Lombard's DeFi Vault
Lombard DeFi Vault is an automated yield management solution designed to maximize BTC-denominated returns by strategically allocating deposits across various opportunities within the DeFi ecosystem. The vault designed to bridge the gap between bitcoin and DeFi, offering enhanced yields through a seamless experience and eliminating the need for manual management of positions. Participating in DeFi can be complex, often requiring technical knowledge to select strategies and manage positions. The DeFi Vault simplifies this process by leveraging Veda’s expertise in tokenizing DeFi yields. The vault accepts both WBTC and LBTC, offering users access to a variety of DeFi strategies including Aave, Pendle, Uniswap, and others.
The vault is developed in collaboration between Lombard and Veda. Veda is a native yield protocol that tokenizes yields, making them more accessible to users. With over $1 billion in TVL, Veda serves as a core infrastructure partner for ether.fi.
How It Works
After depositing LBTC or WBTC into the Lombard DeFi Vault, users receive a receipt token called LBTCv. LBTCv represents the user’s share of the vault’s balance, including both the principal value and accumulated yield after fees.
The vault engages into DeFi strategies and optimizes yields through active rebalancing. These strategies include providing liquidity on DEX platforms like Uniswap (tight price ranges) and Curve, lending through platforms such as Gearbox and Morpho, and engaging in yield trading on protocols like Pendle.
Additionally, the Lombard DeFi Vault automates compounding by efficiently converting all accrued DeFi rewards back into additional liquidity for the vault. These rewards get distributed proportionally amongst LBTCv holders; when a user withdraws from the vault, any accrued value in the vault's total liquidity will be returned proportionally to their respective stake in vault's total pooled liquidity.
By leveraging multiple DeFi strategies, the vault ensures that yields are diversified across various sources, reducing reliance on any single strategy. This diversification helps mitigate risks while enhancing potential returns.
The Lombard DeFi Vault can be accessed via the Lombard WebApp. For detailed instructions on how to deposit funds, you can also follow the step-by-step guide provided in the Depositing in the Lombard DeFi Vault doc.
Details:
Yield: DeFi yields are automatically converted into LBTC and accumulate directly within the Lombard DeFi Vault, allowing users to benefit from continuous growth.
Fees: Enjoy fee-free access until the 1st October 2024. After that, a competitive 1.5% annual management fee is applied. The pro rata fee is deducted periodically (typically once per day) when Lombard’s DeFi Vault rebalances its position. This fee is reflected in your balance, ensuring transparency and clarity in your returns.
Withdrawals: Withdrawals can be initiated anytime, with LBTC redeemable within 3 days.
Additional Rewards: Depositors earn 4x Lombard Lux, 3x Veda Points, and 1x Babylon Points.
Risks Disclaimer
Lombard DeFi Vault is composed of a diverse range of DeFi products, each carrying inherent smart contract risks and varying levels of economic risk. Users should be aware that these risks can impact both the principal and yield. It is essential to carefully assess the risk tolerance before participating in the vault.
Audits & Code:
Vault Contract: 0x5401b8620E5FB570064CA9114fd1e135fd77D57c
Teller Contract: 0x5b80795D6B82e1a0966b8C73ACDe1B6F8be566C9
Accountant Contract: 0xcB762D7bedfA78c725f2F347220d41062b6B0A4A
Manager: 0xeBC7d8B1796eE587c2E91473c0b07A34a1a61E70
Withdrawal Queue: 0x3b4aCd8879fb60586cCd74bC2F831A4C5E7DbBf8
Legal Note
The Lombard Protocol restricts access to users in certain jurisdictions, including the United States. For a full list of restricted parties, please visit our Terms of Service.
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