DeFi Vault FAQs

What is Lombard’s DeFi Vault?

Lombard’s DeFi Vault is designed to bridge the gap between bitcoin and DeFi, by offering LBTC holders one-click access to DeFi yields without any of the complexities. It accepts LBTC, a liquid staked token representation of Bitcoin, as well WBTC and cbBTC, and seeks to capture the highest risk-adjusted yields derived from multiple DeFi strategies.

How does Lombard’s DeFi Vault work?

After depositing tokens into Lombard’s DeFi Vault, you’ll receive the LP token LBTCv, which entitles you to yield from the DeFi protocols that Lombard’s DeFi Vault uses along with any Lombard Lux, Babylon and Veda points that are earned.

What DeFi protocols does Lombard’s DeFi Vault use?

Lombard’s DeFi Vault aims to offer exposure to the best LBTC DeFi integrations. While the list will evolve over time, Lombard’s DeFi Vault can utilize the following protocols, provided that each has LBTC liquidity: Aave, Aerodrome, Aura, Balancer, Compound, Gearbox, Instadapp Fluid, Morpho Blue, Pendle, and Uniswap.

Will Lombard’s DeFi Vault support more protocols in the future?

Yes, but new protocols will only be added on a case-by-case basis.

What additional rewards are there for depositing in the Lombard DeFi Vault?

Depositors earn multipliers of 4x Lombard Lux, 3x Veda Points, and 1x Babylon Points. Find out more on the Lombard DeFi Vault page.

How frequently is the amount of Lux in the Lombard DeFi Vault udpated?

Lombard Lux are updated hourly in the Vault tab on the Lombard app. You can view Your Vault Lux next to your BTC balance.

Is there any rate differential for users who deposit WBTC or cbBTC instead of LBTC into the DeFi Vault?

Rewards for LBTC, wBTC and cbBTC deposits into the Vault are identical.

How frequently are the Uniswap and Curve pools updated on the dashboard?

Uniswap and Curve pools are updated hourly on the dashboard.

What fees are charged on Lombard’s DeFi Vault?

Users can enjoy fee-free access until 1st December 2024. After this, a competitive 1.5% annual management fee is applied. The pro rata fee is taken periodically (typically once per day) when Lombard’s DeFi Vault rebalances its position. This fee is already reflected in your balance.

When you withdraw, you will enter a withdrawal queue, which requires a small discount ranging from 1 basis point of your LP to compensate the Solver's gas costs for fulfilling your withdrawal.

How long do withdrawals take?

Withdrawals will take up to 3 days in the Withdrawal queue.

What are the accepted deposit assets?

Lombard’s DeFi Vault accepts LBTC, wBTC and cbBTC deposits.

What are Veda points, who is Veda?

Veda points track your participation within the Veda ecosystem. Learn more about Veda points in this blog. Lombard’s DeFi Vault is built using the Veda infrastructure. Veda is a native yield protocol that partners with projects like Lombard to tokenize yields in their DeFi ecosystem and make those yields more accessible to users. Veda already boasts $1 billion in TVL and serves as infrastructure for ether.fi Liquid.

You can learn more about Veda on X https://x.com/veda_labs.

Where can I see my Veda points earned?

The Veda points dashboard is under development but is expected to be available soon. You can learn more about Veda on X https://x.com/veda_labs

Further Questions?

Join the Lombard Discord Server to follow the LBTC community. Here you can ask questions, read answers, share feedback with other users, and much more!