Lorenzo Protocol represents a new class of decentralized financial infrastructure designed to unlock Bitcoin’s passive potential while merging traditional finance structures with DeFi transparency. It provides a system for turning BTC into yield-bearing, liquid tokens that can circulate freely across the blockchain economy.
At its foundation, Lorenzo allows users to stake Bitcoin and receive synthetic representations such as stBTC or enzoBTC, which remain tradable and composable across DeFi ecosystems. This means holders can earn rewards from Bitcoin staking while maintaining full liquidity — a feature previously impossible with conventional staking methods.
Beyond liquidity, Lorenzo builds an on-chain asset-management layer that mirrors institutional-grade financial products. Its USD1+ On-Chain Traded Fund (OTF) aggregates diversified yields from multiple sources including DeFi protocols, algorithmic strategies, and tokenized real-world assets. This creates a blockchain-native alternative to traditional fund management, giving investors programmable access to multi-asset portfolios.
The protocol’s Financial Abstraction Layer (FAL) simplifies complex yield routes into transparent, auditable structures. Through this, Lorenzo eliminates reliance on centralized intermediaries and makes advanced yield strategies accessible to both retail and institutional participants.
Governance is driven by the BANK token — empowering holders with voting rights, staking incentives, and governance over protocol upgrades. BANK anchors the ecosystem’s sustainability by aligning incentives among liquidity providers, fund managers, and the broader community.
In essence, Lorenzo Protocol transforms Bitcoin from a static store of value into a dynamic, yield-driven financial engine. By fusing BTC liquidity, on-chain funds, and transparent governance, it redefines how capital flows through the decentralized financial world — bridging the gap between legacy systems and the emerging digital economy.
