According to CoinMeta, Lombard announced that it will shift the revenue source of LBTC from Babylon Bitcoin collateral to a covered call option strategy managed by Bitwise, with a target net annualized yield of 2.5%, denominated in Bitcoin. This strategy will utilize up to 60% of the reserves held in LBTC, and the relevant Bitcoin will be managed by Anchorage Digital Bank and Kraken Institutional. The deployment will begin on a pilot basis with $10 million on the week of August 17th, and it is planned to complete the configuration for all existing LBTC holders by September without any action required from them.