BTC.b, a longtime BTC asset, is transitioning to Lombard's structure and product suite, enabling multi-chain enlargement and deeper DeFi integration. Tokens, balances, and integrations stay unchanged. No motion is required from the proprietor. Non-obligatory actions for protocols.
overview
BTC.b has been the cornerstone of Avalanche DeFi since 2022, with roughly $550 million in circulation and tight integration with Aave, GMX, BENQI, and LFJ. Lombard is buying BTC.b's infrastructure and associated property, and Lombard Protocol might be answerable for BTC.b's bridge operations and safety structure, whereas sustaining full continuity of current customers and integrations. BTC.b will first migrate to the identical trusted structure as LBTC, after which Lombard will orchestrate decentralization and integration throughout choose chains and main DeFi protocols.
Powered solely by Lombard's clear and verifiable protocol structure, BTC.b would be the subsequent technology Bitcoin asset constructed for the decentralized economic system. Allow-free, non-custodial, and safe. BTC.b brings institutional-level safety to on-chain Bitcoin with out institutional gatekeepers.
This migration accomplishes three targets:
Enhanced safety: Multi-tier structure with decentralized verification by a consortium of main establishments
Multichain extension: Within the preliminary stage, native deployment to Ethereum, Katana, Mega ETH, Solana
Improved entry: It is possible for you to to create permissionless mints straight from native BTC via the Lombard app and entry them alongside your LBTC.
issues that don't change
For customers and protocols, the quick actuality is easy. BTC.b will stay the identical token, balances, addresses, and integrations is not going to change. What modifications is the expansion alternative for BTC.b. New chains, deeper liquidity, expanded DeFi integrations and alternatives, and a cleaner path for builders to combine native BTC into their apps via Lombard's SDK.
For customers:
Identical token: Contract deal with, image and identify stay the identical
Identical backing: 1:1 native BTC reserve with out rehypothecation or staking
Identical steadiness: All holdings, addresses and pockets integrations stay unchanged
Identical integration: Aave, GMX, BENQI, LFJ, and all DeFi protocols proceed to work wonderful
For protocols:
Contract deal with stays unchanged
The protocol now not must name the BTC.b sensible contract’s “unwrap” perform to withdraw to native Bitcoin. For the reason that BTC.b contract is immutable, you need to use the brand new Lombard contract for this goal.
The earlier “unwrap” perform anticipated BTC to be withdrawn to a particular deal with generated by the core pockets from the identical seed because the Avalanche deal with.
In Lombard, a newly deployed “AssetRouter” sensible contract should be explicitly supplied with a recipient within the “redeemForBTC” perform.
Customary worth feed will proceed to work
Proof of Reserve feed should be up to date to Lombard-based feed if accessible from Chainlink
Current liquidity swimming pools and lending markets stay unaffected
The BTC.b you presently maintain is the BTC.b you’ll maintain after the transition is accomplished in This fall. That is an infrastructure improve, not a token migration.
what's new
Multi-chain enlargement
Within the preliminary levels, BTC.b will increase past Avalanche to Ethereum mainnet, Katana, MegaETH, and Solana.
direct casting
Anybody can mint BTC.b straight from native Bitcoin via the Lombard app. No intermediaries, no KYC, no geographic restrictions (besides in licensed jurisdictions).
SDK integration
BTC.b joins Lombard's SDK to allow builders to supply customers with the next options:
Native BTC deposits and one-click Bitcoin earnings entry inside companion functions
Native pockets integration (already works with Binance and Bybit)
Streamlined developer implementation
Built-in vault product throughout BTC.b and LBTC
Enhanced safety structure
This migration implements a multi-layered safety mannequin with minimal belief, which is detailed within the subsequent part.
Know-how structure: What's altering?
The present Avalanche bridge makes use of Intel SGX enclaves and the Warden community to index Bitcoin and coordinate transactions. The brand new structure implements a number of impartial safety layers with decentralized verification and is designed to scale BTC.b throughout a number of chains whereas sustaining verifiability and operational self-discipline.
Structure comparability
Present mannequin (avalanche bridge):
SGX enclave-based key separation
Observer Community for Multi-Celebration Approval
Centralized bridge operations
New mannequin (Lombard protocol):
Key administration with {hardware} safety modules (HSMs)
15-member safety consortium with BFT consensus
Twin layer validation with Cubist Bascule and Lombard Consortium
Byzantine fault-tolerant Lombard Ledger for traceability and transparency
present standing
new state
Why this structure issues
The brand new safety mannequin gives:
No single level of failure: Requires majority settlement amongst 15 impartial validators
Protection in depth: 4 impartial safety layers that require verification of all operations
Clear verification: Actual-time proof of reserve through Chainlink feed
{Hardware}-based safety: Key safety is rooted in Cubist's vHSM (FIPS 140 HSM + Nitro Enclave).
Cross-chain consistency: Unbiased collateral verification on all chains
Unbiased third social gathering audit: The safety structure and sensible contracts have been audited by OpenZeppelin, Veridise, and Halborn. All audits are public.
Safety mannequin particulars
Layer 1: Distributed verification
The safety consortium will exchange the Warden community with 15 impartial digital asset establishments, together with OKX, Galaxy, DCG, Wintermute, Figment, Kiln, Antpool, F2Pool, and Kraken. This Proof-of-Authority community operates the Lombard Ledger, a Byzantine fault-tolerant consensus layer that transparently information all protocol operations on-chain.
All transactions require majority settlement amongst validators, eliminating single factors of failure.
Layer 2: Key administration with HSM
Within the new safety mannequin, safety consortium members use Cubist's CubeSigner platform to handle keys and signal transactions. In contrast to earlier fashions that used SGX enclaves to reconstruct keys and coordinate Warden approval, consortium members signal transactions however wouldn’t have entry to the personal key materials. As a substitute, the keys stay in Cubist's safe {hardware}, which makes use of a mixture of FIPS 140 HSM and Nitro Enclave for added safety. Moreover, these keys are additional locked down by a number of safety insurance policies, proscribing consortium members from solely signing sure sorts of transactions authorised by a majority of the events (e.g., deposit-backed mints).
Layer 3: Governance coverage
A number of safety insurance policies govern key utilization.
Time lock: Imposing delays for delicate operations
Multi-party authorization (MPA): A number of consortium members should approve all transactions and coverage modifications
Buying and selling restrictions: Keys can solely signal sure pre-approved transaction sorts
Layer 4: Unbiased Bridge Verification
Two impartial methods confirm all operations.
Cubist drawbridge: Confirm collateral consistency throughout Bitcoin and vacation spot chains (Avalanche C chain, Ethereum, and so on.).
Chainlink CCIP: BTC.b validates collateral throughout the chains being bridged by offering safe cross-chain messaging and real-time proof-of-reserve validation.
This double-verification strategy ensures one-to-one backing by an impartial audit layer.
Deposit stream
Verified deposit: Customers deposit BTC to a deterministic deal with that encodes the vacation spot EVM deal with on the Avalanche C-chain. This enables deal with validation and protects in opposition to phishing.
Validating consensus: The Safety Consortium validates and notarizes deposit transactions via BFT consensus on the Lombard Ledger.
Double verification: Each Bascule and CCIP have independently verified corroboration.
casting: BTC.b tokens might be minted to the user-specified deal with after passing all validations.
Withdrawals (burns) observe the identical multi-layered verification course of in reverse.
For builders: Integration updates
avalanche developer
The contract deal with stays the identical, however the BTC redemption stream has modified. The earlier “unwrap” performance has been deprecated and builders should redeem it utilizing the brand new Lombard adapter.
Non-obligatory updates:
core pockets consumer
The Lombard SDK might be embedded natively inside the core pockets on day 1, permitting customers to amass BTC.b within the core pockets.
new integration
Lombard SDK gives easy integration of protocols, wallets, and platforms.
timeline
Present standing: Migration underway, testing and safety audit underway
Anticipated launch: This fall 2024
Migration course of:
Completion of ultimate safety audit
Mainnet deployment and verification interval
Seamless cutover with minimal downtime for customers
Put up-launch monitoring and help
Each the Lombard and Avalanche groups will present common updates via their official channels as milestones are accomplished. Please subscribe to our official channel for detailed progress updates.
BTC.b will proceed to function Avalanche's major Bitcoin bridge whereas increasing to turn out to be a real multi-chain Bitcoin asset with institutional-grade safety and permissionless entry.
FAQ
Do I must do something about my BTC.b? no. The token is not going to change, so that you don't must do something.
Will there be downtime? This migration is designed to supply a seamless cutover with minimal switch or integration disruption. Minting and redemption of BTC.b is predicted to be unavailable for as much as two hours. Customers will expertise a slight delay if transactions are submitted in the course of the cutover, however they won’t have to fret about shedding their funds.
What if my lending protocol has BTC.b? Your place will proceed as regular. Protocol integration will not be affected.
The place can I get technical help? Communicate with a Lombard consultant through Discord or the web site's intercom characteristic.
Please contact Lombard with any questions concerning this migration. Through Discord or through the web site's Intercom characteristic. For partnership inquiries, please go to lombard.finance.
