Lombard Staked BTC (LBTC)

Use Cases of Lombard Staked BTC

• Lombard Staked BTC (LBTC) is a liquid staking token backed 1:1 by Bitcoin (BTC). It allows users to stake their BTC securely while keeping liquidity.
• LBTC can be used across decentralized finance (DeFi) applications such as lending, borrowing, trading, and liquidity provision without losing exposure to the original BTC value.
• It enables Bitcoin holders to earn staking rewards from the Babylon Bitcoin staking protocol while still being able to use LBTC tokens freely in DeFi.
• LBTC supports cross-chain use, allowing participation in multiple blockchain ecosystems including Ethereum, Base, Sui, and soon Starknet.
• The token helps Bitcoin support Proof-of-Stake (PoS) networks by providing economic security and earning yield, making BTC a productive financial asset.
• Users receive LBTC tokens when they stake BTC through Lombard, which can be traded or used as collateral without unstaking the original Bitcoin.
• LBTC integrates with various platforms and wallets, enabling easy staking and use in DeFi strategies, including yield farming and borrowing.
• The protocol automates staking rewards, increasing LBTC value over time relative to BTC, without requiring manual reward claims or validator management.

Technology and Integration

• Built on Ethereum and Babylon protocols, Lombard Staked BTC leverages advanced smart contracts and consensus mechanisms for security and transparency.
• It uses Babylon’s shared security layer to restake BTC, boosting PoS network security while maintaining BTC backing.
• The protocol is integrated with major staking infrastructure providers like Galaxy, Kiln, P2P, and Figment.
• Lombard offers SDKs for exchanges and wallets to enable one-click BTC staking and LBTC minting.
• LBTC is designed to be a universal liquid Bitcoin standard, natively cross-chain and yield-bearing.

Summary

Lombard Staked BTC transforms Bitcoin into a liquid, yield-generating asset that can be actively used in DeFi while preserving its original value and security. It unlocks Bitcoin’s potential by enabling staking rewards and cross-chain DeFi participation without locking up BTC.

Advantages

• Lombard Staked BTC is backed 1:1 by Bitcoin, allowing users to earn yields on their BTC holdings while keeping liquidity.
• It operates on the Ethereum platform and uses the Babylon protocol, enabling BTC to be used across DeFi applications.
• Users can trade LBTC freely or use it in DeFi activities like lending, borrowing, and yield farming without selling their Bitcoin.
• The protocol employs advanced security mechanisms and is supported by a decentralized Security Consortium to validate staking and transactions.
• LBTC holders can participate in governance and earn staking rewards from Babylon.
• It solves Bitcoin’s liquidity problem during staking by providing a liquid token that represents staked BTC.
• Supported by institutional-grade infrastructure and partnerships with reputable finality providers.

Disadvantages

• There are smart contract risks common to all DeFi protocols, which could lead to vulnerabilities or loss of funds.
• The security of staked Bitcoin depends on the validators chosen by the protocol.
• Unstaking LBTC involves a waiting period (about 9 days) due to Babylon’s security checks, which may limit immediate liquidity.
• The value of LBTC and staking rewards can fluctuate with market conditions.
• Reliance on Babylon’s staking infrastructure may introduce liquidity constraints during unstaking.
• Some users may face counterparty risk related to the protocol and lending platforms supporting LBTC.

Founders

Lombard Staked BTC was founded by Jacob Phillips, who is recognized as a co-founder of Lombard. Additionally, the founding team includes Alex Thompson, a former investment banker with over a decade of experience in financial markets, and Sarah Kim, a blockchain developer skilled in smart contracts and decentralized applications.

Investors in Lombard Staked BTC

Investors in Lombard Staked BTC include a wide range of participants attracted by its innovative Bitcoin staking and DeFi integration features. The token appeals especially to:

• Institutional Investors and Long-term Bitcoin Holders: They seek passive income and yield generation without losing liquidity or security of their BTC.
• DeFi Users: Those who want to use LBTC for lending, borrowing, trading, yield farming, and as collateral in decentralized finance protocols.
• General Crypto Investors: Individuals who buy LBTC on various centralized and decentralized exchanges such as Bybit, Coinbase, and others.
• Large Corporations Mentioned: Meta Platforms, Inc., Tesla, Inc., and Berkshire Hathaway Inc. are noted as investors or participants in the ecosystem.

LBTC tokens are minted only when users deposit BTC into the Lombard protocol, meaning the distribution is demand-driven and proportional to user participation. The protocol also involves a security consortium and partnerships with finality providers like Galaxy, Kiln, P2P, and Figment, which may represent institutional backing or collaboration.

For more details, visit the official website: https://www.lombard.finance/

Halal Status of Lombard Staked BTC

Lombard Staked BTC is a liquid staking token backed 1:1 by Bitcoin, allowing users to earn staking rewards while maintaining liquidity and value. Since Bitcoin itself is considered halal to own and trade, and staking in its traditional form does not involve interest (riba) or excessive uncertainty, Lombard Staked BTC aligns with these principles. The staking rewards come from supporting blockchain network security, which is generally viewed as permissible.

Reasoning

• Bitcoin and similar cryptocurrencies are halal to own and trade.
• Staking rewards are earned as a benefit of participating in network security, not from interest.
• Lombard Staked BTC maintains a 1:1 backing with Bitcoin and does not involve loans or interest.
• The token is used in decentralized finance without compromising the original asset's value.

Answer: Yes, Lombard Staked BTC is halal.