Lombard Vaults

Lombard Vaults receives a C+ risk grade (38/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — strong security infrastructure for a relatively new liquid Bitcoin protocol, but layered DeFi vault strategies introduce compounding smart contract risk. Lombard Vaults are actively managed DeFi strategies that deploy LBTC (a liquid Bitcoin staking token) into lending markets, liquidity pools, and yield protocols. With $28M in vault TVL across Ethereum and Base, Lombard offers Bitcoin holders a way to earn yield without selling BTC. The B- risk grade reflects strong security practices (audits, Chainlink PoR, Security Consortium) but notes the layered smart contract risk of routing capital through multiple external protocols.

The key risks identified for Lombard Vaults are: (1) Your Bitcoin is deposited into a liquid staking token (LBTC) and then routed through other DeFi protocols — if any of those protocols get hacked, your funds could be at risk. (2) LBTC's value depends on the BTC backing being maintained; if the custody system or Security Consortium is compromised, LBTC could lose its BTC peg. (3) The vault team actively manages strategies, so you are trusting their judgment on where to deploy your capital across DeFi protocols.

Lombard Vaults scores 38/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 5/20, Oracle Surface: 2/10, Documentation Gaps: 2/10, Track Record: 6/15, Scale Exposure: 7/10, Regulatory Risk: 4/10, Vitality Risk: 6/10. The highest risk area is Scale Exposure at 7/10.

Among 116 rated Yield protocols on Hindenrank, Lombard Vaults ranks #65 by safety (lowest risk score = safest). Its 38/100 risk score and C+ grade place it in the middle tier of Yield protocols.

Lombard Vaults scores 6/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.