Product upgrade: Yield-bearing LBTC launching on 22 July
LBTC is getting an upgrade and becoming a yield-bearing asset — unlocking native BTC-denominated yield, with the same liquidity and DeFi compatibility 260K+ holders know and love.
Check out this major UX upgrade👇
Today, LBTC is a 1:1 liquid staked version of Bitcoin — integrated across DeFi and redeemable for BTC at any time with yield claimable separately.
With this upgrade, LBTC will accrue yield directly — without any requirements to claim.
Yield is sourced through Babylon’s Bitcoin Staking Protocol.
In Q4, Babylon will provide TAC, BOB, Osmosis, Union and more with security, increasing the yield accruing to LBTC.
Staking rewards will be periodically swapped for LBTC.
It’s important to note that LBTC will not be rebasing. The value of LBTC will increase as staking rewards accrue, but the amount of LBTC will stay the same.
When redeemed, each LBTC becomes redeemable for more BTC.
From a UX perspective, this is a major upgrade:
→ No claiming from the Staking Yield pool
→ BTC stays in motion — and grows in value
→ LBTC remains fully compatible with DeFi
This keeps LBTC simple and composable across DeFi — while giving Bitcoin holders what they want: real yield, in BTC.
Lombard is working closely with protocol teams and risk councils to ensure a seamless transition:
→ SDK and oracles are being updated
→ All existing LBTC positions will remain intact
If you're a DeFi protocol and have questions please DM, or speak to your Lombard team rep.
The new reserve ratio will be published and verifiable via:
→ Chainlink
→ Redstone
→ The LBTC smart contract
Redemptions and mints will use the on-chain reserve ratio — not external price feeds.
Action required!
LBTC holders who staked prior to Babylon Genesis (April 6th) must claim $BABY from the Staking Yield pool, before 22 July.
The claim UI will be depreciated on 22 July and all unclaimed BABY will be redistributed to LBTC as yield.
LBTC was already Bitcoin’s most integrated liquid staking asset.
Now it’s becoming yield-bearing — and that changes the game.
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