Staking Yield Distribution

Overview

LBTC (Liquid Bitcoin) is a yield-accruing liquid staked token. The underlying BTC, backing LBTC, is staked via Babylon, securing the Babylon Genesis chain and to eventually secure other Bitcoin Secured/Supercharged Networks (BSNs) as they become live. Rewards earned in different network tokens, e.g. BABY, are sold for additional BTC, thus increasing the value of LBTC against BTC.

How It Works

The mechanism works as follows:

  • Staking rewards accrue in different tokens to Lombard Protocol

  • Lombard Protocol passively sells these rewards using the most liquid markets available

  • The supply of BTC grows

  • There is now more BTC than LBTC in circulation, hence a reserve ratio is periodically increased. This is the rate at which LBTC can be minted and redeemed.

For holders, it’s seamless:

  • You deposit BTC and receive LBTC.

  • Over time, that LBTC grows in BTC terms, automatically.

  • There are no additional steps, claims, or conversions.

  • Your BTC stays liquid, composable, and cross-chain.


Roadmap

April 2025: Babylon's Airdrop for Phase-2

  • BABY was claimable via the Lombard dApp until 22nd July 2025.

  • Any unclaimed BABY has been redistributed to current LBTC holders after this date.

  • Slashing risk of 0.1% was introduced into the Babylon protocol.

July 2025: LBTC's Yield-accruing Transition

  • LBTC is no longer 1:1 with BTC, given yield accrual.

  • Additional BABY earned from staking between Babylon's TGE in April to the 22nd July 2025 is distributed to LBTC holders over a defined period.

  • No user action required!

October 2025: Babylon's Second Airdrop

  • Any BABY rewarded to Lombard Protocol as part of an additional 200M BABY airdrop will be distributed as yield to LBTC holders over a defined period.

  • No user action required!

Q4 2025: Babylon's Phase-3

  • Bitcoin staking will now secure additional networks - not only Babylon Genesis. This leads to potential increased yield opportunities.

  • No user action required!

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