Finance company Lombard introduces LBTC on Etherlink, broadening Bitcoin decentralized finance (DeFi) possibilities within the Tezos Layer 2 network.
In a significant move for the DeFi ecosystem, Lombard Finance has launched its flagship LBTC product on the Tezos L2 network, Etherlink. This launch significantly expands Bitcoin-based DeFi opportunities on Tezos, enabling Bitcoin liquidity to flow into the Etherlink ecosystem and across its DeFi applications.
LBTC is a liquid-staking bitcoin token that can be used across Etherlink's range of DeFi applications. With LBTC, users can stake their Bitcoin and receive liquid-staked LBTC tokens that are redeemable 1:1 for Bitcoin while also earning staking rewards. This means that LBTC holders can maintain their Bitcoin exposure while actively participating in Etherlink’s DeFi protocols such as lending, staking, and liquidity provision without transferring custody of their assets.
The deployment of LBTC on Etherlink stands to add substantial liquidity to the Tezos-powered ecosystem. Key impacts on the DeFi ecosystem include increased interoperability, new DeFi use cases, yield generation, security and trust, and strategy alignment.
LBTC bridges Bitcoin to the Tezos ecosystem, enhancing multi-chain DeFi activity and ecosystem growth. It allows Bitcoin holders to engage with innovative DeFi products on Tezos L2. Because the BTC backing LBTC is staked on Babylon, users gain staking rewards alongside liquidity incentives, improving capital efficiency.
The security and trust of LBTC are assured, as the token is fully audited by experts such as Immunefi and Halborn. It is redeemable 1:1 for bitcoin, providing confidence in the token’s backing and safety.
LBTC will be accessible across multiple DeFi protocols within Etherlink, including Superlend, Hanji, IguanaDEX, and oku. Furthermore, LBTC will also be integrated into the Apple Farm program, enabling users to earn rewards for using it in their interactions with Etherlink's growing DeFi ecosystem.
This move fits Lombard Finance’s broader multi-chain approach, following integrations with other networks like Sui, Ethereum, Base, and BNB Chain. With 70% of LBTC supply currently active in DeFi protocols, the integration with Etherlink is part of Lombard's continued strategy of cross-chain expansion.
In other news, the U.S. Senate has unveiled a new cryptocurrency regulation proposal, while the SEC moves forward on universal crypto ETF listing standards. Meanwhile, Mill City Ventures III, Ltd. announces a $450 million private placement to initiate a Sui treasury strategy, and Snail, Inc. announces its intent to explore a proprietary USD-backed stablecoin. Blocksquare surpasses $200 million in tokenized real estate as the global RWA market booms, and Bit Origin secures $500 million in equity and debt facilities to launch a Dogecoin treasury. Saudi Arabia also announces the Oil & Gas Technology Summit 2025, scheduled for 7th and 8th September. Lastly, Threshold Network's tBTC is now live on Sui, ushering in a new era for Bitcoin DeFi.
- The launch of LBTC, a liquid-staking bitcoin token on Etherlink's Tezos L2 network, enables Bitcoin holders to engage with DeFi protocols such as lending, staking, and liquidity provision, while maintaining their Bitcoin exposure and earning staking rewards.
- LBTC bridges Bitcoin to the Tezos ecosystem, adding substantial liquidity to the DeFi ecosystem, enhancing multi-chain DeFi activity, and promoting ecosystem growth.
- The deployment of LBTC stands to have significant impacts on the DeFi ecosystem, including increased interoperability, new DeFi use cases, yield generation, security and trust, and strategy alignment, due to its integration with various DeFi protocols within Etherlink and the Apple Farm program.
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