Bitcoin Enters the Restaking Game: Lombard Raises $16 Million to Bring Bitcoin-Based Restaking to DeFi
The rise of “restaking” in the blockchain world has taken a new turn with the introduction of Bitcoin-based restaking. Lombard, a startup in partnership with Bitcoin staking protocol Babylon, has raised $16 million to bring the restaking trend to the most valuable blockchain.
Restaking, a concept popularized in Ethereum circles, allows users to earn interest by leveraging their staked assets to help secure other blockchain apps. Now, Lombard aims to elevate Bitcoin from a store of value to a productive asset that flows into the Web3 economy and drives sustainable growth.
The funding round for Lombard was led by Polychain Capital, with participation from BabylonChain, Inc., dao5, Franklin Templeton, and other prominent investors. Lombard’s integration of Bitcoin into the world of decentralized finance (DeFi) is a significant step forward for an industry that has largely been lacking in Bitcoin offerings.
The concept of restaking was first introduced on Ethereum with EigenLayer, a DeFi success story that quickly amassed $18 billion in deposits. Lombard’s dive into restaking will be built on top of Babylon, allowing users to use Bitcoin to secure other proof-of-stake networks.
One of the key innovations that Lombard brings to the table is the introduction of “liquid bitcoin” tokens, or LBTC, which will allow users to retain liquidity over the BTC they’ve staked to secure other networks. This move is expected to open up new capital opportunities for Bitcoin holders and provide new capital and users for various ecosystems and protocols.
With Bitcoin’s massive market value and reputation for stability, Lombard’s foray into Bitcoin-based restaking is poised to make a significant impact on the blockchain space. As Olaf Carlson-Wee, the founder of Polychain Capital, stated, the potential for Bitcoin to catalyze growth across the entire blockchain industry is immense.
Overall, Lombard’s entry into the world of Bitcoin-based restaking represents a major step forward in the evolution of blockchain technology and decentralized finance.