Staking Bitcoin provides additional Bitcoin returns.

Staking BTC mints LBTC, an institutional grade yield-bearing Bitcoin, fully-backed by BTC and free to compose throughout DeFi. LBTC allows allocators to grow their BTC holdings while retaining core exposure to the asset.

You deposit your Bitcoin to the unique address provided, from anywhere. The Security Consortium keeps Bitcoin reserves safe, while also putting your Bitcoin to work to secure other networks and generate revenue. LBTC holders can always redeem for native BTC.

The current 14-day trailing APY is: 0.81% paid in native BTC.

LBTC is a freely transferrable token that aims to generate consistent revenue, the first-step up the risk curve after holding native Bitcoin. As such, it serves as the top Bitcoin derivative across many DeFi applications and even entire blockchains.

LBTC is fully backed by Bitcoin. As yield accrues, each LBTC represents more BTC over time. That means when you stake BTC, you’ll receive fewer LBTC units - but the same BTC value.

If you were to immediately unstake, you would receive the same amount of BTC back that you deposited (minus a small fixed network fee).

• Technical: As with all DeFi applications, key risks include smart contract risk and protocol risk. Lombard has been audited many times by the most reputable security teams, including OpenZeppelin and Veridise.
• Market: LBTC is available to buy and sell on many secondary markets. Whilst LBTC has very deep liquidity across many ecosystems, these prices may fluctuate and the price may deviate from its redemption price. You can always access its underlying value in native Bitcoin, after the unstaking period (liquidity risk).
• Financial: Slashing is the risk of validators misbehaving on any of the networks that Lombard secures. Lombard’s design minimizes exposure by working only with reputable validator sets, and all validators that work with Lombard implement proprietary anti-slashing countermeasures.

You can unstake at any time by redeeming LBTC on-chain. Native BTC will be returned to you. This process takes 7-9 days to complete.

Fees include:

• A small network fee for minting (only if to Ethereum).
• A small fixed network fee for redeeming
• Performance fee on rewards earned