- Lombard Finance raises $16 million to introduce Bitcoin-based restaking, enhancing BTC’s role in DeFi.
- Bitcoin transitions from store of value to productive asset through Lombard’s restaking initiative.
- Bitcoin-based restaking is set to transform BTC into an active DeFi asset, thanks to Lombard.
Lombard Finance has secured an impressive $16 million in funding to pioneer Bitcoin-based restaking. The company is partnering with the Bitcoin staking protocol Babylon to bring this innovative concept to the world of digital finance.
Elevating BTC from Store of Value to Productive Asset
Lombard’s mission is to elevate Bitcoin beyond being a mere store of value. By introducing restaking, they aim to transform BTC into a productive asset that actively contributes to the Web3 economy.
This development is significant because decentralized finance (DeFi) has predominantly thrived on other blockchains. Restaking gained prominence on Ethereum through EigenLayer.
EigenLayer allowed users to earn extra interest on assets they had already staked to secure Ethereum. These “restaked” assets were pooled together to fortify a web of other crypto protocols that relied on proof-of-stake security.
Lombard’s Approach
Lombard’s restaking initiative builds upon Babylon’s cross-network security technology. Babylon allows people to use Bitcoin to secure other proof-of-stake networks.
Now, Lombard is taking it a step further by introducing liquid bitcoin tokens (LBTC). These tradeable receipts allow users to retain liquidity over their staked BTC while securing other networks.
Over $1.3 trillion worth of Bitcoin could be used for lending, borrowing, and trading. This will benefit both Bitcoin holders and the broader DeFi ecosystem.
Lombard’s $16 million funding round was led by Polychain Capital, a prominent player in the crypto investment space. Other participants included BabylonChain, dao5, Franklin Templeton, Foresight Ventures, Mirana Ventures, Mantle EcoFund, and Nomad Capital.
Lombard’s ambitious vision aims to bridge the gap between Bitcoin and DeFi. This will turn the world’s most valuable cryptocurrency into an active participant in the evolving digital economy.
Read Also
The post Lombard Finance Raises $16M to Integrate Bitcoin’s Potential in DeFi appeared first on Crypto News Land.