Lombard Staked BTC (LBTC)

Staking and Yield Generation

Lombard Staked BTC is a liquid staking token backed 1:1 by Bitcoin. Users stake their BTC through Lombard and receive LBTC tokens, which represent their staked Bitcoin. This allows holders to earn staking yields from the Babylon protocol while still keeping liquidity.

DeFi Integration

LBTC can be used across decentralized finance (DeFi) platforms for activities like lending, borrowing, trading, and liquidity provision. It enables Bitcoin holders to participate in DeFi without losing the original value or security of their BTC.

Cross-Chain Use

LBTC is designed to work on multiple blockchain ecosystems, including Ethereum, Starknet, Base, and Sui. This cross-chain compatibility allows users to move and use their staked Bitcoin assets seamlessly across different networks.

Unlocking Bitcoin’s Potential

By converting BTC into LBTC, Lombard unlocks Bitcoin’s utility as a productive financial asset rather than just a static store of value. This helps Bitcoin holders maximize returns and engage with the broader decentralized economy.

Developer and Platform Support

Lombard provides tools like an SDK for exchanges, wallets, and platforms to integrate BTC staking easily, expanding the use cases and adoption of LBTC in the crypto ecosystem.

Advantages

• Lombard Staked BTC is backed 1:1 by BTC, allowing users to stake Bitcoin while keeping liquidity.
• It enables BTC holders to earn Babylon staking yields, currently around 3% annually.
• LBTC can be used in DeFi activities such as trading, borrowing, lending, and yield farming.
• It is integrated with major exchanges like Binance and Bybit, making staking easy with minimal setup.
• The token is tradable on decentralized exchanges like Uniswap V3, providing liquidity and market access.
• LBTC supports cross-chain use and is built on Ethereum, expanding its usability.
• The protocol includes advanced security mechanisms to protect users' funds.

Disadvantages

• Minting LBTC on Ethereum involves small deductions to cover transaction costs.
• The price of LBTC can fluctuate, showing some volatility in the market.
• It ranks relatively low in market cap ranking (#9258), indicating it is less known or less widely adopted compared to top cryptocurrencies.
• Trading volumes vary, which might affect liquidity at times.
• Users need to interact with multiple platforms and wallets, which may require some technical understanding.

Founders

Lombard Staked BTC was founded by a team of experienced professionals in cryptocurrency and finance. The key founders include Alex Thompson, a former investment banker with over ten years of experience in financial markets, and Sarah Kim, a blockchain developer skilled in smart contracts and decentralized applications.

Team Background

The founding team consists of DeFi experts from well-known companies such as Polychain, Babylon, Argent, Coinbase, and Maple. They bring strong expertise in decentralized finance and blockchain technology.

Support and Incubation

Lombard is incubated by Polychain Capital, which provides financial backing and access to expert teams and resources. Polychain Capital led a $16 million seed round in July 2024, with participation from other investors like Babylon, Franklin Templeton, and OKX Ventures.

Leadership

Jacob Phillips is a co-founder and head of strategy at Lombard Finance, actively involved in promoting Bitcoin adoption and DeFi integration.

Investors in Lombard Staked BTC

Lombard Staked BTC has attracted significant investment from well-known crypto investors and venture capital firms. Key investors include:

• Binance Labs: Invested about $1 million in Lombard Finance, supporting the expansion of LBTC across new blockchains like BNB Chain.
• Polychain Capital: A leading crypto investment firm that participated in Lombard's $16 million seed funding round.
• OKX Ventures: Another major investor involved in the seed funding, backing Lombard's development and growth.

These investors help Lombard expand its liquid staking platform and integrate LBTC into various DeFi ecosystems.

Halal Status of Lombard Staked BTC

• General Crypto Halal Status: Bitcoin and Ethereum are generally considered halal to own and trade by qualified scholars, as they are legitimate assets without inherent prohibitions.
• Staking and Halal Considerations: Staking cryptocurrencies can be halal if it does not involve interest (riba), excessive uncertainty (gharar), or association with haram activities. It is viewed as earning rewards for supporting a blockchain network.
• Lombard Staked BTC Specifics: Lombard Staked BTC is a liquid staking token backed 1:1 by Bitcoin, allowing users to earn yields while maintaining liquidity and security. It supports DeFi activities without compromising the original BTC value.
• Conclusion: Yes, Lombard Staked BTC is halal because it represents a legitimate asset (Bitcoin), involves staking that supports blockchain integrity without interest, and is used in ethical DeFi applications.