Bitcoin liquid staking protocol Lombard Finance has partnered with EigenLayer and the Eigen Foundation to make Bitcoin restaking available within EigenLayer’s Ethereum-based restaking ecosystem. Through this integration, Lombard’s liquid-staked bitcoin token LBTC, an Ethereum-native representation of staked BTC, becomes the first Bitcoin-backed asset accepted in EigenLayer, allowing it to be used as collateral to secure EigenLayer’s actively validated services (AVSs) such as bridges, oracles, data-availability layers, and cross-chain infrastructure. The Eigen Foundation plans to support adoption by incentivizing LBTC usage across EigenLayer, which already secures hundreds of AVSs and tens of thousands of staking addresses. The design creates a “dual-yield” structure for Bitcoin holders: BTC is staked via Babylon to earn a base yield, then represented as LBTC and restaked on EigenLayer for additional rewards while simultaneously helping secure decentralized services on Ethereum and beyond. Lombard and EigenLayer say they are also working on slashing and risk management mechanisms specific to Bitcoin restaking, and are collaborating with LayerZero on a Decentralized Validation Node to improve cross-chain data availability, aligning with EigenLayer’s modular, multi-chain roadmap. Strategically, the partnership is framed as a step in shifting Bitcoin from a largely passive store-of-value asset into productive collateral that can actively secure modular blockchain infrastructure and DeFi applications, potentially drawing a portion of Bitcoin’s large market capitalization into the Ethereum restaking and AVS economy.

AI-generated background, compiled from web sources — not editorial content.

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