Lorenzo Protocol: Unlocking Bitcoin Liquidity with BTCFi Infrastructure
Lorenzo Protocol serves as the liquidity financial layer of Bitcoin, with the mission of "activating the value of digital gold," constructing the core BTCFi ecosystem that integrates liquid staking, re-staking, and derivatives. The project is led by Binance Labs and builds a modular architecture based on the Babylon protocol, achieving over $100 million TVL. Its native token $BANK triggered a 183-fold over-subscribed frenzy through the TGE on Binance Wallet.
The core advantage lies in the innovation of the "three-body architecture": built on Cosmos Ethermint to construct an EVM-compatible chain, synchronizing Bitcoin block information through zero-knowledge proof relays; issuing stBTC (liquid staking principal token) and enzoBTC (enhanced yield token), achieving a yield model with separated principal and interest; integrating the Wormhole cross-chain bridge, covering multi-chain networks like BNB Chain and Sui, accounting for 50% of Wormhole cross-chain BTC assets.
Ecosystem applications continue to expand, launching the OTF on-chain trading fund, integrating RWA and quantitative strategies, while also supporting secondary staking of stBTC to AVS for additional yield, with an annualized return of up to 8%-10%. The $BANK token combines governance, staking, and yield distribution functions, binding long-term users through the veBANK locking mechanism, with 8.4% of the tokens allocated for market liquidity incentives.
As a key hub connecting the Bitcoin mainnet and DeFi ecosystem, Lorenzo Protocol is driving the transformation of Bitcoin from a "store of value" to an "income-generating asset engine," and will further expand multi-chain deployment and institutional-level products in the future, solidifying its infrastructure position in the BTCFi field.
