introduction
For more than 10 years, Bitcoin (BTC) has been recognized as a digital store of value from gold to gold and has been mainly served with hedge and long -term capital assets for inflation. This reputation is well obtained, but important questions are not revealed. How can HODLERS do more than simply holding with BTC? To the world Distributed Finance (Defi) As it continues to mature, the main paradigm shift is taking place. Bitcoin owners now have an unprecedented opportunity to convert static digital assets into productive capital in the defect ecosystem.
Unlike the traditional financial institutions that require intermediaries, long -term waiting time and compliance overheads, we use the power of blockchain and smart contracts to provide complete access to perfect financial services for a wide range of financial services, including borrowings, loans, yields and liquidity provisions. Although Ether Lee has historically dominated the defect space, he captured many developers and user activities, but Bitcoin represents the dominant mass of the market cap of about $ 85 billion. It is a huge capital reservoir waiting to flow into the decentralized economy.
Analysts estimate that more than $ 150 billion in BTC is dormant and there is no level from an infinite point of view. This creates a special opportunity for protocols and platforms that can unlock this hidden value. Those who design the legs between Bitcoin and Defi do not solve technical challenges. They will make financial changes possible at a systematic level.
Initiative of Lombard Finance
Lombard Finance stands at the forefront of this opportunity to open a series of tools that allow Bitcoin holders to give up their custody of assets or allow Bitcoin holders to access the entire product line of Defi services. For everyone, following the macro trend of encryption adoption and infrastructure development, this represents a representative example of how smart investment looks.
At the center of Lombard is a module -type infrastructure toolkit built to make Bitcoin productive in the distributed ecosystem. This includes:
- A smart contract support loan protocol that allows users to imitate BTC and borrow stablecoin
- The integration with other expressions of wrapped bitcoin (WBTC) and BTC allows Bitcoin to work directly in smart contract compatibility chains such as Ethereum and Polygon.
- Automatic risk management and credit scoring tools to efficiently manage the level of mortgage and prevent liquidation events
- Agricultural strategy that provides passive revenue to liquidity pool and bitcoin location
- Infrastructure for mining synthetic assets by using BTC as an untrusted support
This is profound that this means Bitcoin Hodlers. BTC is not sitting in a wallet or cold storage, and users can now access capital, deploy a profit generation strategy, or place Mint Stablecoin based on BTC. In fact, Lombard does not reduce the role of BTC’s value storage. Bitcoin Double Purpose: Value Storage to amplify. and Financial foundation in the defect economy.
Bitcoin holder’s opportunity
Non -efficiency of dormant bitcoin capital is difficult to ignore. The problem becomes clear due to the BTC inactive chain of more than $ 150 billion. Which opportunity remains on the table? Defi offers attractive use cases to unlock Bitcoin’s productive potential.
The yield of Defi depends on the protocol and strategy, but is often higher than that of traditional savings or money market tools. Loan protocols such as AAVE, Compound and CURVE often provide an APY range. 4% ~ 12%-It is sometimes higher when combined with governance token rewards or LP incentives. Concourse agricultural and staying strategies can further improve their profits by combining interest and protocol compensation.
Bitcoin Holders can be accessed in a smooth and safe way for these opportunities through a platform like Lombard. for example:
- Mortgage: The user can send a BTC as a protocol, receive WBTC in return, and rent it from Stablecoin to access liquidity without selling BTC.
- Provided by liquidity: The WBTC is paired with the stablecoin or other assets of the liquidity pool to create a transaction fee and obtain agricultural rewards.
- Synthetic Assets: Protect the BTC with Bloking Mortgage to minify tokenized assets representing Fiat calls, goods or indexes.
In addition, LOMBARD’s risk -optimized environment allows users to maximize yields without falling into a general trap that harasses Defi beginners by protecting loan parameters, mortgages and protocol levels.
If you have just started, check out this comprehensive Crypto Investing Guide for more information on using Bitcoin as a major capital based on a variety of yield -oriented portfolios.
Risk and consideration
In particular, high -value assets and defects such as Bitcoin require a cold understanding of potential risks. The increase in the decentralized finance led to innovative and profitable protocols, but also provided wise contract vulnerabilities, liquidity crisis and governance risks. The main considerations to keep in mind are:
- Smart Contract Bug: Even well -reviewed projects can unexpectedly experience code flaws that risk user funds.
- Oracle operation: Defi protocols often rely on Oracles on price feeds. If damaged, it can cause flawless liquidation.
- Protocol Governance: DAOS control major decision -Governance structure can lead to sudden changes in protocol rules or safety mechanisms.
- Liquidation risk: Excessive surges or sudden market rapids can cause forced liquidation to be forced to especially when the ratio of LTV is tight.
- Custody Packaging: Using WBTC or other token expressions, the wrapping process is completely distributed and if it is not transparent, the user is exposed to the opponent’s risk.
In order to explore these risks, investors must focus on some best practices.
- Participate only as a combat test, only an independent Defi protocol.
- Establish a conservative LTV ratio -Borrow only a part of the collateral available to reduce the risk of liquidation.
- To avoid excessive exposure to one protocol, diversify them over various platforms and strategies.
- Maintain control of personal keys and packaging assets using multisse Ig or hardware wallets.
- Continue to monitor and collect your location during market volatility.
Also consider implementing asymmetrical exposure strategies. Consider the less than the BTC portfolio, and to maintain the core long -term retention in a safe cold storage. This approach allows you to explore the benefits of capital productivity without applying the entire position to smart contract or liquidity risk.
conclusion
The transition from Bitcoin’s passive value store to active financial collateral shows important evolution in both the encryption ecosystem and a wider financial environment. Like a powerful new platform Lombard Finance We are building a future that provides a safe, expandable, and opportunity gateway for BTC owners to enter the defect revolution.
Bitcoin’s safety and tribe are paired with Defi’s flexibility and innovation to unlock the new capital efficiency layer. BTC is a place where you work for you 24 hours without sitting in your wallet. Over -yielding, immediate fluidity, synthetic asset creation and responsible leverage strategies are all options that can be easily accessible through LOMBARD’s state -of -the -art toolkit.
This is not convenience, but financial evolution. In the case of Smart Fintech users, it means that idle wealth can be transformed into active capital, which can produce new types of yields and usefulness that could not be reached before. In the next few years, as more holders have recognized the possibility of a rise in long -term ownership and recognizing the possibility of switching Bitcoin into collateral, BTC participation in BTC’s defects will increase exponentially.
Since 2024 Stagning capital is no longer allowed. It is the key to flourishing in tomorrow’s distributed economy that Bitcoin works smarter without giving up custody. Platforms such as Lombard Finance are changing Bitcoin from static saving to dynamic opportunities by bridging tradition and innovation. It is time to operate the BTC.