LBTC

LBTC is a yield-bearing Bitcoin asset, combining an institutional off-chain yield strategy with yield denominated in Bitcoin and full composability across DeFi. LBTC targets a 2.5% APY, from off-chain covered-call options, strategy managed by Bitwise Investment Manager, LLC. LBTC is deeply integrated as collateral across DeFi applications on 10 chains, allowing holders to earn yield and access liquidity. LBTC is secured by a multi-institution Security Consortium.

The target yield is 2.5% net APY in BTC terms at full strategy deployment. This is a variable target, not a guarantee: it moves with Bitcoin volatility and with how much of the backing is deployed, and during the deployment ramp it runs below target and builds over time.

What You Get

When you deposit BTC with Lombard, you receive LBTC on your chosen blockchain. Your LBTC:

• Earns BTC-denominated yield automatically (target 2.5% net APY at full deployment, variable and not guaranteed, with losses possible)
• Works across 10 chains including Ethereum, Base, Solana, and Sui
• Can be used as collateral, traded, or deposited into DeFi protocols
• Is redeemable for native BTC (up to a 10-day withdrawal window)

LBTC is non-rebasing: your token balance never changes. Instead, the exchange rate between LBTC and BTC changes as yield accrues and reflects accrued yield. When you redeem, you receive the BTC amount the current exchange rate reflects. For the full mechanics, see Understanding Yield.

Where the Yield Comes From

LBTC earns from a covered-call options strategy run by Bitwise Investment Manager, LLC, the strategy manager. In a covered call, the holder sells another party the right to buy BTC at a fixed strike price by a fixed date in exchange for an upfront premium. Bitwise writes calls against the deployed portion of the backing, and the premiums, in BTC terms, accrue to LBTC through the exchange rate.

The deployed active allocation targets 50-60% of the backing. The rest of the backing sits in a passive allocation that earns nothing and is what funds redemption without having to unwind the options book.

The deployed Bitcoin is held in segregated, Lombard-owned accounts. Bitwise holds discretionary trading authority only, with no authority to withdraw or transfer the assets.

For the strategy manager’s credentials and track record, the risk limits, and the full custody structure, see Yield Strategy.

Collateral That Pays for Itself

Most Bitcoin collateral just sits there. When you post plain wrapped BTC against a loan, it earns nothing while it secures your borrow, so you pay the full interest rate out of pocket. LBTC keeps Bitcoin price exposure and keeps earning its 2.5% BTC-denominated target while it is posted, so the yield offsets part of your borrow cost.

Deposit BTC to Mint LBTC

You can deposit from any Bitcoin wallet, including hardware wallets, DeFi wallets, or exchanges that allow BTC withdrawals.

Before You Start

• You need native BTC in a wallet that can send to SegWit addresses
• Choose which chain you want to receive LBTC on (Ethereum, Base, Solana, etc.)
• Have a wallet address ready on your destination chain

Steps

Note: If you mint on Ethereum, a small amount of LBTC is deducted to cover gas costs. Other chains have no minting fee. See Fees for details.

If Auto-Mint is Disabled

During high gas periods, auto-mint pauses to protect you from fees. You can always mint manually:

1. Go to lombard.finance/app/activity 
2. Find your pending deposit
3. Click Mint and confirm the transaction

Minimum Deposit

Each deposit must meet the minimum threshold displayed in the app. The minimum is approximately 0.0002 BTC, but check the app for the current threshold. Deposits below this amount are not processed.

Redeem BTC

You can redeem your BTC at any time. The process takes up to 10 days due to Lombard’s redemption and rebalancing cycle. Withdrawals are funded from the passive allocation, so redemptions do not normally require unwinding the deployed positions.

Before You Start

• You need LBTC on any supported chain
• Have a Bitcoin address ready (Native SegWit or Taproot only)

Supported Bitcoin Addresses

Steps

1. Go to lombard.finance/app/unstake 
2. Verify the correct network is selected (top right)
3. Enter the amount of LBTC to redeem
4. Enter your Bitcoin withdrawal address
5. Confirm the transaction
6. Wait up to 10 days for BTC to arrive

Minimum Redemption

The minimum redemption amount is 0.00013300 LBTC (includes the 0.0001 LBTC network security fee).

Can I Speed This Up?

No. The withdrawal window is how the protocol keeps redemptions orderly. Withdrawals are funded from the passive allocation first; if a request is large enough to reach the active allocation, the 10-day window is what lets those positions be unwound without fire-sale conditions. The design has no separate “stressed” timeline and no gate or pause mechanism. For a faster exit, you can sell LBTC on secondary markets at the prevailing price.

Risks

Strategy Risk

This risk applies to LBTC only. BTC.b has no yield strategy.

The active allocation (maximum 60% of backing) can see temporary mark-to-market losses during sharp Bitcoin rallies, and income compresses when Bitcoin volatility is low, an income risk rather than a capital-loss risk. The strategy uses no leverage and no puts, all options are financially settled, and the Bitcoin sits in segregated, Lombard-owned custody accounts. Bitwise holds trading authority only and cannot withdraw or transfer assets. The passive allocation is isolated from the strategy entirely and is always available for redemptions.

Depeg Risk

LBTC trades on secondary markets where prices can deviate from the redemption value. During the redemption window (up to 10 days), you cannot exit instantly. However, you can always redeem at the protocol rate through the Lombard app.

Technical Risk

Smart contract bugs or network attacks could affect funds. Lombard has been audited by OpenZeppelin, Veridise, and others. Real-time threat monitoring is active. See Risks for the full risk framework.

Note: The yield strategy, including direct mint and redemption, is not available to US or UK persons or to other restricted jurisdictions. See the Terms of Service and yield disclosure for the restricted-jurisdiction list before using it.

Frequently Asked Questions

Next Steps

• Understanding Yield, how LBTC yield works, exchange rates, and APY details
• Strategy, the covered-call strategy, its risk limits, and custody structure
• Fees, complete breakdown of minting, redemption, and protocol fees
• Access DeFi, deploy your LBTC in DeFi protocols for additional yield
• Bitcoin Earn, a simple way to put BTC to work across strategies