Lombard and Eigenlayer partner to bring Bitcoin restaking to Ethereum
Lombard has partnered with Eigenlayer and the Eigen Foundation to integrate bitcoin into Eigenlayer’s restaking ecosystem, marking the first time Bitcoin (CRYPTO:BTC), via Lombard’s LBTC (CRYPTO:LBTC) token, will be used as collateral for decentralised services on Ethereum (CRYPTO:ETH).
This collaboration allows bitcoin holders to restake LBTC, a liquid staking token native to Ethereum, enabling them to earn yield while securing Autonomous Verifiable Services (AVSs) such as Layerzero and Babylon-validated networks.
Eigenlayer, a protocol built on Ethereum, extends the security of staked assets by allowing restaking, which increases capital efficiency and provides additional rewards for participants.
Lombard’s LBTC integration unlocks dual rewards: base yield from Babylon and extra earnings through Eigenlayer restaking.
The Eigen Foundation plans to incentivise LBTC adoption across Eigenlayer’s ecosystem, which currently supports over 190 AVSs and 80,000 staking addresses.
Lombard and Eigenlayer are also researching slashing risk management to enhance security for bitcoin restaking.
A Decentralized Validation Node (DVN), developed in collaboration with Layerzero, will improve cross-chain data availability, aligning with Eigenlayer’s modular infrastructure to foster interoperability.
The partnership aims to shift Bitcoin’s role from a passive store of value to an active participant in decentralised innovation within the Ethereum ecosystem.
“This integration redefines BTC’s utility by enabling holders to contribute to securing decentralized services while earning rewards,” according to the announcement.
At the time of reporting, the Bitcoin price was $94,791.89 and the Ethereum price was $1,802.91.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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