Lombard, the leader in onchain Bitcoin Finance, is collaborating with Botanix, one of the most promising Bitcoin-native networks, to redefine how Bitcoin yield and liquidity flow across DeFi. By channeling liquidity from Lombard’s DeFi Vaults into Botanix, this collaboration strengthens Botanix’s ecosystem while delivering boosted yields for Lombard’s DeFi Vault users. This is another step forward for Lombard in its efforts to transform Bitcoin from static capital into the productive backbone of onchain markets.

Introducing Botanix

Botanix is a Bitcoin-based blockchain that unlocks Bitcoin Finance through decentralized applications.  This includes decentralized exchanges (DEXs), lending and borrowing protocols, and other DeFi applications. At the core of this ecosystem is stBTC, the new yield-bearing Bitcoin standard that delivers cold, hard yield backed by real economic activity. While these capabilities have long been available on Ethereum and other EVM-compatible chains, Botanix Labs is bringing this functionality to Bitcoin through the Botanix network.

Botanix is emerging as a key player in the onchain Bitcoin Finance category. Its model introduces a new standard for Bitcoin yield where gas fees are generated from real transactions and redistributed back to users, creating a sustainable and liquid yield mechanism. This approach has already delivered >30% returns on its native yield asset, stBTC. With over 10 million transactions processed and 50 BTC staked since launch, Botanix is proving how real economic activity can underpin yield and drive the growth of a Bitcoin-first financial ecosystem.

How It Works: Under the Hood

Through the collaboration, Lombard’s DeFi Vault allocates LBTC into the Botanix ecosystem. These assets earn a fixed return over a 90-day term, forming the baseline yield. On top of this, Botanix’s DeFi primitives — including its DEX and Vaults — provide additional upside, creating a layered yield profile.

Botanix gains access to a credible and liquid source of capital that supports its growth. Instead of yield being sourced from cyclical demand for leverage or emissions-heavy incentive models, it is underpinned by onchain activity and secured by a decentralized network. In practice, this turns LBTC into productive collateral that doesn’t just preserve Bitcoin’s upside but monetizes Bitcoin’s role as a foundational asset in emerging markets.

What It Means for Users

For Lombard users, the result is straightforward: stronger yields in DeFi Vaults, with APYs boosted to over 3% during the term. But the significance goes deeper. This collaboration demonstrates how LBTC scales beyond its native ~1% BTC yield into a productive layer that can support emerging Bitcoin-native economies.

By integrating directly with Botanix, Lombard shows that yield-bearing Bitcoin is not limited to passive staking returns — it can also serve as the liquidity for decentralized financial systems, amplifying returns for users while bootstrapping new economies.

Strategic Significance

This partnership represents the convergence of two complementary forces in Bitcoin Finance:

  • Lombard as the capital base and liquidity layer for Bitcoin Finance, with LBTC already onboarding $3 billion across 13 blockchains.
  • Botanix as the infrastructure channeling real economic activity into sustainable yield.

Together, they exemplify the shift from Bitcoin as idle collateral to Bitcoin as productive capital — an essential transformation if BTC is to become the backbone of global onchain markets.

Industry Impact

The Lombard × Botanix collaboration signals a broader trend in Bitcoin Finance: ecosystem-level collaboration. Instead of operating in silos, protocols are beginning to interlink liquidity and infrastructure to create sustainable, interoperable markets.

For institutions, this demonstrates that Bitcoin can now serve as collateral in structured, yield-bearing financial workflows that go beyond speculative trading. For users, it proves that decentralized primitives — such as Botanix’s DEX and Vaults — can generate real returns secured by Bitcoin, not inflated governance tokens or unsustainable flywheels.

This collaboration also highlights a new standard for the industry: yield models based on real activity, transparent risk allocation, and capital efficiency. In doing so, it sets a precedent for how Bitcoin can anchor cross-ecosystem integrations — much like stablecoins became the backbone of DeFi liquidity.

Looking Ahead

The Lombard × Botanix collaboration is only the beginning. By deploying LBTC into Botanix, Lombard strengthens its Vaults, supports Botanix’s ecosystem, and accelerates the growth of a Bitcoin-native financial system.

Bitcoin’s future is not to remain passive capital. It is to actively power the financial system of tomorrow — as the productive, neutral collateral layer that underwrites global liquidity.

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