Bitcoin has long been recognized as a store of value, but in most portfolios it remains passive—secure, scarce, and largely unproductive. Lorenzo Protocol challenges that inertia by reframing Bitcoin not as dormant capital, but as an active on-chain asset. By blending institutional financial design with decentralized infrastructure, Lorenzo introduces a system where Bitcoin participates directly in staking, structured products, and programmable yield strategies.
By December 2025, Lorenzo Protocol had grown into a meaningful piece of on-chain infrastructure, with nearly $490 million in total value locked and more than 5,400 BTC actively staked. Its architecture spans over 20 blockchains, allowing capital to move efficiently across ecosystems, with particularly strong alignment inside the BNB ecosystem. This cross-chain footprint positions Lorenzo not as a single-chain product, but as a coordination layer for Bitcoin-based financial activity.
At the foundation of the protocol lies liquid Bitcoin staking. Rather than locking BTC into illiquid positions, users deposit Bitcoin and receive liquid staking tokens such as stBTC in return. These tokens accrue yield automatically while remaining fully composable across DeFi. stBTC integrates with Bitcoin security layers like Babylon, accumulates incentive points that enhance returns, and can be deployed directly into liquidity pools on BNB Chain. The result is capital efficiency: Bitcoin continues to earn staking rewards while remaining available for trading, hedging, or liquidity provision. Throughout 2025, Lorenzo expanded this design, increasing compatibility with DeFi primitives and unlocking new earning pathways for staked BTC.
Beyond staking, Lorenzo introduces On-Chain Traded Funds (OTFs), a modular framework for tokenized investment strategies. OTFs package complex financial logic—quantitative models, futures positioning, volatility strategies, and structured yield products—into transparent, tradable tokens. These products dynamically adjust exposure based on market conditions, balancing risk and return through algorithmic execution. Some OTFs emphasize stability via futures hedging, while others actively trade volatility using on-chain derivatives. More advanced structures blend principal protection with leveraged upside, offering asymmetric payoff profiles previously reserved for institutional desks. Every strategy operates on-chain, allowing users to audit positions, logic, and risk parameters in real time.
The BANK token functions as the protocol’s coordination and governance asset. Issued on BNB Smart Chain, BANK has a capped supply of 2.1 billion tokens, with approximately 527 million in circulation. Token holders can stake BANK to receive a share of protocol revenues generated from staking activity and OTF performance. For deeper participation, users may lock BANK to receive veBANK, a vote-escrowed position that amplifies governance influence based on lock duration. This mechanism prioritizes long-term alignment, ensuring that those shaping protocol decisions—such as fee allocation, product expansion, or system upgrades—are economically committed to its future. Enhancements rolled out in 2025 streamlined this governance flow and strengthened incentive alignment across participants.
Following a sharp appreciation in BANK’s price during November 2025, Lorenzo Protocol gained increased visibility among Binance Square users exploring advanced DeFi strategies. The platform now serves multiple audiences simultaneously: individual users constructing personalized yield stacks, developers designing custom OTF products, and traders seeking adaptive exposure across volatile markets. In doing so, Lorenzo does more than activate idle Bitcoin—it assembles a comprehensive financial toolkit that brings staking, structured products, and governance into a unified on-chain system.
Lorenzo Protocol represents a shift in how Bitcoin capital is deployed. Rather than remaining static, Bitcoin becomes programmable, composable, and productive without abandoning transparency or user control. It is not simply yield generation, but the financialization of Bitcoin itself, expressed through modern on-chain infrastructure.
@Lorenzo Protocol #LorenzoProtocol $BANK
