Lorenzo (BANK): Making Bitcoin Work Smarter
What is Lorenzo (BANK)?
Lorenzo (BANK) is a platform that allows Bitcoin holders to earn rewards by staking their BTC and using it in DeFi applications. It introduces two main tokens:
● stBTC: This token represents liquid staked Bitcoin. When you stake your BTC through Lorenzo, you receive stBTC, which earns rewards over time.
● enzoBTC: This is a wrapped version of Bitcoin that can be used in various DeFi platforms. It's like having a digital version of cash that you can use across different blockchain networks.
By using these tokens, Lorenzo Protocol helps Bitcoin holders make their assets more productive.
Who Created Lorenzo (BANK)?
Founded in 2022 by Matt Ye (CEO) and Fan Sang (CTO), Lorenzo Protocol boasts a team of professionals dedicated to advancing Bitcoin's role in DeFi. Other key team members include Tad Tobar (COO) and Toby Yu (CFO).
What VCs Back Lorenzo (BANK)?
In its seed funding round on May 1, 2024, Lorenzo Protocol attracted investments from notable venture capital firms, including HTX Ventures, Yzi Labs, ArkStream, Geekcartel, Symbolic Capital, 300DAO, Waterdrip Capital, D1 Ventures, DHVC, MH Ventures, NGC Ventures, Foresight Ventures, and ABCDE Capital.
How Lorenzo (BANK) Works
Lorenzo Protocol is designed to enhance Bitcoin's utility within decentralized finance without compromising its security. This is achieved through a process of liquid staking (stBTC) and wrapped BTC tokens (enzoBTC).
stBTC: Liquid Staking Token
stBTC represents a tokenized form of staked Bitcoin within the Lorenzo Protocol. When users stake their BTC into the Babylon Yield Vault, they receive stBTC in return. This token serves as a receipt for the staked BTC and can be freely traded or used within the Lorenzo ecosystem.
Key Features of stBTC:
● Minting:
○ The minting of stBTC from native BTC is a decentralized process. Lorenzo employs custodial institutions like Cobo, Ceffu, and Chainup to ensure the security of the staked BTC.
○ The Lorenzo Chain validates the staking operations and mints stBTC accordingly.
○ Omnichain interoperability is enabled through protocols like Wormhole and LayerZero, allowing stBTC to interact with multiple blockchains beyond the Lorenzo ecosystem.
● Yield Generation: Holders of stBTC receive Yield Accruing Tokens (YATs), which represent the staking rewards earned over time.
● Liquidity: stBTC maintains the liquidity of the staked BTC, allowing users to trade or utilize it in various DeFi applications without losing exposure to the underlying asset.
● Redemption: At the end of the staking period, users can burn their stBTC to redeem the original BTC along with the accrued rewards.
enzoBTC: Wrapped Bitcoin Standard
enzoBTC is a wrapped version of Bitcoin issued by Lorenzo Protocol, designed to bridge the gap between Bitcoin and DeFi platforms. Users deposit Bitcoin or equivalent assets such as wBTC into Lorenzo, receiving enzoBTC in return. enzoBTC is then deposited into Lorenzo yield vaults, where it earns rewards. Upon staking enzoBTC, users receive stBTC. At the end of the staking period, users can redeem their stBTC to restore the liquidity of enzoBTC, ensuring they get back their initial Bitcoin deposit.
Key Features of enzoBTC:
● DeFi Integration: enzoBTC can be used as collateral in various DeFi applications, such as lending, borrowing, and yield farming, expanding the utility of BTC beyond traditional use cases.
● Ecosystem Access: Holding enzoBTC grants users access to all BTC financial instruments within the Lorenzo Protocol, enhancing the versatility of their holdings.
● Collateral Flexibility: Users can deposit enzoBTC into Lorenzo's Babylon Yield Vault to earn staking rewards from the Babylon protocol, providing an additional layer of yield generation.
● Redemption: Though enzoBTC can be redeemed for the original BTC after staking, it’s worth noting that enzoBTC may not directly generate yield like stBTC since it is a wrapped token standard.
Integration with Other Platforms
Lorenzo Protocol has partnered with several platforms to enhance its offerings:
● Babylon: Provides the underlying staking technology, allowing users to stake Bitcoin securely.
● Wormhole: Enables cross-chain transfers, so users can move their tokens between different blockchain networks like Ethereum and BNB Chain.
● Sui Network: Lorenzo has integrated with Sui to bring its tokens to more users, increasing liquidity and accessibility.
These partnerships help Lorenzo Protocol offer a seamless experience for users looking to maximize their Bitcoin's potential.
BANK Goes Live on Bitget
Lorenzo Protocol is paving the way for Bitcoin to truly thrive within the decentralized finance ecosystem. By offering a seamless integration of Bitcoin through enzoBTC and stBTC, Lorenzo opens up new avenues for Bitcoin holders to maximize their assets while maintaining security and transparency. The decentralized nature of the protocol ensures that users remain in control of their funds, while benefiting from the growing DeFi landscape.
For those looking to tap into the potential of Lorenzo's ecosystem, the native token, BANK, plays a crucial role in fueling the platform’s operations and governance. As Lorenzo continues to evolve, holding and trading BANK offers a unique opportunity to be part of this exciting journey. With the token listed on Bitget, now is the perfect time to explore the opportunities.
How to Trade BANK on Bitget
Listing time: April 18, 2025
Step 1: Go to BANKUSDT spot trading page
Step 2: Enter the amount and the type of order, then click Buy/Sell
For detailed instructions on how to spot trade in Bitget, please read The Uncensored Guide To Bitget Spot Trading
Trade BANK on Bitget now!
Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.
