For anyone using a Bitcoin yield product like stBTC, the real question is not how yield is generated, but how reliably you can return to native Bitcoin on its original chain. Lorenzo’s redemption process is intentionally designed to be slow, visible, and verifiable. Speed is sacrificed so that custody, finality, and security are not.
This is not a swap. It is a settlement cycle.
The process begins on the chain where the yield-bearing token lives. When a user decides to exit, they submit a redemption request to the relevant Lorenzo contract. The stBTC is burned or locked, and an on-chain event records the request along with the destination Bitcoin address. This step happens quickly, limited only by the block time of that chain.
What follows is the most important phase: a waiting period. This observation and challenge window typically lasts one to two days. During this time, the system’s monitoring infrastructure verifies the request and prepares the corresponding Bitcoin-side action. The delay exists for a reason. It creates space to detect errors, abnormal behavior, or compromised requests before irreversible settlement occurs on Bitcoin.
Once the window closes, the system prepares the unlock on Bitcoin itself. The BTC was originally placed in a Bitcoin-native locking structure with specific cryptographic conditions. Fulfilling those conditions requires coordination and validation, not discretion. This step can vary in duration depending on the staking or covenant design, but it is procedural rather than subjective.
The final phase is Bitcoin settlement. The unlock transaction is broadcast to the Bitcoin network and must receive confirmations before it is considered final. Under normal conditions, this takes anywhere from minutes to over an hour. When confirmations are complete, the BTC arrives at the user’s address. At that point, the process is finished.
In total, a standard redemption cycle is typically measured in days, not minutes. Three to five days is a reasonable expectation under normal network conditions. This timeline is deliberate. Instant redemptions would require pooled liquidity and custodial shortcuts. Lorenzo’s design avoids that by tying every redemption to actual Bitcoin locked under Bitcoin’s own rules.
The trade-off is simple and explicit. You wait longer, but you can follow every step. From the initial burn to the final Bitcoin transaction, the process is observable and auditable. The delay is not friction added by an intermediary. It is the cost of maintaining non-custodial integrity across chains.
A short story to close:
I explained this redemption flow to my friend 赵磊 over coffee. He frowned at the timeline and said it felt slow. Then he paused and laughed. “Bitcoin was never about speed anyway,” he said. “It was about knowing where your money actually is.” We didn’t talk about yield after that. We talked about patience.
@Lorenzo Protocol #lorenzoprotocol $BANK
