The significance behind the Lombard upgrade is profound! In my opinion, many people think this is just a regular upgrade, but they are mistaken! I have re-read several articles and reached the conclusion: ※ BTC is no longer a non-productive asset. In the past, the logic of BTC was very simple: Buy and hold, waiting for the price to rise. Whether it sits in a cold wallet for years or is used as collateral to borrow stablecoins, BTC itself does not provide any ongoing cash flow. This time, LBTC connects to the Babylon staking protocol, directly bringing native BTC yields into DeFi. Simply put, if you stake 1 Bitcoin in LBTC, even if you do nothing, after a year you will receive over 1% in BTC-based returns, rather than some token airdrop or platform points! The significance of this is: The opportunity cost of BTC is decreasing. In the future, when everyone can easily put BTC into yield-generating staking, pure non-interest holding will gradually lose its appeal! ※ Yields not only exist but can also be combined. Another killer feature of LBTC is: It is still BTC and can be called upon by DeFi at will. Many yield-generating BTC products in the past faced a problem: Either they required locking liquidity or exposed users to new token risks. LBTC has no such burden: 🔻 It can still be used as LP 🔻 It can still be placed in various vaults 🔻 It can still be used as collateral in lending markets Its value is increasing every day because the yields are automatically reflected in the price of LBTC itself. No fees, no re-basing, and no conversion hassles. ※ Long-term impact on the Bitcoin ecosystem. The most underestimated part is actually the change in mindset of BTC holders. In crypto, the largest collateral asset in the long run must generate cash flow. The staking yields of Ethereum have already shaped a huge LST ecosystem, and BTC will eventually follow this path. This upgrade is a slow initiation! Some may say that 1% annualized return is nothing, but the significance behind this number is extraordinary: It represents a subtle change in BTC holding habits, a precursor to institutions gradually accepting on-chain BTC liquidity, and a catalyst for deeper participation of BTC in DeFi! So, do you think this is important? In the future, if market interest rates rise and the yields from protocols increase, this yield curve will continue to rise! ▰▰▰▰▰ Here are the details I find most interesting: ※ BTC in, BTC out. No conversion to other tokens, all BTC-based, which will provide a sense of underlying security for many people! ※ Capital efficiency. You can use LBTC for collateralized lending, and its native yields will partially offset borrowing interest, which is very attractive for high-leverage strategies! ※ Transparency. All value accumulation is clearly visible on-chain through Chainlink and Redstone oracles, which is what institutions care about the most! ※ No need for operation. Many yield BTC products require frequent collection, but this is fully automated, ensuring no yield is missed and no fear of forgetting to claim! ▰▰▰▰▰ My judgment: This upgrade is not a small feature for LBTC, but the starting point for a yield-generating paradigm on the Bitcoin chain. In the past, much BTC was wrapped in various derivatives, and investors had doubts about safety and liquidity. This time, LBTC brings: Native BTC staking yields, full liquidity, and full on-chain transparency, fulfilling all three conditions at once! If you were already planning to hold BTC, the appeal of this model will only grow! This is clearly not a quick step, but the beginning of the normalization of Bitcoin's role in DeFi! In the future, BTCFi will definitely be an unmissable trend!