Lombard, a startup aiming to revolutionise Bitcoin's role within the decentralised finance (DeFi) landscape, has secured $16 million in seed funding.
This vote of confidence, led by Polychain Capital with participation from prominent players like dao5, Nomad, Foresight Ventures, and major cryptocurrency exchanges OKX and Bitget, reflects the growing interest in unlocking Bitcoin's potential within the Web3 ecosystem.
Founded in April 2024, Lombard's core mission is to elevate Bitcoin beyond its traditional function as a store of value. They envision Bitcoin as a dynamic financial tool that seamlessly integrates with DeFi protocols.
To achieve this, Lombard introduces LBTC, their flagship product.
LBTC functions as a liquid and yield-bearing representation of Bitcoin.
This innovative token allows users to retain ownership of their Bitcoin while simultaneously participating in DeFi activities like lending, borrowing, and trading across various DeFi platforms.
Essentially, LBTC unlocks the dormant liquidity trapped within Bitcoin and injects it into the DeFi space, fostering growth for both sectors.
A fun fact about Lombard:
Lombard's LBTC acts as a bridge between Bitcoin and DeFi.
Here's how it works:
Unlike similar tokens, LBTC is designed to be natively cross-chain, meaning it can seamlessly move across different blockchain networks.
This cross-chain functionality offers several advantages:
Lombard's seed funding round follows closely behind Babylon's successful $70 million Series A investment. Babylon's Staking Protocol plays a pivotal role in Lombard's mission.
Source: X @babylon_chain
This strategic partnership with Babylon, a prominent player in the DeFi arena, is a testament to their commitment to providing a robust solution.
Amassed with over 507,000 X followers, Babylon's expertise lies in its staking protocol, which empowers users to earn returns on their Bitcoin holdings by contributing to Proof-of-Stake (PoS) systems.
This collaboration allows Lombard's LBTC to act as a bridge, unlocking liquidity for staked Bitcoin within Babylon's protocol.
David Tse, Co-founder of Babylon, emphasises the significance of this partnership:
Lombard's cross-chain LBTC product unlocks the vast potential of dormant Bitcoin liquidity, significantly bolstering the supply side of our Bitcoin staking protocol. We are thrilled about Lombard's funding success, which strengthens our collaboration and addresses a critical gap in the market.
Besides Jacob Phillips, who has introduced himself as the co-founder of Lombard, the identities of the other co-founders and members of the founding team remain unclear.
However, a X reply to a Lombard's post suggests that Luke Pearson and Kev Silk are also part of the founding team.
Co-founder
Jacob Phillips is a co-founder of Lombard, a position he has held since April 2024.
Jacob graduated from Case Western Reserve University and has extensive experience in DeFi and cryptocurrency.
He was previously the Head of Operations at Perennial Labs and a researcher at Polychain Capital.
Luke Pearson has also been associated with Polychain, with their tenures overlapping briefly for a year, indicating a likely meeting during their time at the company.
Product Manager
Kev Silk is a seasoned Product Manager at Lombard, specialising in UX design and end-user research for blockchain infrastructure.
With a background in research and product development for blockchain networks, he has led initiatives like ANKR token staking and AppChain infrastructure at Ankr.
Kev is dedicated to advancing blockchain technology by simplifying dApp development and enhancing decentralised ecosystems.
Luke Pearson is a Research Cryptographer with expertise in blockchain protocols and applied cryptography.
He has a background in smart contract development and protocol design, focusing on decentralised finance and P2P networks.
Luke has contributed significantly to projects at Polychain Capital and previously at the Dusk Foundation, advancing technologies that prioritise privacy and decentralised communication.
It is unclear regarding his involvement in Lombard, but on 10 July, he will be representing Lombard and Polychain at AltLayer ROLLUP DAY in Brussels, Belgium.
Lombard's roadmap for the future is ambitious yet achievable.
They plan to integrate LBTC with major DeFi protocols on the Ethereum mainnet in the near future, followed by an expansion to popular L2 chains later this year.
This widespread integration, combined with LBTC's unique cross-chain capabilities, has the potential to reshape the DeFi landscape by unlocking the power of Bitcoin in a way never seen before.
Lombard's vision of bridging Bitcoin and DeFi is audacious and tackles a major hurdle in the crypto space.
If successful, LBTC could unlock a flood of Bitcoin liquidity, invigorating the DeFi market and potentially pushing Bitcoin beyond its store-of-value reputation.
However, Coinlive advises caution as both Lombard and Babylon are nascent projects, with Babylon still in the testnet phase. Closely monitoring the development progress of both projects is essential before diving in.
The road ahead is long, but Lombard's innovative approach has the potential to be a game-changer in how we view and utilise Bitcoin.
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