Lombard and Eigenlayer integrate Bitcoin into the Eigenlayer restaking ecosystem on Ethereum, creating new profit-making opportunities for BTC holders.
Lombard has just announced an official partnership with Eigenlayer and the Eigen Foundation to integrate Bitcoin into the Eigenlayer restaking ecosystem. This is the first time Bitcoin, through Lombard's LBTC token, has been used as collateral for decentralized finance (DeFi) services on Ethereum.
Through this collaboration, Bitcoin holders can restake their LBTC, earning yields while contributing to the security of Autonomous Verifiable Services (AVSs) such as the Layerzero network and the networks validated by Babylon. Eigenlayer, the leading restaking protocol on Ethereum, will expand its ecosystem to include Bitcoin—a previously primarily value-storage asset.
Dual income opportunities and expanded utility
Lombard's LBTC, a liquid staking token native to Ethereum, allows Bitcoin holders to engage in the DeFi space without sacrificing liquidity. According to Lombard's announcement, this integration opens up dual income opportunities: base yield from Babylon, along with additional profits through restaking on Eigenlayer.
The Eigen Foundation will implement incentive programs for the adoption of LBTC within the Eigenlayer ecosystem, which already includes over 190 AVSs and 80,000 staking addresses. Meanwhile, Lombard and Eigenlayer have stated they are jointly researching slashing risk management to enhance the security of restaked Bitcoin assets.
A Decentralized Validation Node (DVN), developed in collaboration with Layerzero, will also extend utility for Bitcoin by improving cross-chain data sharing capabilities. The announcement emphasizes that this initiative aligns with the modular infrastructure of Eigenlayer, enhancing interoperability between blockchains.
Development teams believe that this collaboration marks a significant turning point: Bitcoin is not merely a value-storage asset but also becomes an active component in decentralized innovation. Lombard and Eigenlayer expect to redefine Bitcoin's role in the continuously evolving blockchain landscape.
