Bitcoin has always been treated as a store of value a digital gold people hold for years waiting for appreciation. Most users never think about it as an income-generating tool. Lorenzo Protocol changes that mindset by making Bitcoin an active participant in the on-chain financial ecosystem. By the end of 2025 the protocol reaches over a billion dollars in total value locked showing that people are ready to let their assets work without sacrificing security or control.
The system begins with liquid staking. Traditional staking locks Bitcoin making it illiquid and hard to use. Lorenzo flips that model. When a user stakes BTC they mint stBTC. This token earns staking rewards while remaining tradeable or usable in other DeFi products. It is tightly pegged to Bitcoin ensuring users do not worry about price divergence. The goal is simple Bitcoin can earn while remaining flexible and ready for new strategies or trading.
Beyond stBTC there is enzoBTC. This token is fully backed cross-chain compatible and designed to flow through multiple DeFi applications. enzoBTC allows users to deposit liquidity earn interest or participate in automated yield vaults. Traders who want both holding and earning can do so without leaving the ecosystem. It brings mobility and yield together giving Bitcoin holders new ways to optimize returns without selling their core holdings.
The most sophisticated layer of Lorenzo is its On-Chain Traded Funds or OTFs. These are tokenized funds that run entirely on smart contracts. They implement strategies similar to hedge funds but remain transparent and accessible. One fund may perform carry trades borrowing at low rates to invest in derivatives. Another may exploit volatility using gamma scalping or delta-neutral hedging. Quant-driven OTFs analyze short-term market moves and adjust allocations automatically between spot BTC and futures. Structured products within OTFs offer protection to principal while providing upside when Bitcoin trades within a defined range. Users simply deposit and receive a token representing their share which can be redeemed or traded on Binance anytime. Complex strategies become simple and fully on-chain.
The BANK token fuels the entire ecosystem. Out of 2.1 billion total supply around 527 million circulate by December 2025. BANK is used to increase APY inside OTFs access new products early and support liquidity across the system. Its design aligns incentives and ensures participants benefit directly from network activity. The token is more than a governance tool it is the economic backbone of Lorenzo.
Governance is handled by veBANK. Users lock BANK for a chosen duration minting veBANK which determines voting power. Longer lock times result in greater influence encouraging long-term participation. The system ensures that protocol direction is guided by committed stakeholders not transient speculators. Decisions include adding new quant models adjusting incentives or extending to new chains. Governance becomes an active way for serious participants to shape the protocol.
By December 2025 Lorenzo Protocol crosses a billion-dollar TVL milestone reflecting widespread adoption. Bitcoin no longer sits idle. Builders use it for launching new products traders for hedging and yield and holders for passive income. Even when BANK trades stabilize users focus on the tools and utility rather than speculation. The ecosystem demonstrates that Bitcoin can evolve beyond a static asset and become an autonomous income generator on-chain.
Lorenzo’s combination of liquid staking cross-chain mobility OTF strategies and committed governance creates a new paradigm for Bitcoin. It shows that with smart design and careful incentives the largest cryptocurrency can serve multiple roles simultaneously. It is a platform for innovation security and opportunity all rolled into one.
Bitcoin holders now see that choosing between hodling or participating is no longer necessary. They can do both. The protocol empowers participants to take control and make Bitcoin an active part of the new on-chain economy.
@Lorenzo Protocol #lorenzoprotocol #LorenzoProtocol $BANK
