LBTC Secures $16M Funding Led by Polychain for Bitcoin Interest Earning
LBTC, a cross-chain token backed 1:1 by Bitcoin, has secured $16 million in funding led by Polychain Capital. The project, developed by a firm behind the Layer Babylon for Bitcoin, aims to provide users with new ways to earn interest on their cryptocurrencies.
LBTC, a token issued by Lombard, allows users to stake their Bitcoins on other blockchains or provide liquidity to decentralized exchanges for profits. The project is built on top of Babylon, an 'eigenlayer' for Bitcoin that stakes Bitcoins to create services like PoS chains or sidechains, similar to Eigenlayer on Ethereum. Babylon has also received funding, securing $18 million from Polychain Capital.
LBTC is a cross-chain token that pays interest, providing users with a simple, liquid access to Babylon once it starts paying interest. Currently, Babylon is in testnet and will take time before it begins paying interest with an economic basis. Lombard, the publisher of LBTC, uses CubeSigner to secure Bitcoins and aims to decentralize control through a 'consortium', although it is not yet fully decentralized as users hand over control of their Bitcoins to others.
LBTC, with its $16 million funding led by Polychain Capital, offers an innovative approach to earning interest on Bitcoin holdings. By leveraging Babylon, an eigenlayer for Bitcoin, and aiming for decentralized control, LBTC could become an attractive option for users once it starts paying interest with an economic basis.
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