LBTC FAQ
Frequently asked questions about LBTC — Lombard’s yield-bearing Bitcoin token.
Basics
LBTC is a yield-bearing token representing BTC staked on Babylon through Lombard. It features:
- Full BTC backing
- ~0.41% APY (14-day trailing)
- Availability across 15+ chains
- Multi-use functionality (collateral, trading, protocol deposits)
Yes. LBTC maintains identical properties and yield regardless of how you acquired it, whether purchased on a DEX or minted through staking.
Check the current 14-day trailing APY at lombard.finance. Yield varies based on Babylon staking rewards and network conditions.
Staking Process
- Navigate to lombard.finance/app/stake
- Connect destination wallet
- Send BTC to generated address
- Await 6 Bitcoin confirmations (~40-60 minutes)
- LBTC mints automatically
The minimum is approximately 0.0002 BTC, with no maximum limit.
LBTC is yield-bearing, so 1 LBTC is worth more than 1 BTC. You receive the correct BTC-equivalent value.
If you minted on Ethereum, a small amount of LBTC is deducted to cover gas costs. Other chains have no minting fee.
When BTC is deposited to Lombard protocol derived addresses, it is important to make sure UTXOs are not spent if they are related to Ordinals. Users should employ separate wallets or manual UTXO selection to prevent irreversible loss.
Yield Mechanics
- Lombard stakes BTC with Babylon Finality Providers
- Babylon distributes BABY token rewards
- BABY is converted to BTC
- The LBTC/BTC exchange rate increases
No. Yield is reflected in the LBTC/BTC exchange rate automatically.
Yes. As the exchange rate increases, your LBTC is worth more BTC, which continues earning yield.
Unstaking
- Access lombard.finance/app/unstake
- Input LBTC amount
- Provide Bitcoin withdrawal address
- Confirm transaction
- Wait 9 days for BTC arrival
The 9-day period includes: 7 days for Babylon’s unbonding period and 2 days for Lombard’s daily rebalancing cycle.
| Type | Support |
|---|---|
| Native SegWit (bc1q) | Yes |
| Taproot (bc1p) | Yes |
| Legacy (1…) | No |
| Nested SegWit (3…) | No |
0.00013300 LBTC (includes 0.0001 LBTC network security fee).
Fee Structure
| Fee Type | Amount | Application |
|---|---|---|
| Minting | ~0.0001 LBTC | Ethereum only |
| Unstaking | 0.0001 LBTC | All unstakes |
| Protocol | 8% of yield | Reward deduction |
For detailed fee information, see LBTC Fees.
Troubleshooting
Switch address types (Native SegWit or Taproot) within wallet settings.
Check your transaction on a Bitcoin block explorer. If confirmations are complete and LBTC has not minted, check the Activity page to mint manually.