Lombard Vault, a Bitcoin-focused yield product by Lombard Finance, surpassed the $100 million mark in TVL. Today, the total value of deposits is at a record $114.5 million, according to data from DefiLlama.
Lombard Vault launched in mid-September with about $40 million in TVL. Therefore, its liquidity value has nearly tripled in under a month.
The product enables users to deposit Wrapped Bitcoin (WBTC), LBTC (a liquid staking token representing Bitcoin deposited with Lombard), and other tokens to leverage decentralized finance (DeFi) strategies, earning an annual percentage yield (APY) of over 11%.
The vault, which was developed by Lombard in partnership with Veda, operates as an automated yield management solution that strategically deploys Bitcoin-denominated deposits across various DeFi products, such as Gearbox, Morpho Blue, Pendle, and Uniswap. It also offers automated compounding by converting all accrued DeFi rewards to LBTC.
The most commonly deposited tokens in Lombard Vault are LBTC, PENDLE-LPT (a Liquidity Provider Token representing Pendle deposits), and WBTC.
Lombard Vault saw record inflow volumes on Thursday, October 10, with more than $17 million worth of tokens being deposited on the platform. On this day, LBTC made up over 95% of the total inflows.
LBTC is an Ethereum-based token backed by Bitcoin at a 1:1 ratio. The token earns a native yield from Babylon Staking.
On October 10, the total value of BTC deposits to mint LBTC was over $500 million, the highest level since the platform’s launch at the beginning of September. Therefore, Lombard has minted over 8,300 LBTC tokens. Etherscan data shows LBTC is held by over 12,700 wallets, an increase of more than 2,000 since the end of September.
In mid-July, we reported that Lombard raised $16 million in a Series A round led by Polychain Capital and joined by BabylonChain, dao5, Franklin Templeton, Foresight Ventures, Mantle EcoFund, and Nomad Capital.
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