Summary

This proposal seeks to list PumpBTC as a collateral option within Lista DAO’s Innovation Zone. PumpBTC is a liquid staking token for the Babylon platform, enabling BTC holders to stake their assets while retaining liquidity. By listing PumpBTC, Lista DAO aims to expand collateral options, foster innovation, and attract Bitcoin users to the ecosystem.

Abstract

This proposal aims to add PumpBTC as one of the collaterals to Lista DAO’s Innovation Zone. This integration will empower users to leverage their PumpBTC holdings for minting lisUSD while benefiting from increased liquidity and earning yields from Babylon.

Reference

PumpBTC is a liquid staking solution designed for the Bitcoin ecosystem through the Babylon platform. It allows users to stake BTC and immediately receive PumpBTC, a 1:1 liquid representation of their staked BTC (WBTC/BTCB).

Website: https://pumpbtc.xyz Twitter: https://x.com/Pumpbtcxyz Discord: https://discord.gg/pumpbtc Docs: https://pumpbtc.gitbook.io/pumpbtc Token ticker: $pumpBTC Contract address: 0xf9C4FF105803A77eCB5DAE300871Ad76c2794fa4

Motivation

The addition of PumpBTC as collateral aligns with Lista DAO’s mission of building a diverse and robust DeFi ecosystem. Listing PumpBTC will:

1. Broaden Collateral Options: Provide Bitcoin holders a unique way to access liquidity via lisUSD while retaining exposure to BTC.
2. Enhance DeFi Participation: Encourage adoption of both Babylon and Lista DAO’s platforms, bridging Bitcoin liquidity into the DeFi space.
3. Expand Innovation Zone: As part of the Innovation Zone, PumpBTC will attract experimental and growth-oriented users, increasing TVL and community participation.

Specifications

PumpBTC represents BTC staked through Babylon and is minted at a 1:1 ratio with WBTC/BTCB. By holding PumpBTC, users retain liquidity for their BTC holdings while earning staking rewards directly from Babylon.

Proposed Parameters

•	Minimum Collateralization Ratio (MCR): 200%
•	Borrow Limit: 100,000 lisUSD
•	Mint Fee: 0%
•	Borrowing Rate: Dynamic rate
•	Withdrawal Options: PumpBTC
•	Withdrawal Fee: 0%
•	Minimum Borrow Amount: 15 lisUSD
•	Minimum Collateral Deposit: 0.001 PumpBTC

Benefits (Pros)

1. Liquidity Retention: Users can stake BTC and simultaneously access lisUSD liquidity without sacrificing their BTC exposure.
2. Increased Adoption: Bridges the gap between the Bitcoin and DeFi ecosystems, attracting new users to Lista DAO.
3. Boosted TVL: Listing PumpBTC as collateral has the potential to significantly increase TVL and utility within the Innovation Zone.

Risks (Cons)

1. Market Adoption Uncertainty: PumpBTC is still gaining traction, and its adoption rate may impact its usability as collateral.
2. Liquidity Risk: As a new collateral type, PumpBTC may introduce liquidity constraints during market volatility.

Voting

A Yes vote will approve the listing of PumpBTC as collateral in the Innovation Zone under the specified parameters.

A No vote will reject this proposal, maintaining the current list of collateral assets.

By listing PumpBTC, Lista DAO takes a significant step toward expanding its ecosystem, empowering Bitcoin users, and driving innovation in the DeFi space. Let’s unlock new possibilities together!