diff --git a/CHANGELOG.md b/CHANGELOG.md
index 81c7cd4..09c91cc 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -37,6 +37,8 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/)
 
 ## Unreleased
 
+## v0.5.0
+
 ### Bug fixes
 
 * [#23](https://github.com/babylonlabs-io/covenant-emulator/pull/23) Fix pre-approval flow
diff --git a/go.mod b/go.mod
index f434303..f1684c9 100644
--- a/go.mod
+++ b/go.mod
@@ -8,7 +8,7 @@ require (
 	cosmossdk.io/errors v1.0.1
 	cosmossdk.io/math v1.3.0
 	github.com/avast/retry-go/v4 v4.5.1
-	github.com/babylonlabs-io/babylon v0.9.3-0.20241015074542-96cdead06442
+	github.com/babylonlabs-io/babylon v0.13.0
 	github.com/btcsuite/btcd v0.24.2
 	github.com/btcsuite/btcd/btcec/v2 v2.3.2
 	github.com/btcsuite/btcd/btcutil v1.1.5
diff --git a/go.sum b/go.sum
index 94af247..f8760f3 100644
--- a/go.sum
+++ b/go.sum
@@ -273,8 +273,8 @@ github.com/aws/aws-sdk-go v1.44.122/go.mod h1:y4AeaBuwd2Lk+GepC1E9v0qOiTws0MIWAX
 github.com/aws/aws-sdk-go v1.44.312 h1:llrElfzeqG/YOLFFKjg1xNpZCFJ2xraIi3PqSuP+95k=
 github.com/aws/aws-sdk-go v1.44.312/go.mod h1:aVsgQcEevwlmQ7qHE9I3h+dtQgpqhFB+i8Phjh7fkwI=
 github.com/aws/aws-sdk-go-v2 v0.18.0/go.mod h1:JWVYvqSMppoMJC0x5wdwiImzgXTI9FuZwxzkQq9wy+g=
-github.com/babylonlabs-io/babylon v0.9.3-0.20241015074542-96cdead06442 h1:m1hUKA+SEaSY64EQd0YkDlL8tjUHGhKiknsdRL+8PnE=
-github.com/babylonlabs-io/babylon v0.9.3-0.20241015074542-96cdead06442/go.mod h1:cxRwVqVLoJ39FpyovTEHJLu1lwwrM1tE8davu7nRHwY=
+github.com/babylonlabs-io/babylon v0.13.0 h1:h7cazmFmItePvZHEbLhDbsq2l7xN4e2AjDHRM7zDLkg=
+github.com/babylonlabs-io/babylon v0.13.0/go.mod h1:cxRwVqVLoJ39FpyovTEHJLu1lwwrM1tE8davu7nRHwY=
 github.com/benbjohnson/clock v1.1.0/go.mod h1:J11/hYXuz8f4ySSvYwY0FKfm+ezbsZBKZxNJlLklBHA=
 github.com/beorn7/perks v0.0.0-20180321164747-3a771d992973/go.mod h1:Dwedo/Wpr24TaqPxmxbtue+5NUziq4I4S80YR8gNf3Q=
 github.com/beorn7/perks v1.0.0/go.mod h1:KWe93zE9D1o94FZ5RNwFwVgaQK1VOXiVxmqh+CedLV8=
diff --git a/tools/go.mod b/tools/go.mod
index fc4d97a..f36d245 100644
--- a/tools/go.mod
+++ b/tools/go.mod
@@ -4,7 +4,7 @@ go 1.21
 
 toolchain go1.21.4
 
-require github.com/babylonlabs-io/babylon v0.9.3-0.20241015074542-96cdead06442
+require github.com/babylonlabs-io/babylon v0.13.0
 
 require (
 	cloud.google.com/go v0.112.0 // indirect
diff --git a/tools/go.sum b/tools/go.sum
index 37f053d..a2fb742 100644
--- a/tools/go.sum
+++ b/tools/go.sum
@@ -268,8 +268,8 @@ github.com/aws/aws-sdk-go v1.44.122/go.mod h1:y4AeaBuwd2Lk+GepC1E9v0qOiTws0MIWAX
 github.com/aws/aws-sdk-go v1.44.312 h1:llrElfzeqG/YOLFFKjg1xNpZCFJ2xraIi3PqSuP+95k=
 github.com/aws/aws-sdk-go v1.44.312/go.mod h1:aVsgQcEevwlmQ7qHE9I3h+dtQgpqhFB+i8Phjh7fkwI=
 github.com/aws/aws-sdk-go-v2 v0.18.0/go.mod h1:JWVYvqSMppoMJC0x5wdwiImzgXTI9FuZwxzkQq9wy+g=
-github.com/babylonlabs-io/babylon v0.9.3-0.20241015074542-96cdead06442 h1:m1hUKA+SEaSY64EQd0YkDlL8tjUHGhKiknsdRL+8PnE=
-github.com/babylonlabs-io/babylon v0.9.3-0.20241015074542-96cdead06442/go.mod h1:cxRwVqVLoJ39FpyovTEHJLu1lwwrM1tE8davu7nRHwY=
+github.com/babylonlabs-io/babylon v0.13.0 h1:h7cazmFmItePvZHEbLhDbsq2l7xN4e2AjDHRM7zDLkg=
+github.com/babylonlabs-io/babylon v0.13.0/go.mod h1:cxRwVqVLoJ39FpyovTEHJLu1lwwrM1tE8davu7nRHwY=
 github.com/benbjohnson/clock v1.1.0/go.mod h1:J11/hYXuz8f4ySSvYwY0FKfm+ezbsZBKZxNJlLklBHA=
 github.com/beorn7/perks v0.0.0-20180321164747-3a771d992973/go.mod h1:Dwedo/Wpr24TaqPxmxbtue+5NUziq4I4S80YR8gNf3Q=
 github.com/beorn7/perks v1.0.0/go.mod h1:KWe93zE9D1o94FZ5RNwFwVgaQK1VOXiVxmqh+CedLV8=