LBTC by Lombard: The Gen III Standard for Wrapped Bitcoin LBTC by Lombard represents a new generation of wrapped Bitcoin — one that solves the major flaws of its predecessors. I call it Gen III, because historically, the 3rd generation of products tends to be the most refined, having learned from the mistakes of earlier versions. The Flaws of Gen I: Multisig Wrappers Take WBTC, for example. It relies on a multisig wallet. While this setup spreads responsibility across multiple signers, it comes with a critical weakness: if a sufficient number of signers collude, they can seize all the underlying BTC. In practice, the only safeguard is the reputation of the signers — hardly a foolproof defense. What’s more, the number of WBTC signers hasn’t been stable. Initially, there were 11 signers, later expanded to 18, and eventually reduced to 13. Notably, some of those excluded included Alameda/FTX — the very entities behind the 2022 bear market — and other firms that reportedly lost their management keys. These events alone highlighted the fragility of the model and sparked demand for a better solution. Moreover, let's look at other major signatories: - Compound — repeatedly hacked, raising doubts about its reliability despite being a top lending protocol. - BadgerDAO — suffered a $125M exploit while promising BTC yield, despite being one of leaders in its sector. - Multichain — shut down due to regulatory pressure in China, despite being the largest bridge. - Ren — lost significant collateral in FTX, operated with opaque liquidity management, and ultimately disappeared, althoug it was one of most famous projects in BTC eco at that moment. The lesson is clear: multisig wrappers are inherently risky. Projects, no matter how reputable they appear, can collapse, mismanage keys, or even act maliciously. The core issue is that custody and security are not their primary business. The Compromise of Gen II: Centralized Wrappers To address these weaknesses, major exchanges like Binance and Coinbase introduced their own wrapped BTC products — what I call Gen II. These shift full responsibility to a single, highly reputable custodian such as a leading CEX. While this reduces the risks of multisig mismanagement, it creates a new problem: centralization. Tokens like cbBTC and BTCB are not censorship-resistant. Their issuers can block or freeze assets at any time, undermining the trustless ethos of Bitcoin. Additionally, issuance is restricted to a limited number of entities that must undergo strict KYC/KYB procedures. For many, especially institutional players in TradFi, this raises red flags around accessibility, censorship, and counterparty risk. Enter Gen III: LBTC by Lombard This is where Lombard changes the game: 1. Decentralization — LBTC minting/burning/bridging operates via a PoA consensus, with plans to move toward full permissionlessness. 2. Open Issuance — Anyone can issue LBTC, with no paperwork or gatekeeping. 3. Non-Custodial Security — Using Cubist technology, BTC is stored non-custodially, meaning no third party — not even Lombard — can access user funds. With these innovations, Lombard has effectively removed the risks that plagued earlier wrapped BTC models. It’s no surprise that LBTC has gained significant traction over the past six months. Last point: - Real TradFi will not go where there are risks of blocking and depegs like WBTC, cbBTC, BTCB. So, LBTC will be the main option for them. And yield will be a nice additional feature that increases the retention rate. And follow on strong visioners and analysts: @0xBreadguy @alpha_pls @poopmandefi @TheDeFISaint @DoggfatherCrew @0xSalazar @DefiIgnas @Defi_Warhol @hmalviya9 @Mars_DeFi @rektdiomedes @eli5_defi @JayLovesPotato @Steve_4P @TheDeFinvestor @arndxt_xo @0xCheeezzyyyy @Moomsxxx @0xAndrewMoh