Use LBTC

Earn yield on your Bitcoin while keeping it liquid for DeFi. LBTC is a yield-bearing token that represents BTC staked through Babylon, you hold LBTC, and its value in BTC grows automatically over time.

What You Get

When you stake BTC with Lombard, you receive LBTC on your chosen blockchain. Your LBTC:

  • Earns Babylon staking yield automatically

  • Works across 15+ chains including Ethereum, Base, Arbitrum, Solana, and Sui

  • Can be used as collateral, traded, or deposited into DeFi protocols

  • Is redeemable for native BTC at any time (9-day withdrawal period)

The exchange rate between LBTC and BTC increases as yield accrues. When you unstake, you receive more BTC than you originally deposited.


Stake BTC

You can stake from any Bitcoin wallet—hardware wallets, DeFi wallets, or exchanges that allow BTC withdrawals.

Before You Start

  • You need native BTC in a wallet that can send to SegWit addresses

  • Choose which chain you want to receive LBTC on (Ethereum, Base, Arbitrum, etc.)

  • Have a wallet address ready on your destination chain

Steps

  1. Connect your destination wallet (top right shows the chain and address where you will receive LBTC)

  2. Select Get LBTC on [chain] or connect a Bitcoin wallet directly

  3. Lombard generates a unique deposit address tied to your destination

  4. Send BTC to that address

  5. Wait for 6 Bitcoin confirmations (typically 40–60 minutes)

  6. LBTC mints automatically to your destination address

Note: If you mint on Ethereum, a small amount of LBTC is deducted to cover gas costs. Other chains have no minting fee. See Fees for details.

If Auto-Mint is Disabled

During high gas periods, auto-mint pauses to protect you from fees. You can always mint manually:

  1. Find your pending deposit

  2. Click Mint and confirm the transaction

Minimum Deposit

Each deposit must meet the minimum threshold displayed in the app. Deposits below this amount are not processed.


Unstake LBTC

You can withdraw your BTC at any time. The process takes 9 days due to Babylon's 7-day unbonding period plus Lombard's daily rebalancing cycle.

Before You Start

  • You need LBTC on any supported chain

  • Have a Bitcoin address ready (Native SegWit or Taproot only)

Supported Bitcoin Addresses

Prefix
Type
Supported

bc1q

Native SegWit (P2WPKH, P2WSH)

Yes

bc1p

Taproot (P2TR)

Yes

1...

Legacy (P2PKH)

No

3...

Nested SegWit (P2SH)

No

Steps

  1. Verify the correct network is selected (top right)

  2. Enter the amount of LBTC to unstake

  3. Enter your Bitcoin withdrawal address

  4. Confirm the transaction

  5. Wait 9 days for BTC to arrive

Minimum Unstake

The minimum unstake amount is 0.00013300 LBTC (includes the 0.0001 LBTC network security fee).

Can I Speed This Up?

No. The 9-day period is a security requirement from Babylon's staking protocol. Your staked BTC secures the network during this time.


Risks

Slashing Risk

This risk applies to LBTC only. BTC.b is not staked through Babylon.

If validators misbehave, a portion of staked BTC can be slashed. Lombard works only with reputable Finality Providers who implement anti-slashing measures. Current slashing risk exposure is 0.1%.

Depeg Risk

LBTC trades on secondary markets where prices can deviate from the redemption value. During the 9-day unstaking period, you cannot exit instantly. However, you can always redeem at the protocol rate through the Lombard app.

Technical Risk

Smart contract bugs or network attacks could affect funds. Lombard has been audited by OpenZeppelin, Veridise, and others. Real-time threat monitoring is active.


Next Steps

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