General FAQ

Questions about Lombard, security, and the protocol.


About Lombard

What is Lombard?

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 15+ blockchains and 100+ DeFi integrations.

Lombard's core products:

  • LBTC — Yield-bearing Bitcoin (liquid staking token).

  • BTC.b — 1:1 Bitcoin representation (no yield, simpler).

  • $BARD — Governance and utility token.

  • Bitcoin Connect — Developer toolkit for integrating Bitcoin staking and cross-chain operations.

  • DeFi Vaults — Yield-generating protocols for depositing Bitcoin assets across chains.

Who is behind Lombard?

The founding team includes DeFi experts from Polychain, Babylon, Argent, Coinbase, and Maple, all with experience starting and scaling companies in the DeFi space.

Who backs Lombard?

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—oversubscribed by 1,400%.


Security

Why is my BTC safe with Lombard?

Lombard uses multiple security layers:

Layer
Purpose

Security Consortium

14 independent institutions validate all operations

CubeSigner (HSM)

Keys stored in hardware, never exposed during signing

Bascule Drawbridge

Secondary verification for all mints

Multi-party approval

Multiple parties must sign every transaction

Timelocks

Delays on sensitive operations

24/7 monitoring

Real-time threat detection and response

What audits has Lombard completed?

Lombard maintains a long-term auditing program with leading security firms:

  • OpenZeppelin

  • Veridise

  • Halborn

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

Audits Documentation

Is there a bug bounty program?

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

Immunefi Bug Bounty Program

What is the Security Consortium?

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

  • Staking and unstaking BTC into Babylon

  • 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 ⅔ of members.


Risks

What risks should I be aware of?

Slashing Risk (LBTC only) If Finality Providers misbehave on Babylon, staked BTC can be slashed. Lombard works only with reputable validators. BTC.b is not staked through Babylon. Current exposure is 0.1%.

Depeg Risk LBTC and BTC.b trade on secondary markets where prices can deviate from redemption value. During unstaking periods (7-9 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.


Babylon

What is Babylon?

Babylon is a shared security protocol that uses Bitcoin to secure Proof-of-Stake networks. It enables BTC holders to stake and earn yield without giving up custody.

Babylon allows systems like PoS chains, L2s, data availability layers, and oracles to gain security from Bitcoin—the largest decentralized crypto asset.

How does Lombard work with Babylon?

  1. You stake BTC into your unique deposit address on Lombard

  2. Lombard stakes into Babylon through Finality Providers

  3. Babylon generates rewards for securing PoS networks

  4. You receive LBTC representing your staked position

Lombard provides liquidity (LBTC) while Babylon handles the staking mechanics.

Why stake through Lombard instead of directly with Babylon?

Staking directly with Babylon locks your BTC—you cannot use it elsewhere. LBTC keeps your Bitcoin liquid while earning the same Babylon staking rewards.

With LBTC you can:

  • Earn yield AND use your Bitcoin in DeFi

  • Trade or transfer your position anytime

  • Access 15+ chains without bridging native BTC


Protocol Details

How can I verify my deposit address belongs to Lombard?

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


Where can I get support?

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