Lombard Ditches Babylon Staking for Bitwise-Managed Options Strategy

Lombard, a protocol focused on Bitcoin liquid staking, has announced a significant shift in its LBTC token yield strategy. The project will move away from Babylon Bitcoin staking and toward a covered-call options strategy managed by Bitwise.

The new approach aims for a 2.5% annual net APY in BTC terms and involves allocating up to 60% of LBTC collateral assets to the new strategy. Anchorage Digital Bank and Kraken Institutional will hold the underlying Bitcoin in custody.

The transition begins with a $10 million pilot allocation during the week of Aug. 17, with the full allocation expected to be completed in September. Existing LBTC holders do not need to take any action.