1. Bitcoin Liquidity Finance Layer
Lorenzo is building a DeFi layer focused on Bitcoin liquidity.
It lets users stake their BTC and get liquid derivatives like stBTC (staking receipt) and enzoBTC (a wrapped BTC) as part of its ecosystem.
2. Multi-Chain / Cross-Chain Integration
Through a Wormhole integration, Lorenzo’s stBTC and enzoBTC gain multichain liquidity, making them usable on various blockchains.
This expands the usability of these Bitcoin-backed tokens across different ecosystems.
3. Asset Management & Yield Products
Lorenzo offers On-Chain Traded Funds (OTFs) using its Financial Abstraction Layer (FAL).
These OTFs are designed to package different yield-generating strategies (DeFi, real-world assets, trading) into tokenized products.
They have a product called USD1+ that seems to combine real-world assets (RWA) + DeFi yield + other strategies.
4. Token: BANK
The native token is $BANK.
BANK is used for governance, letting holders vote on protocol decisions.
There’s also a “veBANK” mechanism — staking BANK gives you governance power / voting rights.
5. Institutional Focus
Lorenzo brands itself as “institutional-grade” in its asset management.
Through its yield strategies and tokenized products, it’s aiming to make DeFi-style yield more accessible and efficient for both institutional and retail users.
6. Tokenomics & Supply
Circulating supply: ~526.8M BANK.
Max supply: ~2.1B BANK.
Launched on BNB Smart Chain (BEP-20) according to some sources.
Why #LorenzoProtocol
Maximizing BTC Capital Efficiency: Instead of just holding BTC, users can stake it and still use derivatives (stBTC / enzoBTC) to earn yield + participate in DeFi.
Cross-Chain Use: Because its BTC-derivatives are integrated across chains (via Wormhole), BTC liquidity isn’t trapped in just one ecosystem.
Yield Products for Everyone: With its OTFs, Lorenzo allows creation of diversified tokenized yield strategies — potentially useful for both DeFi power users and more risk-aware or institutional players.
Governance & Community: BANK holders get a say, aligning incentives between token holders and protocol growth.
Risks / Things to Watch Out For
As with any liquid staking / wrap protocol: smart-contract risk
Cross-chain bridging risk: bridging BTC derivatives has its own security considerations.
Market risk: value of derivative tokens (stBTC, enzoBTC) depends on BTC staking yields + demand.
Tokenomics risk: emissions, inflation, and how veBANK works could affect long-term incentives.
Current Status / Important Updates
Wormhole Integration: This is a big one — allows Lorenzo’s BTC assets to move across chains, increasing flexibility.
Partnerships / Products: They’re building not just for DeFi yield, but also for tokenized financial products.
Liquidity Growth: The Wormhole integration suggests they’re actively pushing for cross-chain liquidity and adoption. $BANK
