Lombard Finance Launches $BARD Token and Liquid Bitcoin Foundation
Bitcoin, traditionally viewed as digital gold, has a significant amount of BTC inactive in wallets. Liquid staking tokens are set to transform this by allowing bitcoin to function as a productive asset within decentralized finance (DeFi).
Liquid staking involves users contributing their crypto to secure networks in exchange for tradable tokens representing their staked assets while still earning rewards on the original tokens.
Lombard Finance is a key player in bitcoin liquid staking with its product LBTC, a yield-bearing token backed 1:1 by BTC. When BTC is staked through Lombard, users receive LBTC, enabling them to engage in DeFi activities across various protocols, including Aave and Morpho, while maintaining exposure to bitcoin.
Key points include:
- LBTC supports interoperability across Ethereum, Base, BNB Chain, and more.
- Lombard aims to mobilize dormant BTC liquidity for onchain capital markets.
- Ethereum’s liquid staking market is approximately $38 billion; bitcoin's liquid staking sector is around $2.5 billion.
- Lombard's LBTC represents about 40% of the bitcoin liquid staking market, valued at roughly $1.4 billion.
Lombard recently announced the creation of the Liquid Bitcoin Foundation and its utility token $BARD, along with a $6.75 million community sale. The foundation will oversee protocol stewardship, funding research, and establishing governance frameworks. $BARD allows holders to stake, vote on proposals, and access new products.