Staking via CLI

How to Stake BTC with Babylon via b14g and earn boosted co-staking rewards

b14g Babylon BTC Staking Tool

A CLI tool that lets you stake BTC natively on the Bitcoin network and earn co-staking rewards from the Babylon Genesis network via b14g.

GitHub - b14glabs/b14g-babylon-btc-staking-toolGitHub

Staking Workflow

The stake command starts the BTC staking process. It communicates with the Babylon Genesis chain, the Covenant emulators, and the Bitcoin network to:

• Creates your co-staking order (if it’s your first time)

• Builds and registers your staking transaction on Babylon Genesis chain

• Waits for signature verification from the Covenant emulators

• Broadcasts the staking transaction to the Bitcoin network

1. Create Order

• First, the system checks if you have an existing order on the b14g marketplace

• If no order exists:

  • A new order is created with your chosen validator address specified in the parameters.

  • The btcsharing percentage defines how rewards are split between you and the Babylon stakers

  • This order is linked 1:1 to your Babylon address

2. Staking Transaction Creation

• Uses preStakeRegistrationBabylonTransaction() from @babylonlabs-io/btc-staking-ts to create an unsigned staking transaction with:

  • Your staking amount (in satoshis)

  • Timelock period (blocks until unlock)

  • Finality provider public key

  • Your public key

  • Available UTXOs (unspent transaction outputs)

  • Current Bitcoin tip height

• This function generates:

  • Staking transaction

  • Slashing transactions

  • Unbonding transaction

  • Proof of Possession (PoP) signature

3. Babylon Delegation

• Creates a delegation message containing:

  • Staking transaction data

  • Slashing transaction signatures

  • Unbonding transaction and signatures

  • Proof of possession (PoP) signature

• Broadcasts the delegation to Babylon network through the order smart contract

• Waits for verification (delegation state becomes VERIFIED)

4. Bitcoin Broadcasting

• Once verified on Babylon, uses createSignedBtcStakingTransaction() from @babylonlabs-io/btc-staking-ts to:

  • Sign the staking transaction with your private key

  • Validate that transaction hash matches expected hash from Babylon

• Broadcasts the signed transaction to Bitcoin network

• Your BTC is now locked and staking begins