Bitcoin has long been seen as a store of value that people buy and hold for long periods. Most holders keep it idle, waiting for its price to increase, but Lorenzo Protocol changes this mindset. The protocol allows Bitcoin to become an active income-generating asset on-chain, combining staking, yield opportunities, automated strategies, and governance in a single system. By December 2025, it reaches over a billion dollars in total value locked, showing that users are ready to put their Bitcoin to work without compromising security or control.
The first key component of Lorenzo is liquid staking. Users deposit Bitcoin and receive stBTC, a token that grows through staking rewards while remaining fully liquid. This means stBTC can be moved, reinvested, or used in other DeFi protocols without losing its value relative to Bitcoin. The peg between stBTC and BTC is maintained with precision, ensuring users earn income while retaining full flexibility. This approach allows holders to make their Bitcoin productive without locking it away or giving up control.
The second layer of the protocol introduces enzoBTC. This fully backed token is designed for cross-chain mobility and composability. It allows Bitcoin to participate in multiple DeFi ecosystems, such as lending pools, liquidity vaults, and automated yield strategies. enzoBTC ensures that users can earn interest, provide liquidity, and explore new opportunities while their core Bitcoin holdings remain safe and accessible. This combination of mobility and yield creates a versatile toolkit for users who want more than passive holding.
One of the most advanced features of Lorenzo is its On-Chain Traded Funds or OTFs. These tokenized funds are managed entirely through smart contracts, running sophisticated strategies automatically. OTFs can implement carry trades, volatility harvesting, and quant-driven predictive models. Some structured OTFs offer principal protection while allowing users to capture upside when Bitcoin trades within specific ranges. By depositing Bitcoin, users receive tokens representing their share of the fund, which can be redeemed or traded at any time on exchanges such as Binance. This system makes complex financial strategies accessible to ordinary users without requiring specialized knowledge.
The BANK token is the economic engine of the protocol. Out of a total supply of 2.1 billion, approximately 527 million tokens are circulating by the end of 2025. BANK is used to increase APY in OTFs, gain early access to new products, and support liquidity across the system. The token aligns incentives for all participants, rewarding long-term engagement and ensuring smoother operations within the ecosystem.
Governance is handled through veBANK. Users can lock their BANK tokens for a chosen duration to mint veBANK, which determines voting power. Longer locks grant greater influence, encouraging long-term participation and responsibility. veBANK holders vote on new OTF strategies, changes to risk protocols, and chain expansion plans. This ensures that the protocol is guided by committed stakeholders rather than short-term speculators, maintaining integrity and stability within Lorenzo.
Risk management is another crucial aspect of the protocol. OTFs include principal protection features and automated rebalancing to maintain optimized exposure. Hedging strategies help reduce potential losses during market volatility. These mechanisms allow users to deploy Bitcoin actively while minimizing risk, creating a balance between earning potential and safety.
By December 2025, Lorenzo surpasses a billion dollars in total value locked, demonstrating its widespread adoption. Builders, traders, and holders all participate in the protocol, signaling a shift from passive Bitcoin storage to active income generation. The combination of liquid staking, cross-chain assets, OTF strategies, BANK tokens, and veBANK governance establishes a comprehensive system for predictable income, security, and flexibility. Lorenzo Protocol has redefined the potential of Bitcoin as more than a static store of value, making it an active, strategic income machine for the next generation of holders.
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