BTC.b Technical Transition to Lombard’s Architecture

BTC.b, the established BTC asset is transitioning to Lombard’s structure and product suite, enabling multi-chain growth and deeper DeFi integrations. Your tokens, balances, and integrations stay unchanged. No motion required from holders, and elective actions for protocols.

Overview

BTC.b has been a cornerstone of Avalanche DeFi since 2022, with ~$550M in circulation and deep integrations throughout Aave, GMX, BENQI, and LFJ. Lombard has acquired the infrastructure and associated belongings of BTC.b, and the Lombard Protocol will assume accountability for BTC.b’s bridge operations and safety structure whereas sustaining full continuity for current customers and integrations. BTC.b will first transition to the identical trusted structure as LBTC, earlier than Lombard coordinates its distribution and integration throughout choose chains and main DeFi protocols.

Working completely on Lombard’s clear, verifiable protocol structure, BTC.b shall be a next-generation Bitcoin asset constructed for the decentralized financial system—permissionless, non-custodial, and safe—BTC.b will carry institutional-grade safety to onchain Bitcoin with out the institutional gatekeepers.

This transition accomplishes three objectives:

1. Augmented Safety: Multi-layered structure with decentralized validation by a consortium of main Establishments

2. Multi-Chain Growth: Native deployment to Ethereum, Katana, MegaETH and Solana in its preliminary section

3. Improved Entry: Permissionless minting immediately from native BTC by the Lombard App, the place it’ll be accessible alongside LBTC

What Stays the Identical

For customers and protocols, the quick actuality is straightforward: BTC.b stays the identical token, and balances, addresses, and integrations stay unchanged. What modifications is BTC.b’s development alternatives: new chains, deeper liquidity, expanded DeFi integrations and alternatives, and a cleaner path for builders to combine native BTC into Apps by Lombard’s SDK.

For Customers:

• Identical token: Contract tackle, image, and title stay an identical

• Identical backing: 1:1 native BTC reserves with no rehypothecation or staking

• Identical balances: All holdings, addresses, and pockets integrations unchanged

• Identical integrations: Aave, GMX, BENQI, LFJ, and all DeFi protocols proceed working usually

For Protocols:

• Contract addresses stay unchanged

• Protocols should now not name the ‘unwrap’ operate on the BTC.b sensible contract to withdraw to native Bitcoin. Because the BTC.b contract is immutable, a brand new Lombard contract should be used for this goal.

  • The earlier ‘unwrap’ operate anticipated BTC to be withdrawn to a particular tackle generated by Core Pockets from the identical seed because the Avalanche tackle.

  • Lombard requires you to explicitly present the recipient within the ‘redeemForBTC’ operate to a newly deployed `AssetRouter` sensible contract.

• Normal value feeds proceed functioning

• Proof of reserve feeds will should be up to date to Lombard-based feeds when obtainable from Chainlink

• Current liquidity swimming pools and lending markets unaffected

The BTC.b you maintain immediately is the BTC.b you may maintain as soon as the transition completes in This fall. That is an infrastructure improve, not a token migration.

What’s New

Multi-Chain Growth

In its preliminary section, BTC.b will broaden past Avalanche to Ethereum mainnet, Katana, MegaETH and Solana.

Direct Minting

Anybody can mint BTC.b immediately from native Bitcoin by the Lombard App—no intermediaries, no KYC, no geographic restrictions (aside from sanctioned jurisdictions).

SDK Integration

BTC.b joins the Lombard’s SDK, enabling builders to supply customers the next:

• Native BTC deposits & one-click Bitcoin yield entry inside associate purposes

• Native pockets integrations (already dwell with Binance and Bybit)

• Streamlined developer implementation

• Unified vault merchandise throughout BTC.b and LBTC

Augmented Safety Structure

The transition implements a trust-minimized, multi-layered safety mannequin detailed within the subsequent part.

Technical Structure: What’s Altering

The present Avalanche bridge makes use of Intel SGX enclaves with a Warden community to index Bitcoin and coordinate transactions. The brand new structure implements a number of unbiased safety layers with decentralized validation, and is designed to scale BTC.b throughout a number of chains whereas preserving verifiability and operational self-discipline.

Structure Comparability

Present Mannequin (Avalanche Bridge):

• SGX enclave-based key isolation

• Warden community for multi-party approval

• Centralized bridge operations

New Mannequin (Lombard Protocol):

• {Hardware} Safety Module (HSM) backed key administration

• 15-member Safety Consortium with BFT consensus

• Twin-layer verification by Cubist Bascule and Lombard Consortium

• Byzantine fault-tolerant Lombard Ledger for traceability and transparency

Present State

New State

Why This Structure Issues

The brand new safety mannequin offers:

• No single level of failure: Requires majority consensus throughout 15 unbiased validators

• Protection in depth: 4 unbiased safety layers that should all validate operations

• Clear verification: Actual-time Proof of Reserve by Chainlink feeds

• {Hardware}-based safety: Safety of keys is rooted in Cubist’s vHSM (FIPS 140 HSM + Nitro Enclave)

• Cross-chain integrity: Impartial collateral verification on each chain

• Impartial third-party audits: Safety structure and sensible contracts audited by OpenZeppelin, Veridise, and Halborn. All audits are publicly obtainable .

Safety Mannequin Deep Dive

Layer 1: Decentralized Validation

The Safety Consortium replaces the Warden community with 15 unbiased digital asset establishments together with OKX, Galaxy, DCG, Wintermute, Figment, Kiln, Antpool, F2Pool, and Kraken. This Proof-of-Authority community operates the Lombard Ledger, a Byzantine fault-tolerant consensus layer that data all protocol operations transparently onchain.

Each transaction requires majority consensus amongst validators, eliminating single factors of failure.

Layer 2: HSM-Backed Key Administration

Within the new safety mannequin, the Safety Consortium members use Cubist’s CubeSigner platform to handle keys and signal transactions. Not like within the earlier mannequin, the place SGX enclaves had been used to reconstruct keys and coordinate Warden approvals, Consortium members signal transactions however by no means have entry to secret key materials. As an alternative, keys stay in Cubist’s safe {hardware}, which mixes FIPS 140 HSMs and Nitro Enclaves to supply enhanced safety. Furthermore, these keys are additional locked down by a number of safety insurance policies, which limit the Consortium members to solely signing particular sorts of transactions (e.g., mints backed by deposits) authorized by a majority of the events.

Layer 3: Governance Insurance policies

A number of safety insurance policies govern key utilization:

• Timelocks: Enforced delays for delicate operations

• Multi-Social gathering Approval (MPA): A number of consortium members should approve each transaction and coverage change

• Transaction restrictions: Keys can solely signal particular pre-approved transaction varieties

Layer 4: Impartial Bridge Verification

Two unbiased programs confirm all operations:

• Cubist’s Bascule Drawbridge: Verifies collateral consistency throughout Bitcoin and vacation spot chains (Avalanche C-Chain, Ethereum, and so forth.)

• Chainlink CCIP: Verifies collateral throughout chains the place BTC.b is bridged, by offering safe cross-chain messaging and real-time Proof of Reserve verification

This dual-verification method ensures 1:1 backing by unbiased auditing layers.

Deposit Circulation

1. Authenticated Deposits: Customers deposit BTC to deterministic addresses that encode their vacation spot EVM tackle on the Avalanche C-Chain. This allows tackle verification and offers phishing safety.

2. Consensus Validation: Safety Consortium validates and notarizes the deposit transaction by BFT consensus on Lombard Ledger.

3. Twin Verification: Each Bascule and CCIP independently affirm the collateral backing.

4. Minting: BTC.b tokens are minted to the person’s specified tackle in any case validations go.

Withdrawals (burns) comply with the identical multi-layer validation course of in reverse.

For Builders: Integration Updates

Avalanche Builders

While contract addresses stay the identical, the BTC redemption move has modified. The earlier `unwrap` operate is now depreciated and builders should use the brand new Lombard adapter for redemptions.

Non-compulsory updates:

Core Pockets Customers

The Lombard SDK shall be embedded natively inside Core Pockets on Day 1, enabling customers to get BTC.b on Core Pockets.

New Integrations

The Lombard SDK offers easy integration for protocols, wallets, and platforms:

Timeline

Present Standing: Migration underway with testing and safety audits in progress

Anticipated Launch: This fall 2024

Transition Course of:

1. Ultimate safety audits completion

2. Mainnet deployment and verification interval

3. Seamless cutover with minimal user-facing downtime

4. Submit-launch monitoring and assist

Each Lombard and Avalanche groups will present common updates by official channels as milestones are accomplished. Subscribe to official channels for detailed progress updates.

BTC.b will proceed serving as Avalanche’s main Bitcoin bridge whereas increasing to grow to be a really multi-chain Bitcoin asset with institutional-grade safety and permissionless entry.

FAQ

Do I have to do something with my BTC.b? No. Your tokens stay unchanged and require no motion.

Will there be any downtime? The transition is designed for seamless cutover with minimal interruption to transfers or integrations. It’s anticipated that minting and redeeming BTC.b is not going to be potential for as much as 2 hours solely. Within the occasion {that a} transaction is shipped through the cutover customers will expertise a slight delay, and shouldn’t fear about lack of funds.

What if I’ve BTC.b in a lending protocol? Your positions proceed usually. Protocol integrations are unaffected.

The place can I get technical assist? Communicate to Lombard representatives through Discord, or the Intercom characteristic on the web site.

For questions on this transition, contact Lombard through Discord, or the Intercom characteristic on the web site. For partnership inquiries, go to lombard.finance.