Yield-Bearing LBTC Launch

The upgrade will embed staking rewards directly into LBTC, eliminating the need for separate claims from the Staking Yield Pool [Lombard X Post, 1945161892420575315]. Yield will stem from securing networks like Osmosis and Union, with rewards periodically swapped for LBTC, increasing its value over time without rebasing [Ibid]. This keeps LBTC liquid and DeFi-compatible, offering holders passive BTC-denominated growth. The transition is supported by updated SDKs and oracles, ensuring a smooth shift for existing holders [Ibid]. A key deadline: claim $BABY tokens from pre-April 2025 stakes by July 22, or they’ll be redistributed as yield [Ibid]. This upgrade could elevate LBTC’s adoption, especially with its current $2 billion circulation [CoinDesk, March 2025].

Recent News

Lombard has been on a tear. In July 2025, they unveiled a roadmap to bring Bitcoin capital markets onchain, hitting over $1 billion in locked value within three months and adding $2 billion in liquidity across 12 blockchains [Crypto Economy, 2025-07-17]. Platforms like Aave and Pendle have integrated BTC thanks to Lombard’s efforts, while a 14-institution security consortium ensures robust custody [Ibid]. This momentum sets the stage for the yield-bearing launch.

Future Plans

Looking ahead, Lombard aims to expand yield sources as Babylon secures more Bitcoin Supercharged Networks (BSNs) in Q4 2025 [Lombard X Post, 1945161929804407163]. The focus is on a fully onchain Bitcoin economy, with open standards and trustless bridges to other ecosystems [Crypto Economy, 2025-07-17]. This could position LBTC as a DeFi staple, competing with assets like stETH.

Onchain Data

Exact staking metrics for LBTC post-upgrade aren’t yet available, but its current market cap sits at $1.63 billion with a 24-hour trading volume of $5.38 million [CoinMarketCap, 2025]. Pre-upgrade, LBTC’s 260,000+ holders reflect strong adoption [Lombard X Post, 1945161892420575315]. Post-launch data will be verifiable via Chainlink and Redstone [Ibid].

Community Sentiment

X buzz is positive, with users like @katana calling BTCfi “sharper everyday” [X Post, 1945171389746430150]. Influencers highlight the UX upgrade and yield potential, though some caution about claiming $BABY before the deadline. Sentiment leans bullish, with 400M+ $BABY airdropped earlier fueling excitement [Lombard X Post, 1910305940194349299].

Additional Insights

This launch taps into the 2025 DeFi TVL surge, with Sui hitting $1.3 billion [DefiLlama, 2025]. LBTC’s non-rebasing model offers stability amid volatile markets, appealing to both novices and pros. Competitors like Lido may feel pressure to innovate.

Risk Disclaimer: Crypto investments carry volatility risks. Ensure you understand the upgrade process and claim deadlines to avoid missing out.