Lombard LBTC
Overview
Status
Mainnet
Type
Liquid Staking
BTC Supply
₿0
Lombard offer a mechanism that enables users to deposit BTC and receive a wrapped version of BTC that represents BTC staked into the Babylon protocol.
Assessment
Asset Custody
Users trust a network of custodians in the Lombard protocol. Signers under review
BTC backing Lombard LBTC is secured by a network of custodians participating in Lombard’s security consortium. The security consortium participates in a CometBFT consensus protocol.
Adding and removing validators from this consortium is handled by the current validator set within a given epoch. When a user deposits funds into the Lombard protocol, they are given a specific CubeSigner address to manage their deposits and staking transactions.
We are reviewing the signer set for the Lombard Security Consortium.
Adding and removing validators from this consortium is handled by the current validator set within a given epoch. When a user deposits funds into the Lombard protocol, they are given a specific CubeSigner address to manage their deposits and staking transactions.
We are reviewing the signer set for the Lombard Security Consortium.
Supply Issuance
Issuing LBTC tokens requires consortium & bascule approval
Issuing new LBTC tokens requires approval from the consortium validator set and Bascule bridge. If both of these parties approve a specific batch of mint requests, new LBTC tokens will be created.
The LBTC token contract owner can grant and revoke minting & burning permissions for actors who facilitate cross-chain transfers (e.g. Chainlink CCIP).
The LBTC token contract owner can grant and revoke minting & burning permissions for actors who facilitate cross-chain transfers (e.g. Chainlink CCIP).
Censorship Resistance
Pause function on respective contracts
Token contracts have a pause function implemented. The pauser role can pause transfers of LBTC unilaterally. The pauser role is held by a 2/8 GnosisSafe.
Governance
Contracts are upgradeable after 1 hour delay. A centralized party can upgrade contracts
Contracts are upgradeable after a 1 hour delay. Contract upgrades can be proposed and executed by a ⅗ GnosisSafe.
Protocol Transparency
The protocol provides a public proof-of-reserve
The project provides active proof-of-reserves. The proof-of-reserves can be seen here. The proof-of-reserves is provided through an integration with Redstone.
⚠️ We have not reviewed the codebase behind this PoR integration.
⚠️ We have not reviewed the codebase behind this PoR integration.
External operators are disclosed
Operators of the protocol have been disclosed.
Operators undergo KYB checks and must be approved by members of the consortium network before entering the protocol.
Operators undergo KYB checks and must be approved by members of the consortium network before entering the protocol.
Redemptions enabled and documented
Redemptions are enabled. The project has documented how redemptions are processed in their documentation.
Contracts are open-source and verified
Contracts related to the project are source viewable and verified.
Technology
User keys managed in CubeSigner
When users deposit their funds into the Lombard protocol, the security consortium creates a BTC address for their deposit. This address stores the funds backing their LTBC holdings on the destination chain.
The keys for this address are managed in a CubeSigner device. CubeSigner is an HSM service that stores users’ keys in secure hardware. It additionally restricts spending actions to staking-specific transactions.
The keys for this address are managed in a CubeSigner device. CubeSigner is an HSM service that stores users’ keys in secure hardware. It additionally restricts spending actions to staking-specific transactions.
Additional Considerations
Reserve assets
Lombard LBTC is primarily backed by native BTC.
On BNB Smart Chain, it is backed by BTCB.
On BNB Smart Chain, it is backed by BTCB.
Blacklist monitor on deposits
Lombard scans incoming deposit transactions against a sanctions database. If a user with a blacklisted address attempts to deposit funds into Lombard, their mint request will be declined.
Babylon is not live
The Babylon blockchain is not live. Only deposits are being processed.
Knowledge Bits
Learn more