Starknet Teams Up with Lombard to Add Bitcoin Liquid Staking to DeFi

By: crypto economy|2025/05/15 23:45:05
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TL;DRStarknet added LBTC to its network, a 1:1 Bitcoin-backed token created by Lombard Finance for liquid staking.The integration lets users access DeFi applications using Bitcoin without moving funds from its original blockchain, expanding available tools.The network was also recognized as a Stage 1 ZK Rollup, reinforcing its security and decentralization within the Ethereum ecosystem.Starknet has integrated LBTC into its ecosystem, a liquid staking token backed 1:1 by native Bitcoin and developed by Lombard Finance. With this addition, the network aims to attract Bitcoin-backed liquidity and expand its DeFi tools within its Ethereum-based infrastructure.The arrival of LBTC on Starknet allows users to access decentralized financial products using Bitcoin without having to move their funds off the Bitcoin blockchain. This is made possible through a liquid staking mechanism, which locks the original BTC and issues equivalent tokens that can be used in various applications within the ecosystem. The approach combines Bitcoin’s strength as a store of value with the operational flexibility of DeFi solutions.Growing Interest in Bitcoin LiquidityThis type of integration is becoming increasingly common across multiple blockchains looking to capture Bitcoin liquidity to strengthen their decentralized markets. While Starknet brings in LBTC, other networks like Sui are advancing with similar projects, such as the recent introduction of sBTC, a synthetic version of Bitcoin designed for its native environment.A Milestone for the Starknet NetworkAlongside the LBTC announcement, Starknet reached a new technical milestone by being recognized as a Stage 1 ZK Rollup by L2BEAT, a specialized site that tracks scaling solutions for Ethereum. This upgrade means the network now operates as a pure rollup, with no external dependencies to validate its security. It enhances Starknet’s decentralization and reinforces its standing among zero-knowledge proof-based solutions.The interest in bringing Bitcoin liquidity into DeFi environments continues to grow, and platforms capable of offering reliable, efficient integrations stand to capture a significant share of that value flow. The addition of LBTC will strengthen Starknet’s DeFi capabilities and deepen the connection between Bitcoin and Ethereum.

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