Lombard and Eigenlayer integrate Bitcoin into Eigenlayer's reStaking ecosystem on Ethereum, opening up new profit opportunities for BTC holders.
Lombard has just announced an official partnership with Eigenlayer and Eigen Foundation to integrate Bitcoin into Eigenlayer's reStaking ecosystem. This is the first time Bitcoin, through Lombard's LBTC token, is used as collateral for decentralized (DeFi) services on Ethereum.
Through this partnership, Bitcoin owners can reStake their LBTC, earning yield while participating in security for Autonomous Verifiable Services (AVSs) such as Layerzero network and networks verified by Babylon. Eigenlayer, the leading reStaking protocol on Ethereum, will expand its ecosystem to include Bitcoin — an asset that previously primarily played a value storage role.
Dual Income Opportunities and Expanded Utility
Lombard's LBTC, an Ethereum-native liquid Staking token, allows Bitcoin holders to participate in DeFi without sacrificing liquidation. According to Lombard's announcement, this integration opens up dual income opportunities: basic yield from Babylon, along with additional profits through reStaking on Eigenlayer.
Eigen Foundation will deploy incentive programs for LBTC acceptance in the Eigenlayer ecosystem, which already includes over 190 AVSs and 80,000 Staking addresses. Meanwhile, Lombard and Eigenlayer say they are jointly researching Slashing risk management to enhance security for reStaked Bitcoin assets.
A Decentralized Validation Node (DVN), developed in collaboration with Layerzero, will also expand Bitcoin's utility by improving cross-chain data sharing capabilities. The announcement emphasizes that this initiative aligns with Eigenlayer's modular infrastructure, promoting interoperability between blockchains.
The development teams believe this collaboration marks an important transformation: Bitcoin is no longer just a value storage asset, but also becomes an active component in decentralized innovation. Lombard and Eigenlayer expect to redefine Bitcoin's role in the continuously evolving blockchain context.
