What is LBTC? The current ... | 币世王 OKX Feed

What is LBTC? The current usage of BTC on-chain is too fragmented: wBTC, BTC.b, sBTC are everywhere, which not only leads to severe centralization but also scatters BTC liquidity! LBTC is an attempt to clarify the source. Its goal is straightforward: To create a truly universal liquid version of BTC that can cross chains, earn interest, connect to DeFi, and be decentralized! All of this comes from Lombard ～ ▰▰▰▰▰ Core Structure ※ 1:1 Backing: LBTC is backed by real BTC, and each LBTC can be redeemed. ※ Native Cross-Chain Support: Not relying on bridges, but directly minted on multiple chains, without fragmentation and centralization. ※ Yield Model: Integrates Babylon staking + Lombard Lux, with multi-layered earnings automatically accumulated. ※ Strong Liquidity: LBTC can be used as collateral to participate in lending, LP, Vault, DEX, and other full-chain activities. ※ Solid Security Structure: Based on a consensus network composed of Figment, Galaxy, Kiln, P2P, etc., rather than custodial institutions or centralized bridges. ▰▰▰▰▰ What benefits do LBTC holders have? If you used to just hold BTC, now: ※ You can redeem BTC anytime without sacrificing liquidity. ※ You can earn Babylon Staking rewards + Babylon points + Lombard rewards + DeFi protocol incentives. ※ You can implement various DeFi strategies such as providing liquidity on DEX, collateralized lending, and automated vaults. ※ You can engage in delta-neutral (hedging) or staking arbitrage strategies. ▰▰▰▰▰ Why are these types of assets important? The market has long needed a unified on-chain interface for BTC: ※ wBTC is too centralized and slow for withdrawals. ※ BTC.b is mostly on Avalanche and not universal. ※ tBTC and sBTC models are too complex and lack liquidity. ※ Ordinals, Runes, and brc20 are not suitable for financial infrastructure. LBTC is the best-designed balance between security structure and financial utility! ▰▰▰▰▰ In summary, if you are a long-term BTC holder, you might want to consider using LBTC to open up a second layer of earning potential. After all, just holding it is no longer the optimal solution in today's on-chain era!

20.8K

The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.