Will Lombard be the next king of cash flow like BTCFi? In the crypto world, USDT / USDC defines the starting point for stablecoins. In the Bitcoin capital market, Lombard is likely to follow a similar path. However, many people tend to classify Lombard as an LST protocol, but its essence is closer to that of an issuer. ▰▰▰▰▰ Similarity in Business Models Lombard's logic is almost identical to that of Tether/Circle: ※ Tether/USDC: Users deposit USD → Issue USDT/USDC → Invest the underlying USD in U.S. Treasuries to earn interest. ※ Lombard: Users deposit BTC → Issue LBTC → Invest BTC in Babylon, Vault, Basis-trade strategies to earn interest. ▰▰▰▰▰ Key Differences ※ Tether/Circle: Profits belong to the company, users only have usage rights. ※ Lombard: Profits mainly belong to users, the protocol only takes a small fee. This may seem like a detail, but it is the fundamental difference between Web2 and Web3. The former follows a platform profit logic, while the latter follows a protocol profit logic. ▰▰▰▰▰ Why is it Important? Today's Tether/Circle relies on 3-5% returns from U.S. Treasuries, generating annual profits in the billions, becoming the cash flow king in the crypto market. Lombard is also replicating this model, but the focus has shifted to Bitcoin: aiming for an annualized return of 1-5%+ through staking and strategies. The difference is that it does not make money for users but allows users to take this portion of the profit themselves. This means Lombard not only replicates the cash flow logic of Tether/Circle but also fills the gap of user value sharing in the spirit of Web3. ▰▰▰▰▰ Investment Perspective If Tether's market value of $1.7 billion in 2018 was a hundredfold opportunity, then Lombard in 2025 may be at a similar starting point. Tether allows USD to flow on-chain, while Lombard aims to make Bitcoin not just digital gold, but a productive asset that can earn interest, circulate, and serve as collateral in capital markets. ▰▰▰▰▰ Conclusion The comparison between the two reveals a clear conclusion: ※ Same model: Issuing assets and capturing profits. ※ Different paradigms: Tether/Circle represents Web2, Lombard represents Web3. Investing in $BARD is like betting on a dividend-type Tether/Circle, just with Bitcoin as the object. This is not only a continuation of the business model but could also be the starting point for Bitcoin in capital markets. Will it be tokenized in the future? Will public companies buy it as reserves? This is not impossible 🤔 #KaitoYap @KaitoAI @JacobPPhillips @Lombard_Finance #Yap