A Bitcoin is no longer equal to a Bitcoin! This is all thanks to Lombard's latest update, which takes effect today! LBTC officially starts accumulating BTC-denominated returns for holders, with an annualized rate of about 1%, and the returns come directly from staking the underlying BTC in Babylon's Bitcoin Staking Protocol. For the past decade, BTC = digital gold. Sounds nice! But it doesn't earn money! Holding it is like keeping gold bars under your pillow, feeling secure, but earning no interest 🙈 However, all of this is being rewritten! ▰▰▰▰▰ Why is this a major turning point? In the logic of macro asset allocation, cash flow capability directly affects the attractiveness of assets: ※ Lower opportunity cost: In the past, holding BTC meant giving up interest from stable income assets, but now you can have both! ※ Improved capital efficiency: The returns from LBTC can offset part of the borrowing rates, freeing up cheaper leverage space. ※ Encouraging institutional entry: Passive, native, and uncomplicated BTC returns align better with institutional risk control and compliance requirements. BTC's identity is shifting from a pure store of value asset to a store of value and income-generating asset, which will change the flow of funds and market structure! ▰▰▰▰▰ The chain reaction of BTC cash flow ※ Deepening BTCFi liquidity The appeal of earning interest on holdings will lead to more BTC being brought on-chain, directly enhancing the depth of the lending market, LP pools, and derivatives market. ※ ETFs and traditional products may follow Once there are mature cases of on-chain BTC returns, traditional financial products (like BTC ETFs) may be forced to incorporate income features to remain competitive. ※ New strategic space opens up Hold LBTC → collateralize to borrow stablecoins → repurchase BTC → repeat, forming a low-cost BTC long leverage. ▰▰▰▰▰ Differentiated advantages of LBTC Compared to other BTC derivatives, LBTC's advantages include: ※ Native BTC returns: Returns are denominated in BTC, not relying on inflationary tokens. ※ Fully liquid: LBTC can be used as collateral, LP, or to participate in strategies at any time, with no lock-up! ※ On-chain transparency: Reserve and return data can be checked in real-time via Chainlink and Redstone. ※ Audited and securely launched: Audited by OpenZeppelin and Sherlock, deployed on Lombard Ledger, with no downtime! ▰▰▰▰▰ Summary What will the next decade of Bitcoin look like? For the first time, BTC is not just a static number on a balance sheet, but an asset that grows on its own. This change may be as significant as ETH staking in 2021-2022: It not only changes the way assets are used but will also reshape the entire ecosystem's capital structure, transforming into cash flow gold!