Binance Labs has announced its investment in Lombard, the innovative developer behind LBTC, a security-first Bitcoin liquid staked token (LST). This move is part of Binance Labs’ commitment to supporting early-stage projects with the potential for significant impact on the Web3 ecosystem.
LBTC enables both individual Bitcoin holders and large institutions to earn yield on their Bitcoin while leveraging their assets within decentralized finance (DeFi). Lombard’s collaboration with Babylon aims to bridge Bitcoin’s economic value and security capabilities with the dynamic opportunities available in DeFi.
Significant Market Impact
Since its launch in August, Lombard has captured 40% of the Bitcoin LST market, boasting a Total Value Locked (TVL) of over $500 million or 8.5K BTC, from more than 12,500 users, according to data from Dune. Over 60% of the total LBTC is actively used in yield strategies on platforms like Pendle, Maple Finance, Morpho, and ZeroLend.
Lombard is also pioneering the introduction of the first Bitcoin Liquid Restaked Token through a partnership with ether.fi. The company is currently in Phase 2 of its roadmap, focusing on integrating LBTC with top Ethereum DeFi protocols. Phase 3 will expand LBTC’s availability across multiple Layer-2 chains and Layer-1 networks, alongside deeper integration with Babylon’s Bitcoin Staking Protocol.
Future Plans and Security Measures
With the new funding from Binance Labs, Lombard plans to broaden LBTC’s reach across new blockchain networks, allowing users to stake BTC and mint LBTC. LBTC is distinguished by its robust security and decentralization, utilizing a decentralized validator network known as the Security Consortium to ensure transaction integrity.
Lombard’s dedication to security is further demonstrated through multiple audits, an active bug bounty program, and 24/7 threat monitoring. Andy Chang, Investment Director at Binance Labs, expressed excitement about supporting Lombard’s vision to scale LBTC across DeFi, recognizing the project’s potential to meet a clear market need.
Jacob Phillips, Co-Founder and Head of Strategy at Lombard, expressed gratitude for Binance Labs’ support, emphasizing the importance of connecting with a global audience of Bitcoin holders eager to unlock more utility from their assets.
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