BetterBank Review 2026: PulseChain Lending and Seigniorage Protocol

BetterBank is a decentralised finance protocol on PulseChain that describes itself as combining seigniorage and lending. Users can deposit assets, borrow against collateral and interact with a set of protocol tokens, including the ESTEEM token tracked in market data.

The project announced its app as fully live in August 2025. Posts from its X account said vaults drew more than $2M in 15 minutes and more than $3M in six hours. DefiLlama lists it from 20 August 2025.

A few days later, on or around 27 August 2025, one news write-up reported that the BetterBank contract on PulseChain had been exploited, with about $5M stolen and swapped into roughly 215 ETH. The project's own posts referred to an exploit situation, told holders not to buy the Favor tokens because it would be a loss, and promised updates as it worked to resolve the issue.

Tracked TVL is now $0. The sources reviewed do not say whether users were compensated or whether the protocol has relaunched. The project continued to post about its custom contracts in October 2025.

BetterBank combines two DeFi ideas. The lending side works like a money market: users deposit assets into pools, and borrowers post collateral to take loans. Interest paid by borrowers is the source of yield for depositors.

The seigniorage side uses protocol-issued tokens whose supply is adjusted by the system to try to keep prices near a target. Newer tokens are minted when demand is high and supply is reduced or incentives change when demand falls. Designs like this depend on continuing market demand and have a mixed record across crypto.

All of this is run by smart contracts on PulseChain. That means no company holds user funds in the traditional sense, but it also means a bug in the contracts can put every deposit at risk, as the August 2025 exploit showed.

BetterBank does not publish a fee schedule in the sources reviewed. Interest rates, borrowing costs, protocol fees and any token-related charges would be visible inside the app before a transaction is confirmed.

On PulseChain, users also pay network gas fees in the chain's native token on every transaction. Because the protocol was exploited and its liquidity has largely disappeared, costs matter less than whether funds can be recovered or the protocol relaunched.

The main safety fact is the August 2025 exploit. One news write-up reports about $5M stolen from the BetterBank contract on PulseChain and converted into roughly 215 ETH. The project's own posts confirm an exploit situation. Funds taken in exploits like this are rarely recovered in full.

Two audits are listed, but the auditors and scope are not described, and an audit does not guarantee safety. The team, any insurance or compensation plan, and the current state of the contracts are not published in the sources reviewed. Smart-contract risk, token-design risk and the narrow PulseChain ecosystem all apply. Only deposit what you can afford to lose entirely, and verify everything through the project's official channels, since impersonation and fake apps are common after incidents.

BetterBank suits experienced PulseChain users who understand seigniorage token mechanics and accept the risk of losing everything. It is not a good fit for beginners, anyone looking for stable lending yield, or users who want a proven security record.