Staking Yield Distribution

Overview

LBTC is a yield-bearing Bitcoin liquid staked token. The BTC underlying LBTC is staked to Babylon’s Bitcoin Staking Protocol. This BTC secures multiple proof-of-stake networks — including BOB, Osmosis, and TAC — which pay for that security in their native governance tokens. These rewards are converted to BTC and reflected in LBTC’s value — meaning holders earn native BTC-denominated yield, passively.

Users could manually claim BABY from Babylon's Airdrop via a "Staking Yield" page in the Lombard WebApp before 22nd July 2025. From this date, all yield is reflected in the LBTC/BTC price.

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.

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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!