LBTC transitions from Babylon Bitcoin staking to a covered-call strategy, aiming for a 2.5% net APY in Bitcoin terms.
Bitwise Lombard announced LBTC’s yield source will shift from Babylon Bitcoin staking to a covered-call options strategy, targeting a 2.5% net annual percentage yield denominated in Bitcoin. The new approach will utilize up to 60% of LBTC’s backing assets, held in custody by Anchorage Digital Bank and Kraken Institutional.
The transition begins with a $10 million pilot during the week of August 17, with full allocation expected by September. Existing LBTC holders are not required to take any action as the strategy rolls out. The move follows prior yield strategies focused on staking and institutional-grade custody solutions.
No immediate market reaction was specified for the strategy shift, which aims to enhance yield generation while maintaining asset security.