Lombard has raised $16 million in a seed funding spherical. The spherical was led by Polychain with vital participation from dao5, Nomad, Foresight Ventures, and ABCDE, in addition to main exchanges together with OKX and Bitget.
Lombard goals to develop a Bitcoin restaking ecosystem in collaboration with Babylon, doubtlessly redefining the utility of Bitcoin throughout the web3 area.
The spherical additional noticed commitments from outstanding founders and executives throughout the cryptocurrency ecosystem, underscoring the broad-based confidence in Lombard’s progressive imaginative and prescient.
Reworking Bitcoin right into a Productive Asset
Lombard’s main purpose is to raise Bitcoin from a mere retailer of worth to a productive asset that may seamlessly move into the web3 economic system. Central to this transformation is LBTC, Lombard’s flagship product.
LBTC is a liquid and yield-bearing illustration of Bitcoin, designed to maneuver throughout chains and decentralized finance (DeFi) platforms as collateral with out sacrificing safety. By facilitating using Bitcoin in lending, borrowing, and buying and selling, LBTC goals to unlock new capital alternatives for Bitcoin holders and inject contemporary liquidity into DeFi ecosystems.
Leveraging In depth DeFi Expertise
The Lombard group includes veterans with in depth expertise within the DeFi area, boasting executives from famend firms corresponding to Argent, Coinbase, and Maple. This experience positions Lombard to successfully navigate and innovate throughout the quickly evolving cryptocurrency panorama.
A Strategic Partnership with Babylon
The seed funding spherical follows Babylon’s latest $70 million Collection A funding. Babylon’s Staking Protocol permits Bitcoin belongings to be staked in a trustless and self-custodial method, offering financial safety for Proof-of-Stake (PoS) programs like chains, L2 rollups, and Knowledge Availability layers.
By partnering with Babylon, Lombard will allow native BTC staking to safe PoS programs and earn yield. The liquidity for staked BTC might be unlocked via the issuance of LBTC, offering a liquid, yield-bearing Bitcoin illustration.
Integration and Future Prospects
Lombard plans to combine LBTC throughout main DeFi protocols on the Ethereum mainnet earlier than its anticipated launch on fashionable L2 chains later this 12 months.
Not like related tokens, LBTC’s native cross-chain performance will profit holders, chains, and their protocols by aggregating liquidity and discovering new use instances. This cross-chain method is anticipated to play an important position in rebuilding the ecosystem on prime of yield-bearing liquid restaked belongings, a technique confirmed profitable within the Ethereum ecosystem by platforms like Lido, EigenLayer, and Ether.Fi.
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