General FAQ

Lombard builds assets and infrastructure to bring Bitcoin to life onchain. Founded in April 2024, the protocol has onboarded over $3 billion in BTC across 10 blockchains and 50+ DeFi integrations.

Lombard’s core products:

• 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.
• BTC.b: 1:1 Bitcoin representation (no yield, simpler).
• $BARD: Governance and utility token.
• Bitcoin Smart Accounts (BSA): Institutional rail that lets custodied Bitcoin be used in DeFi without leaving custody.
• Bitcoin Connect: Developer toolkit for integrating Bitcoin minting, redemption, and cross-chain operations.
• Bitcoin Earn: Yield-generating vault strategies for depositing Bitcoin assets across chains.

Lombard Lux: Points earned through active DeFi deployment of LBTC and BTC.b across eligible protocols.

In Season 3, Lux was not earned by holding LBTC or BTC.b passively. Users must deploy assets into whitelisted lending markets, liquidity pools, or vault products to accrue Lux.

Three multiplier tiers apply: DEX Liquidity at 1x, Lending Collateral at 3x, and Lombard Strategies at 6x.

Eligible chains include Ethereum, Solana, Avalanche, MegaETH, and Base.

See the Lux Rewards page for full details.

Lombard raised $16 million in seed funding (July 2024) led by Polychain Capital, with participation from Franklin Templeton, dao5, OKX Ventures, HTX Ventures, Foresight Ventures, Mirana Ventures, Mantle EcoFund, Nomad Capital and Robot Ventures. The round invited strategic partnerships with Bitget, Bybit, OKX, HTX, and Binance.

In September 2025, the $BARD Community Sale hosted by Buidlpad raised $6.75 million from 21,340 participants across 132 countries. It was oversubscribed by 1,400%.

Lombard uses multiple security layers:

Lombard has completed 10 third-party audits with six leading security firms:

• OpenZeppelin
• Halborn
• Veridise
• Sherlock
• ABDK
• Cantina

All audit reports are published on GitHub and in the documentation.

See Audits Documentation.

Yes. Lombard partners with Immunefi for bug bounties up to $250,000. White hat hackers can report vulnerabilities and receive rewards for valid findings.

See Immunefi Bug Bounty Program.

The Security Consortium is a group of 14 independent organizations that validate and sign critical operations:

• BTC deposits and redemptions
• Minting, burning, and bridging LBTC
• Cross-chain transfers

Members include OKX, Galaxy, DCG, Wintermute, Amber Group, Figment, P2P, Kiln, Kraken, Antpool, and F2Pool.

No single member can act unilaterally. Operations require signatures from 2/3 of members.

Strategy Risk (LBTC only), LBTC’s yield comes from a covered-call options strategy managed by Bitwise Investment Manager, LLC. The active allocation (maximum 60% of backing) can see temporary mark-to-market drawdowns during sharp Bitcoin rallies, and yield falls below target when volatility is low. The strategy uses no leverage, options are financially settled, and Bitcoin never leaves Lombard’s segregated custody accounts. BTC.b has no yield strategy.

Depeg Risk, LBTC and BTC.b trade on secondary markets where prices can deviate from redemption value. During redemption periods (up to 10 days), you cannot exit instantly. You can always redeem at the protocol rate through the Lombard app.

Technical Risk, Smart contract bugs or network attacks could affect funds. Lombard continuously audits contracts and maintains real-time threat monitoring.

LBTC’s yield comes from a covered-call options strategy managed by Bitwise Investment Manager, LLC. Bitwise sells call options against a portion of the Bitcoin backing LBTC; option buyers pay premiums upfront, and those premiums, denominated in BTC, accrue to holders through the LBTC exchange rate.

This is real market income, not token emissions: the premiums exist because counterparties pay for optionality on Bitcoin’s price. LBTC targets 2.5% net APY in BTC terms at full deployment, retains full Bitcoin price exposure, and uses no leverage and no puts. Yield is variable and not guaranteed.

Bitwise Investment Manager, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission and is registered with the Commodity Futures Trading Commission as a commodity pool operator and commodity trading advisor. Bitwise Investment Manager, LLC is a wholly owned subsidiary of Bitwise Asset Management, Inc. (“Bitwise”), a global crypto asset manager with more than $9 billion in client assets. Since 2017, Bitwise has established a track record of excellence helping investors understand and access the opportunities in crypto. Bitwise manages a suite of over 70 investment products in the U.S. and Europe, spanning ETPs, index funds, alpha and SMA strategies, and staking solutions. The Bitwise team of over 175 technology and investment professionals is backed by leading institutional investors and has offices in San Francisco, New York, and London.

LBTC’s yield originally came from Babylon staking, where rewards were paid in token emissions. In 2026, Lombard transitioned LBTC’s yield source to the Bitwise-managed covered-call strategy, real market income built to be sustainable at scale.

Nothing else changed: the token contract, mint and redeem logic, DeFi integrations, and the 10-day redemption window are all the same, balances carried through unchanged, and no holder action was required. Yield accrued under the previous model was preserved.

The deposit address is deterministically generated from your destination chain and wallet address. You can verify it:

1. In-browser via the Lombard SDK or WebApp
2. Using the open-source verifier: github.com/lombard-finance/ts-verifier

• Discord: discord.com/invite/2HG7G69twc (fastest)
• Website widget: lombard.finance (bottom right)