Lombard

Lombard LBTC

Lombard LBTC is a liquid staking token on Ethereum representing BTC staked on Babylon Protocol. Yield is generated from Babylon staking rewards distributed across four institutional Finality Providers, with BTC custody secured by Cubist CubeSigner HSM infrastructure.

AUM

$690.90m+3.11%

APY

0.53%

CCC+Rated Protocol

Updated Mar 16, 2026

Risk Rating

CCC+

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This rating is based solely on publicly available information. The range from CCC+ to A- reflects the gap between the current assessment and the potential rating achievable if all identified improvement areas are addressed.

SCS: Smart Contract Security

KMP: Key Management Permissions

M: Market

L: Liquidity

C: Collateral

PM: Protocol Mechanics

ICE: Infra Counterparty Exposures

PCE: Protocol Counterparty Exposures

G: Governance

FR: Financial Resilience

TLC: Team Legal Compliance

DT: Documentation Transparency

Potential Score

Provider risk assessed across Business, Operations, Reliability, and Security.

View the detailed scoring breakdown

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Contract Addresses

TokenContract

0x8236...4494

Timelock

0x055E...7e59

BARD Token

0xf0DB...9754

LBTCv (DeFi Vault)

0x5401...D57c

ConsortiumGovernance

0xed6D...80e0

Oracle (RedStone PoR)

0xb415...bc81

Key Strengths

Extensive audit coverage from top-tier security firms including multiple independent reviews plus an audit competition
Security Consortium of approximately 15 institutional members requiring supermajority consensus for all critical operations
Dual Proof of Reserves oracles from independent providers verify BTC reserves match LBTC supply across all chains in real time
Real-time monitoring with automated pausing capabilities from multiple independent security layers including invariant checks
BTC custody uses hardware security modules with certified enclaves where private keys are inaccessible even to the infrastructure operator
Backed by institutional investors including major venture and asset management firms with over a billion dollars in historical TVL

Key Risks

Proxy upgrade timelock of only one hour is significantly below the recommended threshold, allowing rapid contract changes with limited community review
All BTC backing depends on a single HSM infrastructure provider; a sustained outage could block all BTC withdrawals
Consortium signer wallet addresses are not publicly disclosed despite named institutional members, preventing on-chain independence verification
No treasury reserves, backstop fund, or safety module has been disclosed, leaving users unprotected against edge-case losses
Base staking yield is very low with much of the value proposition driven by incentive programs, raising yield sustainability concerns
The multi-day withdrawal period creates liquidity constraints and mass redemption behavior remains untested