In a groundbreaking move that bridges the gap between Bitcoin and Ethereum, EigenLayer has announced a strategic partnership with Lombard Finance, introducing Bitcoin restaking through LBTC, Lombard’s liquid-staked Bitcoin token.
This marks a pivotal expansion for EigenLayer’s Ethereum-based restaking ecosystem and a monumental leap for Bitcoin holders looking to unlock new earning potential within the DeFi space.
What’s the Buzz About LBTC?
The newly introduced LBTC is a tokenized representation of staked BTC. When users stake their Bitcoin through Lombard Finance, they receive LBTC—an ERC-20 token that can now be restaked on EigenLayer, enabling users to earn dual-layered rewards:
Base yield from Bitcoin staking (powered by Babylon protocol)
Restaking rewards through EigenLayer’s ecosystem
This combination not only amplifies capital efficiency but also incentivizes Bitcoin holders to participate in Ethereum-based protocols—without selling their BTC.
"This is the first time Bitcoin is being introduced into Ethereum restaking—merging security and yield opportunities across the two largest blockchains," stated EigenLayer in their official announcement.
→ Source: EigenLayer on X
Why This Partnership Matters
With this collaboration, EigenLayer expands beyond Ethereum-native assets, while Lombard Finance opens up a trusted pathway for Bitcoin to enter smart contract ecosystems.
Key benefits include:
Seamless BTC integration into DeFi protocols
Enhanced security through EigenLayer’s slashing and validation framework
Greater cross-chain composability and interoperability
The move sets a precedent for layer-1 collaboration, providing a blueprint for how flagship blockchain ecosystems can synergize.
"This integration is a step toward unlocking true multi-chain utility for Bitcoin and making BTC a first-class citizen in the broader Web3 ecosystem," noted Lombard Finance.
→ Source: AInvest
What’s Next?
Both teams have committed to further developing secure restaking mechanisms and refining slashing conditions to protect user assets. More integrations, UI enhancements, and DeFi application support are expected in upcoming phases.
As the DeFi world watches closely, this partnership could usher in a new era of crypto liquidity, where Bitcoin finally breaks free of its “digital gold” label and becomes an active player in decentralized finance.
Are You Ready to Restake Your Bitcoin?
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