing in native BTC.
PumpBTC Main Features
PumpBTC offers several key features that seek to maximize the security, usability and performance of users’ Bitcoin in the DeFi environment.
One of its main features is uncompromising security, which is achieved through collaboration with licensed custodians. This ensures that Bitcoin assets remain secure and backed 1:1 on the original network, without moving your Bitcoin from its native network.
In addition, PumpBTC integrates Bitcoin on multiple Ethereum Virtual Machine (EVM) compatible chains, as well as Layer 2 and Layer 3 (L2 and L3) scaling solutions. This multi-chain integration allows users to use their Bitcoin not only as a staking asset, but also as collateral or liquidity provider (LP) tokens, opening up new investment and liquidity opportunities in multiple blockchain ecosystems.
In terms of revenue generation, PumpBTC allows users to earn native yields directly through the Babylon protocol, without the complications that often accompany traditional yield farming methods. This feature makes it easier for users to generate revenue more securely and easily with their Bitcoins.
Finally, PumpBTC introduces a point accumulation system that rewards users for their farming activities on various L2 and L3 chains. Users can accumulate additional points and unlock additional benefits within the PumpBTC ecosystem, incentivizing more active participation in the platform and offering more added value in the long run.
Is Staking on PumpBTC Secure?
PumpBTC’s security is based on a robust structure that prioritizes the protection of Bitcoin assets through two main approaches. Instead of relying on decentralized bridges, which are often vulnerable to contract failures, PumpBTC collaborates with licensed custodians, ensuring that assets are backed up at all times. In addition, full transparency allows users to verify in real time that PumpBTC tokens are backed by corresponding BTCs, reinforcing trust in the platform.
PumpBTC uses advanced Multiparty Computing (MPC) technology, whereby multiple parties collaborate to generate and sign transactions without ever exposing full private keys. This eliminates single points of failure and protects assets against internal theft or fraud. With Cobo’s threshold signature scheme (TSS), private keys never materialize in one place, making transactions more secure.
In addition, the platform strengthens its security through Coincover’s risk mitigation strategies, which protect users against attacks such as account hijacking and ransomware. Transparency is key to the system, with a dashboard that provides verifiable data on reserves, audits, and minting and burning processes, ensuring the integrity and security of users’ assets.
How to stake Bitcoin in PumpBTC – Step by Step
To stakecoin on PumpBTC, the process is simple and is designed so that users can do it quickly and without technical complications. The first step is to access the PumpBTC website and click on “Connect Wallet”. Here, you will need to select the wallet of your choice from the supported options. Once selected, a notification will appear on the wallet for you to confirm the connection. Once you accept, you are ready to start the staking process.
Then, enter the amount of Bitcoin you wish to stake. PumpBTC will take care of the whole process in the background, including converting your BTC to its native Babylon-compatible version, so that it can be used in the staking protocol. After depositing, you will receive BTC-derived tokens that you can immediately use in other DeFi products, providing greater flexibility and liquidity for your assets.
This process not only simplifies Bitcoin staking, but also allows you to earn returns while maintaining the ability to use your assets on different platforms. This functionality also includes tokenized versions such as BTCB and WBTC on EVM networks, further increasing the interoperability and reach of the system.
Conclusion
Staking Bitcoin on PumpBTC is extremely simple. This has made it possible for thousands of users to earn additional returns on their investments.
PumpBTC has set out to expand the possibilities offered by the world’s most important cryptocurrency through staking and tokenized versions of BTC.
Its relationship with the Babylon ecosystem, and its multiple functionalities, make PumpBTC a platform that all Bitcoin holders should know.