Lombard: everything you need to know about BARD

What is Lombard?

Lombard (BARD) is a DeFi protocol that aims to make Bitcoin usable within other blockchains and DeFi applications. Instead of holding BTC without further functionality, Lombard enables the use of Bitcoin within DeFi while maintaining your exposure to BTC.

The core of Lombard is LBTC: a token that is backed one-to-one by real Bitcoin and that can simultaneously generate yields. This makes Lombard primarily aimed at Bitcoin holders who do not want to sell their BTC but do want to actively deploy it within the broader crypto ecosystem.

How does Lombard work?

Lombard works by locking up native Bitcoin and returning a tokenized version in the form of LBTC. This LBTC represents the underlying Bitcoin and can be used within DeFi applications on various blockchains.

The underlying Bitcoin is deployed within a staking mechanism, allowing yields to be generated. These yields are incorporated into the value of LBTC, enabling users to accumulate returns while maintaining their BTC position.

Since LBTC is available on multiple blockchains, secure cross-chain infrastructure plays an important role. Lombard is designed to make using LBTC on different networks possible without requiring users to manage complex bridge constructions themselves.

The BARD token

BARD is the native token of the Lombard protocol. The token is used for governance, for securing cross-chain infrastructure via staking, for ecosystem growth and for access to certain products and benefits within the protocol. The total supply of BARD is set at 1 billion tokens. The token runs on Ethereum.

The technology behind Lombard

Lombard’s technology revolves around combining Bitcoin with DeFi functionality. On one hand, the protocol ensures that Bitcoin can be locked and represented via LBTC. On the other hand, Lombard is designed to allow this token to function securely and efficiently across multiple blockchains.

The yield structure of LBTC is integrated into the protocol, so users do not need to actively claim rewards. The value development of LBTC reflects the underlying BTC and the generated returns.

For multichain use, Lombard uses a central protocol architecture that coordinates the issuance and transfer of LBTC. This ensures that the underlying Bitcoin remains consistently backed, regardless of which blockchain LBTC is used on.

The Lombard ecosystem

The Lombard ecosystem consists, among other things, of:

• LBTC as a yield-bearing Bitcoin token
• DeFi integrations where LBTC can be used as collateral or liquidity
• BARD as governance and ecosystem token
• A broader governance structure that supports the development of the protocol

The ecosystem is focused on unlocking Bitcoin capital within DeFi, without giving up BTC exposure.

Advantages of Lombard

• Bitcoin remains deployable: it makes it possible to use Bitcoin in DeFi without selling BTC directly
• Combination of ownership and yield: LBTC links exposure to Bitcoin to additional use cases within DeFi
• Multichain deployable: designed to be used on multiple networks

Disadvantages of Lombard

• Additional technical risk: the use of smart contracts and cross-chain infrastructure entails additional risks
• More complex than holding: requires more steps and understanding than simply storing Bitcoin

Who are the founders of Lombard?

Lombard is being developed by a team that focuses on Bitcoin infrastructure within DeFi. Jacob Phillips is mentioned as a (co)-founder.