đš Ledger launches âBTC Yieldâ so Bitcoin holders can finally earn yield without leaving self-custody
đ§ Iâm seeing Ledger push the âproductive Bitcoinâ narrative forward by launching a new feature called BTC Yield inside the Ledger Wallet app.
đĄïž The big deal is that I can earn yield on BTC without giving up my keys and without sending funds to a centralized exchange, since it stays inside the Ledger self-custody environment.
đČ The yield option is accessed through the Figment dApp inside the Discover section, where I can deposit BTC and receive LBTC by Lombard (1:1 backed with Bitcoin).
đ The flow is simple: I deposit BTC â I receive LBTC â and over time LBTC increases in BTC terms, meaning my redeemable BTC value grows as rewards accumulate.
âïž The yield itself comes from the Babylon Bitcoin staking protocol, where Bitcoin is used as economic security to support other networks without the traditional âunlockingâ model people expect from staking.
đïž Ledger is basically the distribution layer here, Figment runs the infrastructure side, and Lombard provides the yield-bearing BTC asset.
â ïž But itâs not risk-free, since thereâs no guaranteed APY, plus exposure to smart contract risk and Babylon design risks like slashing mechanics.
đ§ My takeaway: this is one of the biggest mainstream experiments yet for BTC yield, and if it works, it could bring DeFi-style yield to long-term Bitcoin holders without killing the self-custody philosophy.
