Lombard is not just about making you earn a little more BTC!

Most analyses of BTC DeFi have actually started from the wrong position. What everyone is focused on may be the entry returns, but they overlook the real variable that determines BTC behavior, which is exit friction!

When BTC is still a dormant asset, the yield is certainly important; but once BTC is repeatedly reused, embedded in multiple layers of protocols, and constrained by redemption windows and settlement cycles, it ceases to be profit-seeking capital and becomes long-term capital on the balance sheet. At this stage, the ability to exit smoothly is more critical than the level of APY.

This is also why the growth of BTC DeFi is shifting from inflow to reuse depth. Capital stays not because of higher returns, but because of lower uncertainty in exit.

The significance of Lombard is not to make BTC earn a little more, but to standardize the entry, circulation, and exit of BTC. Through $LBTC, the risks of redemption, settlement, and cross-chain, which are most susceptible to fragmentation, are centralized in a predictable exit layer.

When exits are predictable, BTC is willing to be reused in the long term; when reuse becomes reliable, capital will settle down. The issue with BTC DeFi is no longer how to bring BTC in, but rather who can let BTC exit cleanly under pressure, when yields shrink, and during rapid rebalancing.

The yield is just the title; the exit mechanism is the signal. What will truly retain BTC in the future will not be the highest APY, but the infrastructure that allows for the freedom to exit!

#KaitoYap @KaitoAI #Yap $BARD @Lombard_Finance #BARD