Historical bad-debt events
Lombard Finance's assessment for RD-F-067 — scored green on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
Zero historical bad-debt or socialized-loss events. Lombard security blog states explicitly: 'Since launch, Lombard has seen no depeg events.' No slashing events documented. Rekt DB shows no Lombard incidents (data cache rekt.incidents: []). Slashing risk is capped at 0.1% per slashing event per Lombard docs. Reframed for a BTC LST: 'bad-debt' equivalent would be socialized losses from Babylon slashing or LBTC backing shortfall — neither has occurred.
Sources #
- URLLBTC Security and Transparency — Lombard FinanceLombard security blog: 'Since launch, Lombard has seen no depeg events'retrieved 2026-05-05
- LBTC Risks — Lombard DocsLombard docs risk page: 'Slashing Risk (LOW): maximum exposure at 0.1% per event'retrieved 2026-05-05
- Lombard — DefiLlama Rekt Feed (data cache 2026-05-05)DefiLlama data cache: rekt.incidents: []retrieved 2026-05-05
Methodology #
Count and sum (USD) the number of documented bad-debt events where the protocol socialized losses across depositors.
See the full factor methodology and distribution across all protocols →