A new era of on-chain asset management! Lorenzo Protocol's three major breakthroughs in 2025 lead to an explosion in the BTCFi ecosystem.
In 2025, as a core force in the BTCFi field, Lorenzo Protocol, with its technological upgrades, ecological expansion, and market explosion, has become a benchmark project connecting CeFi and DeFi. Its 'on-chain bank' narrative continues to ignite industry attention. From token issuance to ecological landing, Lorenzo is reshaping the landscape of on-chain asset management with a modular architecture.
In terms of market performance, Lorenzo Protocol launched its exclusive TGE event on Binance Wallet in April. Even with a high threshold of 'purchase Alpha tokens within 30 days', it still achieved an impressive oversubscription of 183.29 times, demonstrating strong recognition from institutions and high-net-worth users. Its native token BANK has a total supply of 2.1 billion, with 48% allocated to the community treasury, using a DAO voting unlocking mechanism. The current circulating market value reaches $39.6 million, and the TVL steadily rises to $210 million, with pressure control and ecological incentive mechanisms receiving market affirmation.
At the technical and ecological level, Lorenzo has completed two key layouts: first, it officially joined the Move ecosystem, integrating stBTC to bring Bitcoin liquidity into the Sui network, and launched a multi-institution custody solution in conjunction with institutions like Cobo and Ceffu, ensuring asset safety while making stBTC the first yield-bearing BTC token launched on Sui; second, it has improved the 'three-body architecture,' constructing a Lido + Renzo + Pendle fusion model based on the Babylon protocol, supporting BTC staking, secondary staking, and principal-interest separation, with YAT yield tokens capable of achieving leveraged gaming in the options market, with a maximum potential return rate exceeding 20%.
In terms of product implementation, Lorenzo's universal financial abstraction layer has achieved the tokenization of CeFi yield strategies, supporting stablecoin arbitrage, RWA custody, and other diverse scenarios. Through the Vault API, standardized yield components can be packaged with one click, adapting to wallet, PayFi, and other upper-layer application integrations. As of the end of October, its OTF strategy fund's daily trading volume reached $180 million, with the BANK destruction mechanism and the fee repurchase model continuously enhancing the token's value capture capability.
From BTCFi infrastructure to an institutional-level on-chain asset management platform, the Lorenzo Protocol is activating Bitcoin's 'sleeping liquidity' through cross-ecosystem collaboration and product innovation. With the full-chain deployment and the expansion of the derivatives ecosystem in the future, it is expected to become a core competitor to the Web3 version of 'BlackRock + Goldman Sachs.'
