LBTC is a yield-bearing Bitcoin liquid staked token. The BTC underlying LBTC is staked to Babylon’s Bitcoin Staking Protocol. This BTC secures multiple proof-of-stake networks — including BOB, Osmosis, and TAC — which pay for that security in their native governance tokens. These rewards are converted to BTC and reflected in LBTC’s value — meaning holders earn native BTC-denominated yield, passively.
Users could manually claim BABY from Babylon's Airdrop via a "Staking Yield" page in the Lombard WebApp before 22nd July 2025. From this date, all yield is reflected in the LBTC/BTC price.
How It Works
The mechanism works as follows:
Staking rewards accrue in different tokens to Lombard Protocol
Lombard Protocol passively sells these rewards using the most liquid markets available
The supply of BTC grows
There is now more BTC than LBTC in circulation, hence a reserve ratio is periodically increased. This is the rate at which LBTC can be minted and redeemed.
For holders, it’s seamless:
You deposit BTC and receive LBTC.
Over time, that LBTC grows in BTC terms, automatically.
There are no additional steps, claims, or conversions.
Your BTC stays liquid, composable, and cross-chain.
Roadmap
April 2025: Babylon's Airdrop for Phase-2
BABY was claimable via the Lombard dApp until 22nd July 2025.
Any unclaimed BABY has been redistributed to current LBTC holders after this date.
Slashing risk of 0.1% was introduced into the Babylon protocol.
July 2025: LBTC's Yield-accruing Transition
LBTC is no longer 1:1 with BTC, given yield accrual.
Additional BABY earned from staking between Babylon's TGE in April to the 22nd July 2025 is distributed to LBTC holders over a defined period.
No user action required!
October 2025: Babylon's Second Airdrop
Any BABY rewarded to Lombard Protocol as part of an additional 200M BABY airdrop will be distributed as yield to LBTC holders over a defined period.
No user action required!
Q4 2025: Babylon's Phase-3
Bitcoin staking will now secure additional networks - not only Babylon Genesis. This leads to potential increased yield opportunities.
