Lombard is a project aiming to turn Bitcoin into a more DeFi oriented ecosystem. Currently, Bitcoin is mostly used for simple holding and transferring. Lombard wants to change that by integrating Bitcoin into decentralized finance (DeFi) through their product, LBTC.
What is Lombard
Here’s how it works:
- LBTC (Liquid Staked Token): LBTC is a token backed 1:1 by Bitcoin. It lets Bitcoin holders earn yields, provide network security, and participate in DeFi. All this happens without losing Bitcoin's original value.
- Built on Babylon: LBTC connects Bitcoin with DeFi and proof-of-stake (PoS) ecosystems through Babylon. This helps bring Bitcoin into more financial services, like lending, borrowing, and staking, across blockchains.
- Unlocking Bitcoin’s Potential: Lombard believes that by moving just 10% of Bitcoin’s market cap into DeFi, the total value locked (TVL) could more than double. This would help grow the entire decentralized economy.
In summary, Lombard aims to take Bitcoin’s value and place it within DeFi. Through LBTC, Bitcoin can become more useful and power decentralized networks.
Team of Lombard
Jacob Philips
Co-founder
Jacob Phillips is the co-founder of Lombard, a DeFi startup focused on integrating Bitcoin into decentralized finance by making it a productive asset across blockchain ecosystems. Before founding Lombard, he led Product & Strategy at Perennial Labs and was a partner at Polychain Capital. A graduate of Case Western Reserve University, Jacob is trying to build Lombard's vision of onboarding $1 trillion in Bitcoin into DeFi.
Lombard review
Pros
Earning Staking Rewards
Lombard enables Bitcoin holders to earn passive income through staking. This gives you a steady stream of rewards for participating in the network’s economic security. You could be adding a low-effort revenue stream instead of holding idle Bitcoin.
Unlocking DeFi Potential
LBTC lets Bitcoin holders to use their staked Bitcoin within the DeFi ecosystem. This provides opportunities for earning additional returns through liquidity provision, lending, and yield farming, expanding Bitcoin’s functionality beyond simple holding and transferring.
Increased Bitcoin Utility
Since Lombard is aiming to increase Bitcoin’s overall utility and appeal, which could positively affect Bitcoin’s value proposition. It lets Bitcoin to take on a more dynamic role in the crypto economy, making it a multi-functional asset.
Cross-Chain Liquidity
Lombard’s cross-chain compatibility lets LBTC to move between different blockchain ecosystems without fragmenting liquidity. This flexibility opens up more opportunities for you to leverage your Bitcoin across a variety of protocols, maximizing the asset's potential.
Cons
Technical Complexity
If you’re unfamiliar with cross-chain transactions, staking, or navigating the DeFi landscape, the process can be quite technical. This complexity could deter new or inexperienced users from participating in Lombard's ecosystem.
Smart Contract Risk
As with any DeFi protocol, Lombard relies on smart contracts to facilitate transactions. While these contracts are typically secure, they are still susceptible to bugs, exploits, or vulnerabilities, which could result in loss of funds for users.
Market Volatility
The value of LBTC and the rewards you earn from staking can fluctuate due to market conditions. Since the cryptocurrency market is notoriously volatile, you may experience varying yields, and the value of your staked Bitcoin could drop significantly during downturns.
Opportunities
AirdropMainnet
Minimal cost: ~10 USD
Lombard
Use your Bitcoin for staking on Lombard in order to gain yield and a potential airdrop!