In our first Mixology series article, we explored the exciting opportunities surrounding Renzo’s LST, ezETH. In the second installment, we dive into Lombard's Bitcoin strategies, which offer a sophisticated approach to optimizing investment portfolios by blending traditional methods with trending assets. This robust mix aims to boost returns while effectively managing risk.
As we continue to explore these experiments, why not join us for a drink and share your thoughts? Cheers to the future of investing!
What Are Liquid Staking Tokens (LSTs)?
To grasp Lombard’s strategies more comprehensively, it’s important to understand Liquid Staking Tokens (LSTs). These tokens represent assets that are staked—like Bitcoin in Lombard’s case. When you stake Bitcoin through Lombard, you lock it to provide economic security and earn rewards. In return, you receive an LST, such as LBTC, which can be traded or used in other DeFi applications. This setup allows you to gain from staking while keeping your assets flexible for additional uses.
What Is LBTC?
LBTC is Lombard’s tokenized version of staked Bitcoin, created to enhance the utility of Bitcoin in the DeFi ecosystem. Here’s why LBTC is significant:
🌊 Liquidity: LBTC can be traded or used across various DeFi platforms while your Bitcoin remains staked, providing both liquidity and staking benefits.
💰 Yield Opportunities: It allows you to earn a native yield from staking Bitcoin and to participate in DeFi activities, thus expanding your earning potential.
🔥 DeFi: LBTC bridges Bitcoin’s economic value with the new opportunities and risk exposure in Proof of Stake (PoS) networks - L2, EVMs, etc.
Key Strategies in Lombard’s Mixology
1. LBTC/WBTC Curve Pool – Balanced Bitcoin Exposure with 1.78% Weekly APY
This strategy involves pooling LBTC with Wrapped Bitcoin (WBTC) in a Curve Pool. It provides balanced Bitcoin exposure, earning a steady weekly APY of 1.78%. Additionally, participants can earn 3x Lombard Points, adding further value to their investment. With a total value locked (TVL) of $1.59 million, this strategy offers a secure and rewarding way to engage with Bitcoin.
Accessing the LBTC/WBTC Strategy: Simply head to ShapeShift and swap your assets for LBTC/WBTC token to participate in this Curve Pool strategy.
2. PT-LBTC (Corn) – High Yield with 10% APY
The PT-LBTC strategy utilizes the Corn network, a new Ethereum Layer 2 solution that leverages its hybrid tokenized Bitcoin (BCTN) as the gas token. This strategy offers a fixed APY of 10% (at current rates), providing an attractive opportunity for Bitcoin exposure on Pendle Market. Corn's use of Super Yield directs yield back to users and protocols, enhancing the benefits of this investment strategy.
Accessing the PT-LBTC Strategy: To invest in PT-LBTC, visit ShapeShift, purchase PT-LBTC tokens, and then manage your investment through the Pendle or ShapeShift platforms.
Optimizing Your DeFi Investments
Lombard simplifies DeFi investing with its Bitcoin-focused strategies, helping you enhance returns while managing risks. For a balanced approach, consider the LBTC/WBTC Curve Pool, which combines LBTC with Wrapped Bitcoin (WBTC) for a 1.78% weekly APY and earns you 3x Lombard Points; just head to ShapeShift and swap your assets for LBTC. If you're aiming for higher yields, the PT-LBTC strategy on Pendle Market offers a 10% annual percentage yield (APY) by leveraging Corn’s yield mechanism.
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Learn More
https://medium.com/@ShapeShift.com
https://snapshot.org/#/shapeshiftdao.eth
https://warpcast.com/shapeshift