1.1 Why Use BTC.b.

True Bitcoin Ownership Without Compromise

When you hold BTC.b, you maintain genuine exposure to Bitcoin while gaining the ability to participate in DeFi. Each token represents exactly one Bitcoin, with no rehypothecation, no lending of reserves, and no fractional backing. The protocol's transparent architecture allows anyone to verify the 1:1 backing at any time through onchain Proof of Reserve feeds.

This commitment to full backing extends beyond simple reserve management. The protocol implements strict controls that make it impossible to mint BTC.b without corresponding Bitcoin deposits. Every minting transaction must be validated by multiple independent systems, each verifying that the Bitcoin deposit has occurred and has received sufficient confirmations. This multi-layer validation ensures that the 1:1 backing ratio is maintained not just as a policy, but as a cryptographic guarantee enforced by the protocol itself.

The reserves backing BTC.b are held in a distributed custody model that prevents any single entity from having unilateral control. The Bitcoin remains in addresses controlled by the security consortium through the HSM infrastructure, with spending requiring consensus among validators. This structure provides the security of institutional custody without the counterparty risk of trusting a single custodian.

Permissionless and Accessible

Anyone can mint BTC.b directly from native Bitcoin without intermediaries, KYC requirements, or geographic restrictions (except sanctioned jurisdictions). The process is straightforward: deposit BTC to a deterministic address that encodes your destination wallet, and receive BTC.b after multi-layer validation confirms your deposit. No applications to fill out, no waiting periods for approval, no arbitrary limits based on your jurisdiction.

This permissionless nature extends to redemptions as well. BTC.b can be burned to retrieve native Bitcoin at any time, with the same transparent validation process ensuring secure withdrawals. You maintain complete sovereignty over your Bitcoin while gaining access to the entire DeFi ecosystem. The redemption process includes built-in safety mechanisms to prevent errors and protect users, such as address validation and confirmation requirements, while still maintaining the permissionless ethos that makes DeFi powerful.

The protocol doesn't discriminate based on the size of your holdings. Whether you're minting 0.001 BTC or 100 BTC, the process remains the same, the fees remain proportional, and your access remains equal. This democratic approach to Bitcoin infrastructure ensures that DeFi remains accessible to everyone, not just institutions or high-net-worth individuals.

Deep Liquidity and Proven Integrations

With years of operation and ~$550M in circulation, BTC.b under the operations of Ava Labs has established itself as a cornerstone of DeFi infrastructure: Aave: One of the primary collateral assets with extensive borrowing markets

BENQI: Core liquidity provision and lending markets on Avalanche

LFJ: Strategic integrations for advanced DeFi strategies

DEXs: Deep liquidity pools across Uniswap, TraderJoe, and other major exchanges

Now, operated by the Lombard Protocol, BTC.b will expand across chains and DeFi protocols.

Cost-Effective Bitcoin Deployment

BTC.b operates without any protocol fees for holding or transferring between wallets.Standard network gas fees apply for onchain transactions, and a minimal mint and redeem fee is charged to cover Bitcoin network and operational costs (see Page 7. Fees & Economics to learn more). You only pay standard network gas fees for transactions, making it one of the most cost-effective ways to use Bitcoin in DeFi. There are no management fees, no performance fees, and no hidden costs eating into your Bitcoin holdings over time.

Institutional Security, Individual Freedom

While BTC.b benefits from institutional-grade security through its consortium of validators and HSM-backed key management, it doesn't require institutional participation. Individual users have the same access and rights as the largest institutions, embodying the true spirit of DeFi—equal access to financial infrastructure regardless of size or status.