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This is worth watching for $LBTC depegging events if we saw significant fear in the market. Declining liquidity and limited EVM exits are never bullish, esp if we got a rapid correction on $BTC. 👇👇

12 hours ago
happy to be wrong, but is anyone following the @Lombard_Finance situation?
Their supply dropped from 21k BTC to 13.8k BTC between May and August, right after their ICO announcement with a $450m valuation (wayy to high if you look at their close competitor, with higher tvl)
Lombard seems to have shut down their LBTC exit channel to EVM; $LBTC can only be converted to mainnet BTC.
It looks like they’re worried about losing TVL and are shifting away from EVM solutions, focusing more on Bitcoin, especially with their SDK dedicated to mainnet staking rather than LBTC conversions.
I checked their onchain liquidity and it’s shrinking. Maybe it’s reasonable to expect that a depeg event could happen on $LBTC.


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