# LBTC FAQ Questions about staking BTC, minting LBTC, yield, and unstaking. *** ### Basics #### What is LBTC? LBTC is a yield-bearing token representing BTC staked on Babylon through Lombard. It allows you to earn staking rewards while keeping your Bitcoin liquid for DeFi. * Fully backed by native BTC * Earns \~0.41% APY (14-day trailing) * Available on 15+ chains * Can be used as collateral, traded, or deposited into protocols #### Is LBTC different if I buy it vs stake for it? No. LBTC is perfectly fungible regardless of how you acquired it. Buying LBTC on a DEX gives you the same yield and functionality as minting it by staking BTC. #### What is the current APY? Check the current 14-day trailing APY at [lombard.finance](https://www.lombard.finance/). Yield varies based on Babylon staking rewards and network conditions. *** ### Staking #### How do I stake BTC? 1. Go to [lombard.finance/app/stake](https://www.lombard.finance/app/stake/) 2. Connect your destination wallet 3. Send BTC to the generated deposit address 4. Wait for 6 Bitcoin confirmations (\~40-60 minutes) 5. LBTC mints automatically to your wallet See Use LBTC for the full guide. See [Use LBTC](https://docs.lombard.finance/use/use-lbtc) for the full guide. #### What is the minimum deposit? The minimum is approximately 0.0002 BTC, but check the app for the current threshold. There is no maximum deposit size. #### Why did I receive less LBTC than the BTC I deposited? Two possible reasons: 1. **Ethereum minting fee** — If you minted on Ethereum, a small amount of LBTC is deducted to cover gas costs. Other chains have no minting fee. 2. **Exchange rate** — LBTC is yield-bearing, so 1 LBTC is worth more than 1 BTC. You receive slightly less LBTC, but it represents the same BTC value. #### Why is my LBTC taking so long to mint? After your BTC deposit is detected, the Security Consortium waits for 6 Bitcoin confirmations before minting. This typically takes 40-60 minutes but can be longer during network congestion. #### What 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](https://www.lombard.finance/app/activity/) 2. Find your pending deposit 3. Click **Mint** and confirm #### What is the "Authorize Network Fee" message? On Ethereum, your wallet prompts you to sign this message to authorize Lombard to deduct a small LBTC fee for minting gas costs. This only appears for Ethereum mints. #### Will I lose my Ordinals or Runes (or other inscriptions)? When BTC is deposited to Lombard protocol derived addresses, it's important to make sure UTXOs are not spent if they are related to Ordinals (or other non-BTC assets). Any UTXOs spent into the protocol are irrecoverable. The safest approach is to not select these specific UTXOs in your wallet - i.e. by using a different wallet address for these activities (or manually selecting correct UTXOs in your wallet). Some wallets may warn you if you are at risk of spending inscribed UTXOs, however many do not. #### Will I lose my Ordinals or Runes (or other inscriptions)? 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 or other non-BTC assets. Any UTXOs spent into the protocol are irrecoverable. The safest approach is to avoid selecting these specific UTXOs in your wallet. Use a different wallet address for these activities, or manually select the correct UTXOs in your wallet. Some wallets warn you if you are at risk of spending inscribed UTXOs. Many do not. *** ### Yield #### How does LBTC yield work? 1. Lombard stakes your BTC with Finality Providers on Babylon 2. Babylon rewards stakers in BABY tokens 3. Lombard sells BABY for BTC 4. The LBTC/BTC exchange rate increases Your LBTC automatically represents more BTC over time. No claiming required. #### Do I need to claim yield? No. Yield is reflected in the LBTC/BTC exchange rate automatically. Your existing LBTC becomes redeemable for more BTC as yield accrues. #### Does yield compound? Yes. As the exchange rate increases, your LBTC is worth more BTC, which continues earning yield. #### What happened to BABY claiming? Before July 22, 2025, users claimed BABY manually. After this date, LBTC became yield-bearing and all yield auto-compounds. Any unclaimed BABY was redistributed to LBTC holders. *** ### Unstaking #### How do I unstake LBTC? 1. Go to [lombard.finance/app/unstake](https://www.lombard.finance/app/unstake/) 2. Enter the amount of LBTC to unstake 3. Provide your Bitcoin withdrawal address 4. Confirm the transaction 5. Wait 9 days for BTC to arrive #### Why does unstaking take 9 days? The 9-day period includes: * **7 days** — Babylon's unbonding period * **2 days** — Lombard's daily rebalancing cycle This is a security requirement. Your staked BTC secures PoS networks during this time. #### Can I speed up unstaking? No. The 9-day period cannot be shortened. If you need faster liquidity, you can sell LBTC on a DEX (subject to market prices). #### What Bitcoin addresses are supported for unstaking? | Prefix | Type | Supported | | ------ | ------------- | --------- | | `bc1q` | Native SegWit | Yes | | `bc1p` | Taproot | Yes | | `1...` | Legacy | No | | `3...` | Nested SegWit | No | #### What is the minimum unstake amount? 0.00013300 LBTC (includes the 0.0001 LBTC network security fee). *** ### Fees #### What fees apply to LBTC? | Fee | Amount | When | | ------------- | ------------- | --------------------- | | Minting fee | \~0.0001 LBTC | Ethereum only | | Unstaking fee | 0.0001 LBTC | All unstakes | | Protocol fee | 8% of yield | Deducted from rewards | See Fees for details. #### Why is there a minting fee on Ethereum but not other chains? Ethereum gas costs are significantly higher. On other chains, the cost is low enough for Lombard to absorb. *** ### Troubleshooting #### My balance shows zero in the staking UI If you use OKX Wallet, your BTC may be on a different address type: 1. In OKX Wallet, select your BTC asset 2. Switch to the address type with your balance (Native SegWit or Taproot) 3. Refresh the Lombard page #### I sent BTC but nothing happened Your deposit needs 6 Bitcoin confirmations (\~40-60 minutes). Check your transaction on a Bitcoin block explorer. If confirmations are complete and LBTC hasn't minted, check the [Activity page](https://www.lombard.finance/app/activity/) to mint manually. #### My LBTC didn't auto-mint Auto-mint may be disabled during high gas periods. Go to [lombard.finance/app/activity](https://www.lombard.finance/app/activity/) and mint manually. *** #### Where can I get support? * **Discord** — [discord.com/invite/2HG7G69twc](https://discord.com/invite/2HG7G69twc) (fastest) * **Website widget** — [lombard.finance](https://www.lombard.finance/) (bottom right) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.lombard.finance/use/faq/lbtc-faq.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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