TradFi meets DeFi through Lombard and CapMoney Lombard team has announced a new partnership with the stablecoin protocol @capmoney_ , introducing a fresh primitive to the stablecoin sector. The 1st component is reminiscent of Ethena’s model: - Users mint the new stablecoin cUSD using USDC as collateral. - They can then stake cUSD to generate yield from various strategies, creating a yield-bearing stablecoin called stcUSD Stablecoins minted against cUSD are allocated to Vaults managed by risk curators. However, unlike traditional setups, these risk curators are not limited to onchain strategies. They can also execute offchain or even Web2-based strategies. This effectively enables uncollateralized lending, introducing the inherent risk of loss for those who entrust assets to these curators. ---------------- Here’s where the project’s 2nd major innovation comes in - insurance. A Vault only becomes operational once someone vouches for the risk curator with real capital. This means that if the curator mismanages funds or their strategy underperforms, the guarantor absorbs all financial losses. In return, the guarantor earns a share of the strategy’s profits. As a result, users’ funds remain protected under all circumstances. ----------------- This is where Lombard enters the picture. Lombard is contributing a portion of its LBTC to a Vault managed by Hyperithm, a firm with over 7 years of experience in HFT strategies. The technical infrastructure is provided by Symbiotic, a restaking protocol responsible for compliance and orchestration of financial flows. ----------------- Why This Partnership Matters Because in the future, Lombard can actively support many other DeFi and TradFi strategies and receive a reward for doing so. There are thousands, even tens of thousands, of strategies and companies executing them worldwide. All of them can come to Lombard for capital. This is the gateway to Bitcoin Capital Markets that the team has been talking about for the past few months. The doors to TradFi are starting to open for @Lombard_Finance