TL;DR:
Lombard built LBTC to solve one of the most persistent problems in the Bitcoin DeFi world: allowing BTC to operate across multiple chains and generate yield without fragmenting liquidity or relying on centralized custody. The token, backed 1:1 with Bitcoin locked in the Babylon protocol, allows holders to earn native yields through staking while maintaining exposure across lending, borrowing and trading markets on different EVM networks.
However, bringing that Bitcoin-backed asset into the DeFi ecosystem demanded infrastructure that no existing oracle could offer: continuous cryptographic verification that every Lombard (LBTC) in circulation had real Bitcoin as its backing.
Without that real-time guarantee, lending protocols could not safely accept LBTC as collateral. Traditional audit models, based on periodic snapshots, introduce delays that in fast-moving DeFi markets translate into structural risk: the collateralization ratios that determine liquidations and loan limits can become outdated within hours.
RedStone built a Proof of Reserves oracle designed specifically for Bitcoin liquid staking tokens. The system monitors the Bitcoin addresses that custody reserves in Babylon, verifies ownership through cryptographic attestation methods, calculates the precise ratio between locked BTC and circulating LBTC, and publishes that data on-chain as a continuously updated feed across all EVM chains where the token operates. Any protocol or user can inspect the backing without relying on Lombard’s manual reports.
The measurable impact of this architecture is reflected in adoption. LBTC reached over $50 million in total value locked just within Morpho markets and integrated with more than 80 DeFi protocols, including perpetuals DEXs and automated yield vaults. Institutional managers such as Gauntlet, Yearn, SteakhouseFi, kpk and MEV Capital adopted the token, evidencing the confidence generated by RedStone’s verification infrastructure.
The RedStone and Lombard integration turned reserve attestation — historically a centralized, trust-based process — into a programmatic and permissionless function accessible to any part of the ecosystem.
