Key Takeaways
Lombard is a Bitcoin infrastructure protocol that offers liquid staking through LBTC, cross-chain integration, and access to yield strategies.
The platform features LBTC, a liquid, yield-bearing version of Bitcoin secured by the Lombard Security Consortium and integrated with Babylon staking.
Lombard offers yield vaults and a DeFi marketplace to automate LBTC deployment across ecosystems.
BARD is the protocol’s native token. It’s used for governance, staking, incentives, and participation across the Lombard ecosystem
What Is Lombard?
Lombard is a Bitcoin infrastructure protocol that offers liquid staking through LBTC, cross-chain integration, and access to yield strategies. The protocol introduces LBTC, a liquid and yield-bearing version of Bitcoin that is fully backed 1:1 by native BTC. With LBTC, you can stake Bitcoin, earn yield, and deploy it in decentralized finance (DeFi) applications while keeping your exposure to the underlying asset.
Additionally, Lombard offers vaults and a DeFi marketplace that provide access to curated Bitcoin yield strategies and structured financial products. The platform's operations are secured by the Lombard Security Consortium, a group of institutions responsible for validating transactions and ensuring the system's integrity.
LBTC
LBTC is a tokenized version of Bitcoin that is fully backed 1:1 by native Bitcoin. Unlike traditional wrapped Bitcoin, LBTC is yield-bearing. When you stake through Lombard, your BTC is secured with Babylon’s Bitcoin Staking Protocol, allowing rewards to accrue and increase LBTC’s value over time. LBTC is available on multiple blockchains, meaning you can still participate in DeFi activities such as lending, borrowing, or providing liquidity while maintaining full exposure to your Bitcoin.
How Lombard Works
Staking with Babylon
Lombard is built on Babylon’s Bitcoin Staking Protocol, which lets BTC holders delegate their Bitcoin to help secure Proof of Stake (PoS) systems. This process allows holders to earn rewards while their BTC remains on-chain.
When users deposit BTC into Lombard, it’s staked through Babylon and earns rewards in different tokens. These rewards are sold in liquid markets and converted into BTC, which is added to reserves. Over time, reserves may hold more BTC than LBTC in circulation, so the protocol periodically adjusts the reserve ratio that defines how LBTC is minted and redeemed. This process allows LBTC to be fully backed by Bitcoin while also capturing staking rewards.
Lombard Security Consortium
The Lombard Security Consortium is a group of independent members that help validate the network’s main operations. The consortium oversees activities such as deposits, redemptions, and staking. The group also runs the Lombard Ledger, a dedicated blockchain that records all transactions and governance decisions.
This ledger acts as a verifiable and auditable source of activity within the protocol. Because decisions require agreement from multiple parties, the consortium reduces reliance on any single actor and supports transparency in how LBTC is managed.
The staking process usually consists of the following steps:
Deposit BTC: Send Bitcoin to a unique address generated by Lombard, selecting the desired blockchain for LBTC receipt.
Mint LBTC: Once the deposit is confirmed, the protocol issues LBTC on the selected chain. LBTC represents the user’s staked Bitcoin, keeping it both liquid and usable in DeFi.
Generate rewards: Through Babylon’s Bitcoin Staking Protocol, your BTC is staked to help secure other PoS networks, and rewards are earned in different tokens.
Convert rewards: These rewards are sold in liquid markets by the protocol and converted into additional BTC, which is added to reserves.
Redeem BTC: When you unstake, your LBTC is burned. After the withdrawal period ends, you’ll receive your BTC back based on the current reserve ratio.
Key Features
DeFi marketplace
Lombard’s DeFi Marketplace is a platform that brings together Bitcoin-based opportunities across multiple blockchains and protocols. Through the marketplace, you can find various strategies, including lending, borrowing, liquidity provision, and vault products, all organized in a single dashboard. Each opportunity is reviewed with DeFi partners, and you can filter by chain, protocol, or risk profile.
Vault strategies
Lombard offers vaults that automatically deploy LBTC across DeFi protocols. When you deposit LBTC, it’s allocated to strategies such as providing liquidity, lending, or yield farming. The vaults are actively managed by Lombard in collaboration with partner DeFi protocols. They rebalance over time, compound rewards, and adjust to changing market conditions.
Lombard offers different types of vaults to meet different user preferences. Certain vaults prioritize sustainable, cross-chain returns by allocating LBTC to established protocols, while others target newer ecosystems that offer higher incentives. This structure provides LBTC holders with a means to access diversified yield opportunities without needing to manage strategies themselves.
Risks and Considerations
Before using Lombard, it’s important to consider the potential risks. For example, if you stake BTC, there is a chance of slashing if validators don’t perform as expected. The nine day unstaking period can also expose you to volatility, where LBTC may trade above or below the value of Bitcoin.
As an LBTC holder, you face depeg risk, since the market price of LBTC can diverge from the BTC it represents and can be redeemed for. Lombard’s Vaults may also present risk, as projected returns depend on the performance of the DeFi protocols.
The BARD Token
BARD is the native token of the Lombard protocol, with a maximum supply of 1 billion tokens. It’s used within the ecosystem for many purposes, including:
Governance: BARD holders can vote on proposals covering fee policies, product development, and ecosystem grants, which are managed by Lombard’s Liquid Bitcoin Foundation.
Security: Staking BARD helps secure the LBTC cross-chain bridge, the Lombard Ledger, and related infrastructure.
Incentives: BARD holders can receive early access to Lombard products along with preferred terms and additional features.
Staking rewards: Stakers can earn yield and potentially receive incentives from partner protocols. Unstaking may take up to 21 days to help maintain network stability.
Lombard (BARD) on Binance HODLer Airdrops
On September 17, 2025, Binance announced BARD as the 41st project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from September 9 to 12 were eligible to receive BARD airdrops. A total of 10 million BARD tokens were allocated to the program, accounting for 1% of the total token supply.
BARD was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.
Closing Thoughts
Lombard aims to shift Bitcoin from being a passive asset to one that plays an active role in on-chain markets. With LBTC, your Bitcoin can earn rewards through Babylon while staying liquid and usable across different blockchains. The platform also offers vaults and a DeFi marketplace, making it easier to access yield strategies without managing them manually.
