Binance Labs invests in Lombard Bitcoin DeFi project LBTC, aiming to expand adoption and integrate Bitcoin with decentralized finance.
Binance Labs has announced a new investment in Lombard, the creator of LBTC, a Bitcoin liquid staking token (LST). This token allows Bitcoin holders to earn returns while using their assets in decentralized finance (DeFi). Since its launch in August, Lombard has quickly become a key player in the Bitcoin LST market. It has captured 40% of its market and locked up over $500 million.
In this case, LBTC was developed to assist individual Bitcoin holders and institutional investors in making returns. To put it simply, by staking their Bitcoin, users avail themselves of DeFi opportunities without relinquishing ownership of the coins. Lombard has incorporated with Babylon to deepen the connection between Bitcoin security and DeFi, with the intent of providing more benefits and new situations for users.
Binance Labs Backs Lombard’s Bitcoin DeFi Vision
As per Dune Analytics, Lombard now controls 40% of the Bitcoin LST market, with over 12,500 users and an 8,500 BTC TVL. More than 60% of LBTC tokens are being utilized in DeFi yield farming on Pendle, institutional lending on Maple Finance, and lending and borrowing solutions on Morpho and ZeroLend. Lombard is also moving to list the first Bitcoin Liquid Restaked Token through its partnership with ether.fi.
As of now, Lombard is in phase two of its roadmap. This phase is all about integrating LBTC with the best Ethereum DeFi platforms. In the next phase, LBTC will be listed across several Layer-2 chains and Layer-1 protocols. More on, the company also aims to expand its level of integration with Babylon’s Bitcoin Staking Protocol. Lombard is already Babylon’s biggest delegator, having delegated over 7,100 BTC to its platform.
Lombard has expressed his desire to make LBTC available on more blockchains through the new funding by Binance Labs. The aim should be to enable the user to stake his/her Bitcoin and, in the process, gain an LBTC. However, from the features of LBTC, the most prominent one is the security that the currency has. Lombard uses the decentralized validator network known as the Security Consortium to ensure that every transaction is secure. Furthermore, the platform employs multiple audits, bug bounty, as well as constant threat monitoring to enhance security measures.
Andy Chang, Binance Labs’ investment director, expressed excitement about the investment. He highlighted that Lombard’s approach of combining Bitcoin with DeFi addresses a clear market need. Furthermore, he emphasized Binance Labs’ support for Lombard’s vision as they expand LBTC in the DeFi space.
On the other hand, Jacob Phillips, Co-Founder of Lombard, thanked Binance Labs for their support. He explained that the investment would play a key role in increasing LBTC’s adoption globally. Moreover, he believes it will open new opportunities for Bitcoin holders in DeFi.
