What is LBTC?
Now the way BTC is used on the chain is too fragmented: wBTC, BTC.b, and sBTC are everywhere, which is not only seriously centralized, but also makes BTC liquidity scattered! LBTC is the current attempt to get to the bottom of the matter. Its goals are straightforward:
Make the real BTC a universal liquid version that can be cross-chain, interest-bearing, DeFi connected, and decentralized! It all comes from Lombard ~
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Core structure
※ 1:1 Endorsement: LBTC is backed by real BTC, and each LBTC is convertible
※ Cross-chain native support: It is not a bridge, it is directly minted in multiple chains, not fragmented and decentralized
※ Interest-earning model: Access to Babylon staking + Lombard Lux, multi-layer income will be automatically accumulated
※ Strong liquidity: LBTC can be used as collateral to participate in full-chain games such as lending, LP, Vault, and DEX
※ Solid security structure: It relies on a consensus network composed of Figment, Galaxy, Kiln, P2P, etc., rather than a custodian or centralized bridge
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What is LBTC holders used for?
You used to take BTC and wait, and now:
※ BTC can also be redeemed at any time without sacrificing liquidity
※ You can receive Babylon Staking Rewards + Babylon Points + Lombard Rewards + DeFi Protocol Incentives
※ Can do various DeFi strategies, such as going to DEX for liquidity, mortgage lending, and automated vault
※ Do delta-neutral (hedging) or staking arbitrage strategy
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Why are these assets important?
In fact, the market has long needed such a unified interface for BTC on the chain:
※ wBTC is too centralized and slow to withdraw
※ BTC.b is mostly in Avalanche and is not universal
※ The tBTC and sBTC models are too complex and illiquid
※ Ordinals, Runes, and brc20 are not suitable for financial infrastructure
LBTC is the design with the best balance between security structure and financial use!
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In summary, if you are a long-term holder of BTC, you may wish to start considering using LBTC to open up the second layer of income space. After all, hoarding is no longer the best solution in today's on-chain era!
#KaitoYap @KaitoAI @JacobPPhillips @Lombard_Finance #Yap
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