Borrow/Lend

LBTC provides an underlying yield from staking BTC within Babylon, making it a yield-bearing asset.

LBTC is an ideal collateral asset for underutilized cbBTC and WBTC, with consistently high demand for leveraged LBTC exposure in lending markets, where utilization rates often reach capacity. This opens opportunities for Bitcoin lenders on borrow/lend protocols to achieve sustainable yields, addressing a gap in DeFi where BTC lending yields historically remain below 1% APY.

Additionally, LBTC is the most significant player on Pendle, dominating the yield market through LBTC or eBTC; leveraging PT tokens against LBTC offers a unique opportunity to capitalize on BTC's fixed yield.

Maple: a top digital asset lending platform that allows institutional LBTC holders to secure fixed rates via short-term USDC loans against their LBTC holdings.

  • Links: Request to borrow here.

Morpho: a non-custodial lending protocol for earning interest on over-collateralized loans and borrowing digital assets. Vault Curators like Re7, Gauntlet, and MEV Capital offer exposure to LBTC markets using proprietary risk methodologies.

Rewards: 2x Lombard Lux for WBTC & cbBTC lending, and 3x Lux for WBTC and cbBTC borrowing.

Gearbox: a modular leverage protocol that offers up to 9x leverage on collateral. With LBTC as the first Bitcoin LST integrated, users can access Gearbox's 'Leveraged Points' product to execute automated looping strategies for higher LBTC yields and earn 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.

    • Link: Gearbox Leveraged LBTC

    • Rewards: Users leveraging LBTC on Gearbox will earn 3x Lombard Lux, 1x Babylon Points.

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

    • Link: Gearbox WBTC V3 Pool

    • Rewards: Users lending WBTC on Gearbox will earn 2x Lombard Lux, 1x Babylon Points.

ZeroLend: a lending market focusing on liquid restaking tokens (LRTs), governance, and RWAs. Users can earn competitive APY and points by supplying assets or borrowing against collateral.

  • Supplying Pendle's LBTC PT Token on ZeroLend:

  • Borrowing LBTC against Pendle's LBTC PT Token:

Euler: a modular lending platform featuring the Euler Vault Kit (EVK) for deploying custom lending vaults and the Ethereum Vault Connector (EVC) for using vaults as collateral. Together, they enable flexible lending solutions within the Euler ecosystem.

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