Learning Aave & Lombard BTCFi Integration

Guide for integrating Bitcoin Finance protocols on Base and Sui networks

📚 Start Learning BTCFi Integration

Protocol Deep Dive

Understanding Aave and Lombard Finance architecture and capabilities

Aave Protocol

V3/V4
Decentralized Lending Protocol
Explore Documentation

Lombard Finance

LBTC
Liquid Bitcoin Staking

Role: Liquid staked Bitcoin via Babylon protocol

Explore Documentation

BTCFi Ecosystem

Integration
Bitcoin Finance Layer

Role: Bridge Bitcoin into DeFi ecosystem

Networks: Base, Ethereum, Arbitrum, Sui

✓ Cross-chain Bitcoin utilization
✓ Yield generation strategies
✓ Composable DeFi protocols
✓ Advanced integrations
View Integration Guides

Protocol Architecture

Aave V4 Hub & Spoke

Modular lending markets with specialized functionality per chain

LBTC Liquid Staking

Babylon protocol enables secure Bitcoin staking with tradeable tokens

Network Integration Guides

Step-by-step technical guides for integrating with Aave and Lombard on different networks

Base Network Integration

Base

Aave V3 Setup on Base

npm install @aave/react @aave/contract-helpers ethers@5

// Key contract addresses
const POOL_ADDRESS = "0x18cd499e3d7ed42feba981ac9236a278e4cdc2ee";
const DATA_PROVIDER = "0x2d8A3C5677189723C4cB8873CfC9C8976FDF38Ac";

Prerequisites: Base RPC endpoint, Wallet connection, Contract addresses

Lombard LBTC Integration

npm install @lombard.finance/sdk viem@^2.23.15

// Initialize Lombard SDK
const signature = await signStakeAndBakeMessage({
  userDestinationAddress: address,
  chainId: 8453
});

Chain ID: 8453 (Base), Wallets: Base wallet + Bitcoin wallet required

Sui Network Integration

Sui

First Non-EVM LBTC Integration

Supported Wallets: Sui Wallet, Phantom, OKX

DeFi Integrations: SuiLend, Cetus, BlueFin, Navi Protocol

✓ Native Move language support
✓ High throughput transactions
✓ Low transaction costs

Technical Documentation Hub

Complete SDK documentation, API references, and developer resources

Learning Resources

Comprehensive guides from beginner to advanced BTCFi development

🌱 Beginner Resources

What is BTCFi?

Understanding Bitcoin Finance integration into DeFi protocols and how it unlocks new yield opportunities for Bitcoin holders.

⏱️ 10 min read Beginner

Liquid Bitcoin Staking

Learn how to stake BTC and receive tradeable liquid tokens like LBTC that maintain exposure while earning yield.

⏱️ 15 min read Beginner

Aave Lending Basics

Introduction to supplying and borrowing in non-custodial lending protocols with programmable interest rates.

⏱️ 12 min read Beginner

📈 Intermediate Resources

LBTC Yield Strategies

Advanced strategies for maximizing returns across multiple DeFi protocols using liquid staked Bitcoin.

⏱️ 20 min read Intermediate

Aave V4 Architecture

Understanding the new Hub and Spoke modular design and how it enables specialized lending markets.

⏱️ 25 min read Intermediate

🚀 Advanced Resources

Custom Spoke Development

Build specialized Aave V4 lending markets with custom logic and risk parameters for specific use cases.

⏱️ 45 min read Advanced

Cross-Chain BTCFi

Multi-network yield optimization strategies and cross-chain arbitrage opportunities in BTCFi.

⏱️ 35 min read Advanced

Working Code Examples

Copy-paste ready code snippets for immediate implementation

Aave Supply Operation

Base Network
// Supply LBTC to Aave on Base
const [supply] = useAaveSupply();

const result = await supply({
  market: '0x18cd499e3d7ed42feba981ac9236a278e4cdc2ee', // Base Pool
  token: '0x...', // LBTC address
  amount: '1000000000000000000', // 1 LBTC
  user: userAddress
});

console.log('Supply successful:', result);

Supply LBTC tokens to Aave lending pool on Base network

Lombard Staking Setup

Multi-Chain
// Generate Bitcoin deposit address for LBTC staking
const signature = await signStakeAndBakeMessage({
  userDestinationAddress: address,
  chainId: 8453 // Base
});

const depositAddress = await generateDepositBtcAddress({
  address: userAddress,
  chainId: 8453,
  signature: signature
});

console.log('Deposit BTC to:', depositAddress);

Initialize Lombard SDK and generate deposit address for LBTC minting

Cross-Chain Yield Strategy

Base + Sui
// Multi-network LBTC yield optimization
// 1. Mint LBTC on Base
const baseLBTC = await lombard.mintLBTC({
  network: 'base',
  amount: btcAmount
});

// 2. Bridge to Sui for additional yield
const suiYield = await lombard.bridgeToSui({
  amount: baseLBTC.amount,
  targetProtocol: 'SuiLend'
});

console.log('Cross-chain yield active');

Advanced cross-chain strategy combining Base Aave lending with Sui DeFi yields

Best Practices & Tips

⚙️

Gas Optimization

Batch multiple operations and use appropriate gas limits for different networks

🔒

Security First

Always validate contract addresses and implement proper error handling

📊

Monitor Yields

Track APY changes and rebalance positions for optimal returns

Ready to Build with BTCFi?

Start integrating Aave and Lombard protocols in your applications today