LBTC in DeFi

Lombard is dedicated to securing top-tier DeFi integrations to unlock additional yield-generating opportunities for LBTC beyond the underlying Babylon staking yield. Initially targeting Ethereum, where most bitcoin liquidity and leading DeFi protocols are based, Lombard plans to soon expand to Ethereum Layer-2 and prominent Layer-1 networks with thriving DeFi ecosystems.

Lombard ensures the distribution of LBTC across the major and most active DeFi protocols. All whitelisted DeFi integrations are supported with LUX multipliers. An overview of each is provided below. A list of DeFi opportunities and their respective LUX multipliers can be found on Lombard’s DeFi page.

Lombard DeFi Vault

Lombard DeFi Vault: an automated yield management solution that maximizes BTC-denominated returns by allocating WBTC and LBTC deposits across various DeFi opportunities. The vault simplifies DeFi participation by eliminating the need for manual management. It optimizes yields through active rebalancing across platforms like Morpho, Pendle, Uniswap, etc., and automates compounding by converting accrued rewards into additional liquidity.

Liquid Restaking

ether.fi (eBTC): a leading protocol in the liquid restaking space with an outstanding track record in Ethereum-based restaking. Now expanding into the BTC LRT space, ether.fi has entered an exclusive collaboration with Lombard to expand its LRT offering, eBTC. Built on top of Lombard’s LBTC, eBTC is designed to provide ether.fi users with easy onboarding to restaking BTC on restaking platforms such as Symbiotic, and very soon Karak and Eigen Layer.

Yield Trading

Pendle: a more nuanced DeFi protocol focused on enabling users to engage in customizable yield trading strategies, allowing users to both fix or leverage their yield—check out some of their educational info here. Lombard has partnered with Corn and Pendle to make the LBTC CORN POOL. Users can get involved with Pendle by providing liquidity to the pool, engaging in fixed yield exposure, or using Pendle's Yield Tokens to get leveraged exposure to all underlying yield and points for a set period of time.

Lending / Borrowing

Morpho: a permissionless and non-custodial lending protocol where interest is earned on over-collateralized lending, and digital assets can be borrowed using immutable infrastructure. Morpho enables Vault Curators like Re7, Gauntlet, and soon MEV Capital to deploy vaults, utilizing their proprietary risk methodologies.

Gearbox: a modular leverage protocol designed to provide composable leverage, letting users borrow up to 9x the collateral they put up. LBTC, the first Bitcoin LST to be integrated on Gearbox, will be introduced to Gearbox’s ‘Leveraged Points’ product, enabling users to implement automated looping strategies for enhanced yield on LBTC. Gearbox provides users with two services for earning additional Lux.

  • Gearbox leveraging: enables a lend/borrow market for LBTC/WBTC. Users can swap up to 9x WBTC and swap it to create a leveraged LBTC position.

  • Gearbox passive lending: for users supplying WBTC to Gearbox lending pools.

ZeroLend: a lending market on L2s with a focus on liquid restaking tokens (LRTs) lending, governance, real-world assets (RWAs) lending, and account abstraction. By supplying assets on ZeroLend, users can earn a competitive supply APY, along with associated points. You can also borrow ZeroLend's supported assets against deposited collateral. ZeroLend offers two services, earning users additional Lux.

  • Supplying Pendle's LBTC PT Token on ZeroLend:

  • Borrowing LBTC against Pendle's LBTC PT Token:

Restaking

Symbiotic: a shared security and restaking protocol that allows networks to control and adapt their staking implementations in a modular and permissionless manner. It offers capital efficiency by enabling multi-asset, cross-network restaking while minimizing risks through non-upgradable core contracts.

Karak: introduces multiasset restaking, a new primitive in cryptoeconomic security allowing users to provide universal security in exchange for boosted rewards. Multiasset restaking also supercharges security for chains, protocols, and other decentralized infrastructure layers within the Ethereum ecosystem and beyond.

Satlayer: is a restaking platform that enables Bitcoin to provide security to dApps and protocols as a Bitcoin Validated Service (BVS).

Pell: a restaking platform that enables stakers to restake BTC LSDs (Liquid Staking Derivatives) across multiple networks.

Decentralized Exchanges

Uniswap V3: a decentralized exchange that pioneered a concentrated liquidity feature, enabling liquidity providers to allocate capital within specific price ranges, resulting in more efficient capital use and potentially higher returns.

Curve: a decentralized exchange (DEX) optimized for trading stablecoins and low-slippage swaps between highly correlated assets such as LBTC and WBTC. By focusing on stable assets, Curve offers highly efficient trading with reduced fees, making it a popular platform for stablecoin liquidity providers.

Options

Derive: a decentralized options and perpetuals exchange for cryptocurrencies like ETH and BTC. Trading on Derive gives users access to key features such as cross-margin, cross-asset collateral, and portfolio margin.

Points Farm

Corn: Corn markets itself as "The Super Yield Network", an Ethereum Layer 2, with Bitcoin as both gas & yield. As gas, Corn introduces BTCN, a hybrid tokenized Bitcoin, backed by multiple custodians, smart contracts, & bridge protocols.

Early Deposit Programs

Zircuit: a ZK rollup with over 140k+ users and more than $1.7BN staked, designed to prevent malicious transactions and hacks using its Sequencer Level Security SLS. Zircuit staking is a program that vaults assets to help bootstrap native, day-one liquidity to Zircuit.

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