Mark your calendars: August 11 LBTC officially starts accruing BTC yield. This upgrade isn’t just technical, it changes how BTC works for you. From cheaper stablecoin borrows to simpler treasury management and more BTC out than you put in, here are 10 things to expect...

Before we dive in, here's a quick overview... LBTC is an institutional grade yield-bearing bitcoin, fully-backed by BTC and free to compose throughout DeFi. From Monday, LBTC will provide holders with a passive yield around 1%.

Yield is derived from staking the underlying BTC to Babylon’s Bitcoin Staking Protocol, allowing allocators to grow their BTC holdings while retaining exposure to Bitcoin’s upside and using LBTC in DeFi. Here are 10 things to expect with the upgrade...

1/ 🔁 The Value of LBTC Will Increase Holders will see the value of LBTC increase relative to BTC. LBTC holders will passively earn BTC yield. LBTC doesn’t rebase or emit additional tokens.

2/ ⚙️ LBTC Stays Liquid and Integrated Into DeFi From August 11, earn BTC yield while using LBTC as collateral when borrowing or LPing. It integrates cleanly into money markets, vaults, and structured products. No action required.

3/ 💸 More Capital-Efficient Collateral Borrowing becomes cheaper and more efficient with LBTC’s upgrade. Its native yield offsets interest rates, improving borrowing efficiency. This unlocks competitive strategies for onchain LBTC holders.

4/ 🧮 BTC In, More BTC Out When you redeem your LBTC, you get back more BTC than you originally deposited. Staking rewards are exchanged for BTC, so LBTC yield is paid in BTC, not altcoins or synthetic reward tokens. It's simple: BTC in, more BTC out.

5/ 🔐 Institutional Compatibility Institutions get simplicity and security. Passive, BTC-native yield introduces no operational complexity or compliance friction. No token management. No claim logic. Just yield.

6/ ⚖️ Lower Opportunity Cost for Holding BTC Historically, holding BTC meant earning nothing. Now, LBTC holders will preserve Bitcoin’s upside while earning passive BTC-denominated yield.

7/ 📊 Transparent, Onchain Accounting Yield accrues via protocol-based mechanics and verifiable reserve ratios. All value accrual is publicly viewable onchain via oracles from Chainlink and Redstone.

8/ 🔄 No Yield Left Behind Staking rewards from Babylon accrue directly into LBTC. All rewards are automatically reflected in LBTC’s value. No manual claiming. No missed airdrops. No lost dust.

9/ 🛡️ Trusted Infrastructure The upgrade has been audited by OpenZeppelin and Sherlock, and is already deployed to the Lombard Ledger with no downtime. LBTC holders and DeFi protocols can trust the infrastructure from day one.

10/ 🌐 Incentivizes Onchain Bitcoin Adoption Native yield gives every holder - large or small a direct reason to move BTC on-chain, expanding liquidity, deepening capital efficiency, and driving broader adoption.

This upgrade is more than an improvement, it redefines what BTC can do onchain. - Passive BTC yield, paid in BTC - No rebases, no claims, no hassle - Fully liquid and composable across DeFi Stake now: