Summary
LlamaRisk supports onboarding BTC.b to the Aave V4 Core Hub on Ethereum, conditional on the segregation of BTC custody between Lombard’s BTC.b and LBTC products, which are currently backed by a pooled custody structure. Lombard has confirmed that per-asset custody segregation is planned and is expected to be implemented within the next couple of weeks. While Lombard’s aggregate reserves are sufficient to fully collateralize both products, dedicated custody for BTC.b would ensure that its backing remains independent of LBTC-related exposures.
Beyond the above consideration, BTC.b benefits from robust administrative safeguards. Contract upgrades are subject to a 1-day timelock enforced by LombardTimeLock, with the executor controlled by Lombard’s 3/5 Safe multisig. The Bascule check is also enabled on the Ethereum BTC.b contract, providing an additional layer of verification for mints. The protocol also maintains an active bug bounty program, and recent audits have not identified any critical or high-severity findings. BTC.b currently has approximately $7.9M in DEX liquidity on Ethereum, nearly 100% of which is supplied by the Lombard team. While highly concentrated, this liquidity is relatively stable given its protocol-aligned nature and lower reliance on third-party LPs.
The full assessment can be found in its corresponding thread.
Aave V4 Specific Parameters
Spoke Parameters
| Chain | Hub | Spoke | Reserve | Collateral Factor | Max Liquidation Bonus | Borrowable | Collateral Risk | Liquidation Fee | Risk Premium Threshold | Receive Shares |
|---|---|---|---|---|---|---|---|---|---|---|
| Ethereum | Core Hub | Main Spoke | BTC.b | 78% | 5.55% | FALSE | 0 | 10% | 0 | TRUE |
Add and Draw Caps
| Chain | Hub | Spoke | Reserve | Add Cap | Draw Cap |
|---|---|---|---|---|---|
| Ethereum | Core Hub | Main Spoke | BTC.b | 200 | 0 |
Price feed Recommendation
We recommend using Chainlink’s BTC/USD SVR feed to price BTC.b on Aave V4.
Disclaimer
This review was independently prepared by LlamaRisk, a DeFi risk service provider funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.
The information provided should not be construed as legal, financial, tax, or professional advice.