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One of the most exciting parts of working with cryptocurrency is the ability to stake tokens and earn passive income. Unfortunately, some older and more established coins like Bitcoin (BTC) don't natively support staking, due to their proof of work (PoW) consensus model. To overcome this limitation, Bitcoin liquid staking platforms have emerged, which let you temporarily lock away your Bitcoin to support their networks while you earn interest on the side via decentralized finance (DeFi). PumpBTC is one such platform that plans to expand the utility of Bitcoin staking. Built on Babylon, this liquid staking solution lets people stake their Bitcoin securely with even more flexibility and access to DeFi to maximize their earning potential.
Key Takeaways:
PumpBTC uses the Babylon Bitcoin staking protocol to provide liquid staking for wBTC and BTC.b, so that users receive pumpBTC tokens at a conversion rate of 1:1. With PumpBTC, Bitcoin stakers can participate in a variety of DeFi activities with ease.
The PumpBTC ecosystem uses a dual token method that also allows investors to profit from its native cryptocurrency.
Its tokens, PUMP and vePUMP, serve as the ecosystem's governance and reward mechanisms for users to participate in decision-making and boost their staking yields.