⚡️ Brothers, on August 11, @Lombard_Finance announced that LBTC officially starts generating passive Bitcoin income. This is not just a functional update, but a fundamental reconstruction of the gameplay on the BTC chain.
Traditionally, Bitcoin on-chain has mostly been static: you either hold it and wait for appreciation, or you collateralize it to borrow stablecoins, but the assets themselves do not grow in the process.
The significance of this LBTC upgrade is that it allows Bitcoin to be staked in the Babylon protocol, enabling holders to retain the potential for BTC appreciation while also earning about 1% native BTC income annually, paid directly in Bitcoin, without complex token economics or manual claiming processes.
There are three core changes: automatic value growth, staking rewards are directly reflected in the LBTC price, and upon redemption, you will receive more BTC than you initially staked; liquidity is not restricted, allowing LBTC to still be used as DeFi collateral, participate in lending, or liquidity mining while earning income; capital efficiency is improved, as native earnings can offset borrowing rates, making collateralized lending more competitive.
In terms of security, this upgrade has passed audits by OpenZeppelin and Sherlock, with all reserves and earnings being transparent and verifiable, and real-time validation by Chainlink / Redstone oracles.
My view is that this kind of design will make moving Bitcoin on-chain not just a demand for speculators, but a rational choice for fund managers. Because the earnings are native and without additional risk, the motivation for Bitcoin's on-chain adoption will significantly increase.
#Bitcoin #DeFi #LBTC #BTCfi #BabylonChain #Yap #KaitoYap @KaitoAI
Mark your calendars: August 11
LBTC officially starts accruing BTC yield.
This upgrade isn’t just technical, it changes how BTC works for you.
From cheaper stablecoin borrows to simpler treasury management and more BTC out than you put in, here are 10 things to expect...
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