📝 Brothers, the Lombard product is upgrading. Starting from July 22, LBTC will upgrade to an auto-yield version, especially for users who hold BTC long-term and don't want to deal with it, making it a one-time solution. Previously, LBTC was a traditional liquid staking, where you staked BTC to receive 1:1 LBTC tokens, which could be used for mining, lending, and collateral, but the earnings had to be claimed manually. 👇👇👇 1. LBTC upgraded to yield-bearing asset After the upgrade, it becomes a yield-bearing asset: the earnings will be automatically reinvested, adding to the LBTC itself. No Rebase, no increase in quantity, but the value of each LBTC increases. Holding LBTC means its value will automatically rise, but the quantity appears unchanged, somewhat like wstETH. For example: if you currently have 1 LBTC, in a few months it might be worth 1.02 BTC, but the number still shows 1. When you redeem, you can get more BTC, ensuring steady happiness. 2. What is the logic behind the upgrade? After the LBTC upgrade, the core is to connect to Babylon's Bitcoin staking security network. Starting in the fourth quarter, Babylon will provide security services for projects like TAC, Osmosis, Union, etc., allowing the BTC staked behind LBTC to earn returns. These earnings will be periodically converted into more LBTC and automatically distributed to LBTC holders, with no operations or gas fees involved, quietly adding to your earnings. Maintaining the original BTC peg, no cross-chain or wrapping, making it safer and cleaner; DeFi compatibility remains unchanged, and LBTC can continue to participate in various strategies. This upgrade essentially solves three major problems of BTCFi: complex earnings, cross-chain risks, and difficulty in combinations. Lombard chooses to continue on the path of BTC remaining stationary while simultaneously running in DeFi. Old LBTC does not need to be migrated or replaced; holders can just wait for the automatic yield. The SDK and oracle system are also upgraded in sync, allowing DeFi projects to connect seamlessly, further strengthening ecological collaboration. 3. What should old users pay attention to? If you participated in staking before the Babylon mainnet launch on April 6 and have unclaimed $BABY tokens, make sure to claim them before July 22, or the rewards will be completely reclaimed and converted into the LBTC system's earnings pool. Remember to claim, or you will suffer a loss. 4. My understanding The evolution of LBTC this time is from being active to being yield-bearing, following the path of ultra-liquid staking for BTC. It embeds the earnings model into the asset itself without affecting your ability to use LBTC for various operations, retaining all DeFi composability. This is mainstream on the ETH side with things like sfrxETH, rsETH, but it is still a blank space in the BTC field. And @Lombard_Finance, leveraging Babylon's structure, is more native than those protocols that wrap BTC: it does not cross-chain and then wrap, but keeps the BTC itself stationary, with mapping and earnings fully automated on-chain. Honestly, this is not the same approach as the current bunch of BTCFi protocols that send you a wrapped token and bridge to EVM.