Bitcoin stake management moves to EigenLayer with collaboration between Lombard and Eigen Foundation
In a significant move to enhance Bitcoin's role in the decentralised finance (DeFi) ecosystem, Lombard Finance and the Eigen Foundation have announced a partnership. This collaboration aims to enable Bitcoin (BTC) restaking within DeFi, thereby increasing capital efficiency and opening up new yield generation opportunities for BTC holders.
Lombard Finance, a protocol built on Babylon, issues a liquid staking token named LBTC. This token represents BTC that has already been staked, allowing users to deposit it into various yield-generating vaults and DeFi applications across multiple blockchains. This innovative concept, known as BTC restaking, offers two-sided yield opportunities for BTC holders. Users can reutilise their staked Bitcoin holdings, earning multiple streams of yield through lending, liquidity provision, and yield trading, in addition to the original staking rewards.
By partnering with the Eigen Foundation, Lombard is likely to leverage Eigen's expertise or infrastructure to enhance its BTC restaking model. This collaboration is expected to further integrate Bitcoin with institutional-grade DeFi vaults, thereby scaling its role as a foundational onchain asset.
The partnership between Lombard and Eigen Foundation targets the development of a Bitcoin restaking ecosystem. This ecosystem will enable BTC holders to generate additional yield by using liquid staking tokens like LBTC. It will also serve as an entry point for BTC into diversified DeFi investment strategies, such as vaults, liquidity provision, and lending. This, in turn, is expected to promote broader adoption of Bitcoin as a principal asset powering onchain financial products.
Moreover, the partnership will facilitate institutional-grade DeFi participation with scalable, efficient capital use. The restaked BTC assets on EigenLayer will secure actively validated services such as bridges, oracles, Layer 2s, side chains, and data availability networks.
Jacob Phillips, co-founder of Lombard Finance, stated that the partnership with EigenLayer marks a significant moment for Bitcoin, as LBTC becomes the first BTC asset to enter the restaking ecosystem. Luke Hajdukiewicz, head of AVS business development at Eigen Lab, expressed that Lombard is an excellent addition to the ecosystem, bringing its extensive experience in the BTC ecosystem to provide additional and diverse security to AVSs.
In the coming months, Lombard and Eigen Foundation plan to bolster BTC restaking security and slashing design. This partnership is a step forward in transforming Bitcoin into a multi-use, yield-generating asset in DeFi, effectively increasing capital efficiency and opening new income streams for holders beyond traditional staking or holding.
This collaboration between Lombard Finance and Eigen Foundation is part of Lombard's goal of expanding Bitcoin utility through more use cases. It is expected to contribute to the strengthening of decentralised infrastructure across the ecosystem.
- Lombard Finance's collaboration with the Eigen Foundation shall allow BTC holders to generate additional yield by utilizing liquid staking tokens like LBTC within the Bitcoin restaking ecosystem, enabling users to engage in diversified DeFi investment strategies such as vaults, liquidity provision, and lending.
- With Eigen Foundation's expertise and infrastructure, Lombard aims to bolster BTC restaking security and slashing design, thereby transforming Bitcoin into a multi-use, yield-generating asset within the Decentralized Finance (DeFi) ecosystem, increasing capital efficiency and opening new income streams for holders.
