LBTC Launches: Bitcoin Holders Can Now Earn Interest
Lombard, a blockchain company, has launched LBTC, a cross-chain token backed 1:1 by Bitcoin. Funded with $16 million, led by Polychain Capital, LBTC enables Bitcoin holders to earn interest while holding their coins. Lombard aims to decentralize control through a 'consortium' using CubeSigner.
LBTC operates by staking Bitcoins on other blockchains or providing liquidity to decentralized exchanges, inspired by another blockchain. It allows users to earn by simply holding the token.
Lombard, the publisher of LBTC, is not fully decentralized as users hand over control of their Bitcoins to others. However, the company is working to address this through a 'consortium' approach.
Lombard's partner, Babylon, is an 'Eigenlayer' for Bitcoin. Babylon stakes Bitcoins to create services like PoS chains or sidechains, similar to how Eigenlayer uses Ethereum's economic stakes. Babylon is currently in testnet and will take time before it starts paying interest with an actual economic basis. Once operational, LBTC could become a simple, liquid access to Babylon's services.
LBTC, a cross-chain token backed 1:1 by Bitcoin, offers a new way to earn interest on held Bitcoins. Backed by $16 million in funding, it is part of Lombard's broader effort to decentralize control. While not yet fully decentralized, Lombard is working on solutions. Partnered with Babylon, an 'Eigenlayer' for Bitcoin, LBTC's potential will grow as Babylon's services mature.
