📝 Hello everyone, I am 𝟏𝟎, welcome back to the #BlockchainDevelopmentHistory project research series. Today, we will focus on (Lombard).
@Lombard_Finance focuses on Bitcoin liquidity staking, and the logic is not complicated. Let your Bitcoin work, earn money while lying down, and it won’t stop you from holding it.
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1. The gameplay logic of $LBTC
When you stake BTC, the system mints a 1:1 collateralized $LBTC for you. This $LBTC is a shadow clone of your Bitcoin, fully equivalent and redeemable at any time.
Once you obtain $LBTC, you don’t just leave it idle; you can use it to participate in DeFi, such as staking, lending, and re-collateralizing... In other words, while you are over here enjoying a show, $LBTC is already working for you on-chain to earn money.
Compared to traditional locked mining, $LBTC is more like your BTC has come to life. You don’t need to touch the original, it can still do things on-chain.
2. Security mechanisms built at the base layer
This logic is built on the Babylon chain. The focus is not on which chain it is, but on how seriously they take security.
In terms of auditing, we are looking for Halborn and Veridise, both of which are familiar faces in the industry. They have audited major projects like Aptos and Sui, and their professionalism goes without saying.
There is also a bug bounty mechanism, so even if something goes wrong, there are accountability and incentive mechanisms in place, ensuring that no one escapes responsibility. Key management is decentralized and not decided by any particular team.
With so many issues on-chain, only those who can implement security mechanisms from the start truly care about users.
3. On-chain application scenarios of $LBTC
So far, they have already connected with some leading DeFi projects, such as:
1. Sushi: Supports LP mining, you can participate directly.
2. Morpho: A well-established lending protocol that integrated early.
3. Katana: Focused on Bitcoin modular liquidity staking, integrated with Chainlink's price feed system.
Additionally, there are incentive mechanisms for $BTCK and $KAT, moving towards a more complete ecological loop.
$LBTC is not the kind of token you receive but don't know what to do with. It can now be used, participate in mining, and earn rewards. The entire ecosystem is being gradually completed and can truly run.
4. Financing background and Alpha tips
Lombard has already raised $16 million, with investors including Polychain as a key incubator, as well as Binance Labs, OKX Ventures, and support from Franklin Templeton.
Now they are running a points activity and have partnered with Katana for dual mining. There is a high probability of $LBTC airdrops in the future. If you get in now, you might just catch some benefits early.
But don't think it's all free; you still need to think a bit to participate in liquidity and set up good strategies. Purely harvesting rewards is impossible; you still need to do some homework.
Lombard's direction is quite interesting: it's not about switching chains, not bridging, and not creating strange L2s, but using $LBTC to empower Bitcoin right where it is.