#البيتكوين The DeFi Sector’s Preferred Collateral? Here’s What Lombard Finance Says

Lombard Finance aims to produce a yield-bearing Bitcoin token, potentially unleashing a new wave of liquidity in the DeFi ecosystem.

There could be a war for control of the on-chain market. The question is: what is the preferred collateral in the decentralized finance (#DeFi) economy?

At the time of writing, DeFi protocols across all ecosystems have recorded nearly $132 billion in value, according to data from DeFiLlama, and are getting closer to their 2021 high of $175 billion every day. The majority of this promised money is in the form of ether (ETH) and derivatives like yield-bearing liquid ether tokens (stETH) and wrapped eETH (weETH), with wrapped Bitcoin (wBTC) and stablecoins as a whole competing for fourth and fifth place.

But the team behind Bitcoin-based DeFi protocol Lombard Finance is planning to shake things up with LBTC, a new liquid Bitcoin token. The idea, according to Lombard co-founder Jacob Phillips, is to dethrone ETH and stETH and install Bitcoin as the collateral of choice in the entire on-chain economy. “In centralized places, Bitcoin is the primary collateral. Why can’t that be the case in DeFi?” Phillips told CoinDesk in an interview. “Bitcoin only does one thing well, and that’s being a strong store of value. #Binance