diff --git a/.github/workflows/babylon_vault.yml b/.github/workflows/babylon_vault.yml
new file mode 100644
index 000000000..617cd7100
--- /dev/null
+++ b/.github/workflows/babylon_vault.yml
@@ -0,0 +1,26 @@
+name: Babylon Vault
+
+on:
+  pull_request:
+    branches:
+      - main
+    paths:
+      - 'smart-contracts/contracts/babylon-vault/Cargo.toml'
+      - 'smart-contracts/contracts/babylon-vault/**.rs'
+      - '.github/workflows/rust_basic.yml'
+      - '.github/workflows/babylon_vault.yml'
+  push:
+    branches:
+      - main
+    paths:
+      - 'smart-contracts/contracts/babylon-vault/Cargo.toml'
+      - 'smart-contracts/contracts/babylon-vault/**.rs'
+      - '.github/workflows/rust_basic.yml'
+      - '.github/workflows/babylon_vault.yml'
+  workflow_dispatch:
+
+jobs:
+  unit-test:
+    uses: ./.github/workflows/rust_basic.yml
+    with:
+      target: 'contracts/babylon-vault'
\ No newline at end of file
diff --git a/scripts/git/pre-commit b/scripts/git/pre-commit
index 4e9a9b52f..e57932db2 100644
--- a/scripts/git/pre-commit
+++ b/scripts/git/pre-commit
@@ -44,3 +44,4 @@ update_schemas_and_formatting token-burner
 update_schemas_and_formatting cl-vault
 update_schemas_and_formatting merkle-incentives
 update_schemas_and_formatting range-middleware
+update_schemas_and_formatting babylon-vault
diff --git a/smart-contracts/Cargo.lock b/smart-contracts/Cargo.lock
index d0bdec7f8..2816a2f67 100644
--- a/smart-contracts/Cargo.lock
+++ b/smart-contracts/Cargo.lock
@@ -1398,6 +1398,17 @@ dependencies = [
  "tower-service",
 ]
 
+[[package]]
+name = "babylon-vault"
+version = "0.0.1"
+dependencies = [
+ "cosmwasm-schema 1.5.4",
+ "cosmwasm-std",
+ "cw-storage-plus 1.2.0",
+ "cw2 1.1.2",
+ "thiserror",
+]
+
 [[package]]
 name = "backtrace"
 version = "0.3.69"
diff --git a/smart-contracts/Cargo.toml b/smart-contracts/Cargo.toml
index 270f37c13..8c6c1b897 100644
--- a/smart-contracts/Cargo.toml
+++ b/smart-contracts/Cargo.toml
@@ -17,6 +17,7 @@ members = [
   "contracts/dex-router-osmosis",
   "contracts/lst-dex-adapter-osmosis",
   "contracts/lst-adapter-osmosis",
+  "contracts/babylon-vault",
 ]
 
 [workspace.dependencies]
diff --git a/smart-contracts/contracts/babylon-vault/Cargo.toml b/smart-contracts/contracts/babylon-vault/Cargo.toml
new file mode 100644
index 000000000..11290aad4
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/Cargo.toml
@@ -0,0 +1,31 @@
+[package]
+authors = ["Quasar"]
+edition = "2021"
+name = "babylon-vault"
+version = "0.0.1"
+readme = ""
+repository = "https://github.com/quasar-finance/quasar"
+homepage = "https://quasar.fi"
+documentation = ""
+license = "MPL-2.0"
+description = "A vault for babylon lsts"
+keywords = ["cosmwasm", "lst", "btc"]
+
+exclude = [
+  "babylon_vault.wasm",
+  "hash.txt",
+]
+
+[lib]
+crate-type = ["cdylib", "rlib"]
+
+[features]
+default = []
+library = []
+
+[dependencies]
+cosmwasm-std = { workspace = true }
+cosmwasm-schema = { workspace = true }
+cw-storage-plus = { workspace = true }
+thiserror = { workspace = true }
+cw2 = { workspace = true }
diff --git a/smart-contracts/contracts/babylon-vault/examples/schema.rs b/smart-contracts/contracts/babylon-vault/examples/schema.rs
new file mode 100644
index 000000000..2d9623f4f
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/examples/schema.rs
@@ -0,0 +1,10 @@
+use babylon_vault::msg::{ExecuteMsg, InstantiateMsg, QueryMsg};
+use cosmwasm_schema::write_api;
+
+fn main() {
+    write_api! {
+        instantiate: InstantiateMsg,
+        query: QueryMsg,
+        execute: ExecuteMsg,
+    }
+}
diff --git a/smart-contracts/contracts/babylon-vault/schema/babylon-vault.json b/smart-contracts/contracts/babylon-vault/schema/babylon-vault.json
new file mode 100644
index 000000000..cb0a68945
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/schema/babylon-vault.json
@@ -0,0 +1,196 @@
+{
+  "contract_name": "babylon-vault",
+  "contract_version": "0.0.1",
+  "idl_version": "1.0.0",
+  "instantiate": {
+    "$schema": "http://json-schema.org/draft-07/schema#",
+    "title": "InstantiateMsg",
+    "type": "object",
+    "additionalProperties": false
+  },
+  "execute": {
+    "$schema": "http://json-schema.org/draft-07/schema#",
+    "title": "ExecuteMsg",
+    "oneOf": [
+      {
+        "type": "object",
+        "required": [
+          "deposit"
+        ],
+        "properties": {
+          "deposit": {
+            "type": "object",
+            "additionalProperties": false
+          }
+        },
+        "additionalProperties": false
+      },
+      {
+        "type": "object",
+        "required": [
+          "withdraw"
+        ],
+        "properties": {
+          "withdraw": {
+            "type": "object",
+            "additionalProperties": false
+          }
+        },
+        "additionalProperties": false
+      },
+      {
+        "type": "object",
+        "required": [
+          "claim"
+        ],
+        "properties": {
+          "claim": {
+            "type": "object",
+            "additionalProperties": false
+          }
+        },
+        "additionalProperties": false
+      },
+      {
+        "type": "object",
+        "required": [
+          "register_lst"
+        ],
+        "properties": {
+          "register_lst": {
+            "type": "object",
+            "required": [
+              "denom"
+            ],
+            "properties": {
+              "denom": {
+                "type": "string"
+              }
+            },
+            "additionalProperties": false
+          }
+        },
+        "additionalProperties": false
+      }
+    ]
+  },
+  "query": {
+    "$schema": "http://json-schema.org/draft-07/schema#",
+    "title": "QueryMsg",
+    "oneOf": [
+      {
+        "type": "object",
+        "required": [
+          "pending"
+        ],
+        "properties": {
+          "pending": {
+            "type": "object",
+            "required": [
+              "address"
+            ],
+            "properties": {
+              "address": {
+                "type": "string"
+              }
+            },
+            "additionalProperties": false
+          }
+        },
+        "additionalProperties": false
+      },
+      {
+        "type": "object",
+        "required": [
+          "claimable"
+        ],
+        "properties": {
+          "claimable": {
+            "type": "object",
+            "required": [
+              "address"
+            ],
+            "properties": {
+              "address": {
+                "type": "string"
+              }
+            },
+            "additionalProperties": false
+          }
+        },
+        "additionalProperties": false
+      },
+      {
+        "type": "object",
+        "required": [
+          "balance_in_underlying"
+        ],
+        "properties": {
+          "balance_in_underlying": {
+            "type": "object",
+            "additionalProperties": false
+          }
+        },
+        "additionalProperties": false
+      }
+    ]
+  },
+  "migrate": null,
+  "sudo": null,
+  "responses": {
+    "balance_in_underlying": {
+      "$schema": "http://json-schema.org/draft-07/schema#",
+      "title": "Uint128",
+      "description": "A thin wrapper around u128 that is using strings for JSON encoding/decoding, such that the full u128 range can be used for clients that convert JSON numbers to floats, like JavaScript and jq.\n\n# Examples\n\nUse `from` to create instances of this and `u128` to get the value out:\n\n``` # use cosmwasm_std::Uint128; let a = Uint128::from(123u128); assert_eq!(a.u128(), 123);\n\nlet b = Uint128::from(42u64); assert_eq!(b.u128(), 42);\n\nlet c = Uint128::from(70u32); assert_eq!(c.u128(), 70); ```",
+      "type": "string"
+    },
+    "claimable": {
+      "$schema": "http://json-schema.org/draft-07/schema#",
+      "title": "Uint128",
+      "description": "A thin wrapper around u128 that is using strings for JSON encoding/decoding, such that the full u128 range can be used for clients that convert JSON numbers to floats, like JavaScript and jq.\n\n# Examples\n\nUse `from` to create instances of this and `u128` to get the value out:\n\n``` # use cosmwasm_std::Uint128; let a = Uint128::from(123u128); assert_eq!(a.u128(), 123);\n\nlet b = Uint128::from(42u64); assert_eq!(b.u128(), 42);\n\nlet c = Uint128::from(70u32); assert_eq!(c.u128(), 70); ```",
+      "type": "string"
+    },
+    "pending": {
+      "$schema": "http://json-schema.org/draft-07/schema#",
+      "title": "Array_of_Claim",
+      "type": "array",
+      "items": {
+        "$ref": "#/definitions/Claim"
+      },
+      "definitions": {
+        "Claim": {
+          "type": "object",
+          "required": [
+            "amount",
+            "expiration"
+          ],
+          "properties": {
+            "amount": {
+              "$ref": "#/definitions/Uint128"
+            },
+            "expiration": {
+              "$ref": "#/definitions/Timestamp"
+            }
+          },
+          "additionalProperties": false
+        },
+        "Timestamp": {
+          "description": "A point in time in nanosecond precision.\n\nThis type can represent times from 1970-01-01T00:00:00Z to 2554-07-21T23:34:33Z.\n\n## Examples\n\n``` # use cosmwasm_std::Timestamp; let ts = Timestamp::from_nanos(1_000_000_202); assert_eq!(ts.nanos(), 1_000_000_202); assert_eq!(ts.seconds(), 1); assert_eq!(ts.subsec_nanos(), 202);\n\nlet ts = ts.plus_seconds(2); assert_eq!(ts.nanos(), 3_000_000_202); assert_eq!(ts.seconds(), 3); assert_eq!(ts.subsec_nanos(), 202); ```",
+          "allOf": [
+            {
+              "$ref": "#/definitions/Uint64"
+            }
+          ]
+        },
+        "Uint128": {
+          "description": "A thin wrapper around u128 that is using strings for JSON encoding/decoding, such that the full u128 range can be used for clients that convert JSON numbers to floats, like JavaScript and jq.\n\n# Examples\n\nUse `from` to create instances of this and `u128` to get the value out:\n\n``` # use cosmwasm_std::Uint128; let a = Uint128::from(123u128); assert_eq!(a.u128(), 123);\n\nlet b = Uint128::from(42u64); assert_eq!(b.u128(), 42);\n\nlet c = Uint128::from(70u32); assert_eq!(c.u128(), 70); ```",
+          "type": "string"
+        },
+        "Uint64": {
+          "description": "A thin wrapper around u64 that is using strings for JSON encoding/decoding, such that the full u64 range can be used for clients that convert JSON numbers to floats, like JavaScript and jq.\n\n# Examples\n\nUse `from` to create instances of this and `u64` to get the value out:\n\n``` # use cosmwasm_std::Uint64; let a = Uint64::from(42u64); assert_eq!(a.u64(), 42);\n\nlet b = Uint64::from(70u32); assert_eq!(b.u64(), 70); ```",
+          "type": "string"
+        }
+      }
+    }
+  }
+}
diff --git a/smart-contracts/contracts/babylon-vault/schema/raw/execute.json b/smart-contracts/contracts/babylon-vault/schema/raw/execute.json
new file mode 100644
index 000000000..b978c2b19
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/schema/raw/execute.json
@@ -0,0 +1,66 @@
+{
+  "$schema": "http://json-schema.org/draft-07/schema#",
+  "title": "ExecuteMsg",
+  "oneOf": [
+    {
+      "type": "object",
+      "required": [
+        "deposit"
+      ],
+      "properties": {
+        "deposit": {
+          "type": "object",
+          "additionalProperties": false
+        }
+      },
+      "additionalProperties": false
+    },
+    {
+      "type": "object",
+      "required": [
+        "withdraw"
+      ],
+      "properties": {
+        "withdraw": {
+          "type": "object",
+          "additionalProperties": false
+        }
+      },
+      "additionalProperties": false
+    },
+    {
+      "type": "object",
+      "required": [
+        "claim"
+      ],
+      "properties": {
+        "claim": {
+          "type": "object",
+          "additionalProperties": false
+        }
+      },
+      "additionalProperties": false
+    },
+    {
+      "type": "object",
+      "required": [
+        "register_lst"
+      ],
+      "properties": {
+        "register_lst": {
+          "type": "object",
+          "required": [
+            "denom"
+          ],
+          "properties": {
+            "denom": {
+              "type": "string"
+            }
+          },
+          "additionalProperties": false
+        }
+      },
+      "additionalProperties": false
+    }
+  ]
+}
diff --git a/smart-contracts/contracts/babylon-vault/schema/raw/instantiate.json b/smart-contracts/contracts/babylon-vault/schema/raw/instantiate.json
new file mode 100644
index 000000000..1352613d5
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/schema/raw/instantiate.json
@@ -0,0 +1,6 @@
+{
+  "$schema": "http://json-schema.org/draft-07/schema#",
+  "title": "InstantiateMsg",
+  "type": "object",
+  "additionalProperties": false
+}
diff --git a/smart-contracts/contracts/babylon-vault/schema/raw/query.json b/smart-contracts/contracts/babylon-vault/schema/raw/query.json
new file mode 100644
index 000000000..630717c77
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/schema/raw/query.json
@@ -0,0 +1,61 @@
+{
+  "$schema": "http://json-schema.org/draft-07/schema#",
+  "title": "QueryMsg",
+  "oneOf": [
+    {
+      "type": "object",
+      "required": [
+        "pending"
+      ],
+      "properties": {
+        "pending": {
+          "type": "object",
+          "required": [
+            "address"
+          ],
+          "properties": {
+            "address": {
+              "type": "string"
+            }
+          },
+          "additionalProperties": false
+        }
+      },
+      "additionalProperties": false
+    },
+    {
+      "type": "object",
+      "required": [
+        "claimable"
+      ],
+      "properties": {
+        "claimable": {
+          "type": "object",
+          "required": [
+            "address"
+          ],
+          "properties": {
+            "address": {
+              "type": "string"
+            }
+          },
+          "additionalProperties": false
+        }
+      },
+      "additionalProperties": false
+    },
+    {
+      "type": "object",
+      "required": [
+        "balance_in_underlying"
+      ],
+      "properties": {
+        "balance_in_underlying": {
+          "type": "object",
+          "additionalProperties": false
+        }
+      },
+      "additionalProperties": false
+    }
+  ]
+}
diff --git a/smart-contracts/contracts/babylon-vault/schema/raw/response_to_balance_in_underlying.json b/smart-contracts/contracts/babylon-vault/schema/raw/response_to_balance_in_underlying.json
new file mode 100644
index 000000000..25b73e8f2
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/schema/raw/response_to_balance_in_underlying.json
@@ -0,0 +1,6 @@
+{
+  "$schema": "http://json-schema.org/draft-07/schema#",
+  "title": "Uint128",
+  "description": "A thin wrapper around u128 that is using strings for JSON encoding/decoding, such that the full u128 range can be used for clients that convert JSON numbers to floats, like JavaScript and jq.\n\n# Examples\n\nUse `from` to create instances of this and `u128` to get the value out:\n\n``` # use cosmwasm_std::Uint128; let a = Uint128::from(123u128); assert_eq!(a.u128(), 123);\n\nlet b = Uint128::from(42u64); assert_eq!(b.u128(), 42);\n\nlet c = Uint128::from(70u32); assert_eq!(c.u128(), 70); ```",
+  "type": "string"
+}
diff --git a/smart-contracts/contracts/babylon-vault/schema/raw/response_to_claimable.json b/smart-contracts/contracts/babylon-vault/schema/raw/response_to_claimable.json
new file mode 100644
index 000000000..25b73e8f2
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/schema/raw/response_to_claimable.json
@@ -0,0 +1,6 @@
+{
+  "$schema": "http://json-schema.org/draft-07/schema#",
+  "title": "Uint128",
+  "description": "A thin wrapper around u128 that is using strings for JSON encoding/decoding, such that the full u128 range can be used for clients that convert JSON numbers to floats, like JavaScript and jq.\n\n# Examples\n\nUse `from` to create instances of this and `u128` to get the value out:\n\n``` # use cosmwasm_std::Uint128; let a = Uint128::from(123u128); assert_eq!(a.u128(), 123);\n\nlet b = Uint128::from(42u64); assert_eq!(b.u128(), 42);\n\nlet c = Uint128::from(70u32); assert_eq!(c.u128(), 70); ```",
+  "type": "string"
+}
diff --git a/smart-contracts/contracts/babylon-vault/schema/raw/response_to_pending.json b/smart-contracts/contracts/babylon-vault/schema/raw/response_to_pending.json
new file mode 100644
index 000000000..e31aaea7b
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/schema/raw/response_to_pending.json
@@ -0,0 +1,42 @@
+{
+  "$schema": "http://json-schema.org/draft-07/schema#",
+  "title": "Array_of_Claim",
+  "type": "array",
+  "items": {
+    "$ref": "#/definitions/Claim"
+  },
+  "definitions": {
+    "Claim": {
+      "type": "object",
+      "required": [
+        "amount",
+        "expiration"
+      ],
+      "properties": {
+        "amount": {
+          "$ref": "#/definitions/Uint128"
+        },
+        "expiration": {
+          "$ref": "#/definitions/Timestamp"
+        }
+      },
+      "additionalProperties": false
+    },
+    "Timestamp": {
+      "description": "A point in time in nanosecond precision.\n\nThis type can represent times from 1970-01-01T00:00:00Z to 2554-07-21T23:34:33Z.\n\n## Examples\n\n``` # use cosmwasm_std::Timestamp; let ts = Timestamp::from_nanos(1_000_000_202); assert_eq!(ts.nanos(), 1_000_000_202); assert_eq!(ts.seconds(), 1); assert_eq!(ts.subsec_nanos(), 202);\n\nlet ts = ts.plus_seconds(2); assert_eq!(ts.nanos(), 3_000_000_202); assert_eq!(ts.seconds(), 3); assert_eq!(ts.subsec_nanos(), 202); ```",
+      "allOf": [
+        {
+          "$ref": "#/definitions/Uint64"
+        }
+      ]
+    },
+    "Uint128": {
+      "description": "A thin wrapper around u128 that is using strings for JSON encoding/decoding, such that the full u128 range can be used for clients that convert JSON numbers to floats, like JavaScript and jq.\n\n# Examples\n\nUse `from` to create instances of this and `u128` to get the value out:\n\n``` # use cosmwasm_std::Uint128; let a = Uint128::from(123u128); assert_eq!(a.u128(), 123);\n\nlet b = Uint128::from(42u64); assert_eq!(b.u128(), 42);\n\nlet c = Uint128::from(70u32); assert_eq!(c.u128(), 70); ```",
+      "type": "string"
+    },
+    "Uint64": {
+      "description": "A thin wrapper around u64 that is using strings for JSON encoding/decoding, such that the full u64 range can be used for clients that convert JSON numbers to floats, like JavaScript and jq.\n\n# Examples\n\nUse `from` to create instances of this and `u64` to get the value out:\n\n``` # use cosmwasm_std::Uint64; let a = Uint64::from(42u64); assert_eq!(a.u64(), 42);\n\nlet b = Uint64::from(70u32); assert_eq!(b.u64(), 70); ```",
+      "type": "string"
+    }
+  }
+}
diff --git a/smart-contracts/contracts/babylon-vault/src/contract.rs b/smart-contracts/contracts/babylon-vault/src/contract.rs
new file mode 100644
index 000000000..83a0e3b87
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/src/contract.rs
@@ -0,0 +1,40 @@
+use crate::error::VaultError;
+use crate::msg::{ExecuteMsg, InstantiateMsg, QueryMsg};
+#[cfg(not(feature = "library"))]
+use cosmwasm_std::entry_point;
+use cosmwasm_std::{Binary, Deps, DepsMut, Env, MessageInfo, Response};
+use cw2::set_contract_version;
+
+const CONTRACT_NAME: &str = "quasar:babylon-vault";
+const CONTRACT_VERSION: &str = env!("CARGO_PKG_VERSION");
+
+pub type VaultResult<T = Response> = Result<T, VaultError>;
+
+#[cfg_attr(not(feature = "library"), entry_point)]
+pub fn instantiate(
+    deps: DepsMut,
+    _env: Env,
+    _info: MessageInfo,
+    _msg: InstantiateMsg,
+) -> VaultResult {
+    set_contract_version(deps.storage, CONTRACT_NAME, CONTRACT_VERSION)?;
+    Ok(Response::default())
+}
+
+#[cfg_attr(not(feature = "library"), entry_point)]
+pub fn execute(_deps: DepsMut, _env: Env, _info: MessageInfo, _msg: ExecuteMsg) -> VaultResult {
+    Ok(Response::default())
+}
+
+#[cfg_attr(not(feature = "library"), entry_point)]
+pub fn query(_deps: Deps, _env: Env, _msg: QueryMsg) -> VaultResult<Binary> {
+    Ok(Binary::default())
+}
+
+#[cfg(test)]
+mod tests {
+    #[test]
+    fn dummy_test() {
+        assert!(true);
+    }
+}
diff --git a/smart-contracts/contracts/babylon-vault/src/error.rs b/smart-contracts/contracts/babylon-vault/src/error.rs
new file mode 100644
index 000000000..fde081039
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/src/error.rs
@@ -0,0 +1,8 @@
+use cosmwasm_std::StdError;
+use thiserror::Error;
+
+#[derive(Error, Debug, PartialEq)]
+pub enum VaultError {
+    #[error("{0}")]
+    Std(#[from] StdError),
+}
diff --git a/smart-contracts/contracts/babylon-vault/src/lib.rs b/smart-contracts/contracts/babylon-vault/src/lib.rs
new file mode 100644
index 000000000..a0cd84f22
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/src/lib.rs
@@ -0,0 +1,5 @@
+pub mod contract;
+mod error;
+pub mod msg;
+
+pub use crate::error::VaultError;
diff --git a/smart-contracts/contracts/babylon-vault/src/msg.rs b/smart-contracts/contracts/babylon-vault/src/msg.rs
new file mode 100644
index 000000000..72bbb479d
--- /dev/null
+++ b/smart-contracts/contracts/babylon-vault/src/msg.rs
@@ -0,0 +1,32 @@
+use cosmwasm_schema::{cw_serde, QueryResponses};
+use cosmwasm_std::{Timestamp, Uint128};
+
+#[cw_serde]
+pub struct InstantiateMsg {}
+
+#[cw_serde]
+pub enum ExecuteMsg {
+    // permission-less methods
+    Deposit {},
+    Withdraw {},
+    Claim {},
+    // owner methods
+    RegisterLst { denom: String },
+}
+
+#[cw_serde]
+pub struct Claim {
+    pub amount: Uint128,
+    pub expiration: Timestamp,
+}
+
+#[cw_serde]
+#[derive(QueryResponses)]
+pub enum QueryMsg {
+    #[returns(Vec<Claim>)]
+    Pending { address: String },
+    #[returns(Uint128)]
+    Claimable { address: String },
+    #[returns(Uint128)]
+    BalanceInUnderlying {},
+}