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Pump

Status
Deposits Live
Type
Liquid Staking
TVL
₿3,769
Associated Layers
Ethereum
Pump offers a mechanism that enables users to deposit wrapped BTC into smart contracts on EVM-based chains. Users receive PumpBTC, a token representing staked BTC, on Babylon in exchange for depositing a wrapped BTC token

Metrics

BTC Locked
Total amount of pumpBTC locked on Base, BNB Smart Chain, Ethereum, and Mantle per day.
Assessment
Asset Custody
PumpBTC works with custodians to store bitcoin assets
PumpBTC works with custodial providers to store the BTC that matches PumpBTC deposits. When a user deposits a wrapped bitcoin token into the PumpBTC contract, they are given PumpBTC in return.

After receiving the deposit, an operator (likely one of the custodians) of the contract then manually exchanges wrapped bitcoin for native bitcoin to deposit onto Babylon.

Cobo and Coinover have been mentioned as custodians participating in Pump.
Staking Type
Custodians deposit users' BTC on their behalf
The aforementioned custodians are responsible for delegating BTC on users’ behalf. When they exchange wrapped bitcoin for native bitcoin, they then take the newly acquired bitcoin to stake into the Babylon protocol.

🔬 Babylon’s staking protocol is not currently live. It is only accepting deposits.
Slashing Risk
Slashing is done via Babylon, but is not currently live
🔬 Babylon’s staking protocol is not currently live.
How APY is determined
Incentive model
🔬 Babylon’s staking is not currently securing any PoS chains. Rewards are only issued through points. Once live, we will review Babylon’s incentive and issuance mechanism.
Smart contracts & audits
Contracts have been audited
The contracts for PumpBTC have been audited. The audit reports can be found below.

⚠️ Audits of smart contracts do not mean exploits are not possible. Users should not deposit more funds than they’re willing to lose.

Blocksec audit

Quantstamp
Contracts are permissioned
Both contracts associated with PumpBTC are permissioned.

The staking contract can be:

- Paused entirely.

- A cap can be set, limiting the amount of assets that can be staked.

- Have specific fees be set for unstaking, including extremely high fees (up to 100%).

- Paused for unstaking and only allow staking.

For a full look into the staking contract, you can read it here.
Knowledge Bits
Learn more