@Lorenzo Protocol $BANK #LorenzoProtocol

Bitcoin has long been treated as “digital gold” — valuable to hold but idle in your wallet. Lorenzo Protocol changes that by turning BTC into an active, yield-bearing asset. In practice, users deposit Bitcoin into Lorenzo’s vaults and receive 1:1 tokens in return. For example, an enzoBTC token is minted when you deposit BTC (or wBTC), and it can be traded or used across multiple blockchains. You can then stake enzoBTC in Lorenzo’s restaking system (powered by the Babylon protocol) to get stBTC — a liquid staking receipt that automatically collects staking rewards.

Importantly, both enzoBTC and stBTC remain freely transferable and usable in DeFi, so your Bitcoin never stays idle. All deposits, reallocations, and rewards are handled by smart contracts, and every flow is transparent on-chain. In short, Lorenzo “makes BTC work” by letting it earn interest through diversified strategies, without ever losing the user’s original asset.

Key Components of Lorenzo’s Yield Engine

Liquid staking — Users lock BTC to mint stBTC or enzoBTC. These tokens always track 1:1 with your Bitcoin but earn yield. stBTC is issued by staking BTC into Lorenzo’s partner vaults (such as Babylon), automatically earning restaking rewards. enzoBTC is a wrapped Bitcoin token you can hold or deploy elsewhere in DeFi (even use as collateral) while it earns a share of vault yields. In effect, your BTC “works” by cycling through these tokens and vaults, compounding returns along the way.

On-Chain Traded Funds (OTFs)

On-Chain Traded Funds are tokenized investment funds built entirely on-chain. Instead of manually juggling multiple DeFi positions, users can hold a single OTF token that represents a basket of strategies. Lorenzo’s flagship OTF is USD1+, a money-market–style product that blends low-risk yield sources like tokenized treasuries and lending pools into one stablecoin-denominated token.

Other OTFs combine multiple approaches: some aim for steady fixed yields (similar to decentralized bonds), others rely on algorithmic futures or automated trading strategies, and some dynamically adjust allocations as market conditions change. For example, dynamic OTFs may shift capital between BTC staking and stablecoin yield when relative returns fluctuate. All OTFs operate fully on-chain, allowing users to track deposits, trades, and net asset value in real time.

BANK Token and Governance

The BANK token is Lorenzo’s native asset and the glue holding the ecosystem together. BANK is not just a speculative token — it powers governance and incentives. Holders can stake or lock BANK to vote on protocol proposals such as new funds, fee structures, and strategy updates, while also earning a share of protocol revenue. A portion of vault fees and rewards is distributed to BANK stakers.

Lorenzo uses a vote-escrow model known as veBANK. Locking BANK for longer periods increases voting power and unlocks bonus benefits. In practical terms, this creates a feedback loop: as more assets flow through Lorenzo and more yield is generated, demand for BANK grows — and BANK holders actively guide the protocol’s future.

Tokenomics Highlights

BANK runs on BNB Smart Chain with a fixed maximum supply of approximately 2.1 billion tokens. Only a portion is currently circulating, while the rest is reserved for ecosystem growth, incentives, and long-term development. Staking BANK can boost yields and provide early access to new strategies. Overall, BANK aligns both retail users and institutions with Lorenzo’s long-term success, acting as the social capital of this on-chain financial system.

Comprehensive On-Chain Asset Management

Lorenzo isn’t just another yield farm — it’s a structured, institutional-grade asset management layer built on-chain. By recreating familiar financial tools like funds, vaults, and diversified portfolios through smart contracts, Lorenzo makes advanced strategies accessible to anyone.

Risk and yield are separated: your principal BTC remains intact, while yield is tokenized and deployable. This enables advanced tactics such as selling yield separately or hedging exposure using derivatives. Every action is verifiable on-chain, eliminating black-box risk and increasing transparency. This level of automation and visibility brings real-world risk management concepts into DeFi, giving both retail users and institutions confidence to deploy capital at scale.

Growth and Outlook

Lorenzo’s momentum has been impressive. By mid-2025, the protocol surpassed hundreds of millions of dollars in total value locked, with vaults holding thousands of BTC across multiple chains. It has evolved into a multi-chain Bitcoin liquidity infrastructure spanning more than twenty blockchains, including major ecosystems beyond BNB Chain. Today, Lorenzo serves as a central hub for transforming Bitcoin into productive, interoperable assets across Web3.

Taken together, Lorenzo allows anyone to put idle Bitcoin to work in ways that were once reserved for hedge funds. Users can build custom OTFs, earn compounded yield through stBTC and enzoBTC, or move in and out of positions quickly as markets change. The result isn’t just higher returns — it’s a more efficient and liquid Bitcoin ecosystem.

Whether it’s wrapped BTC, on-chain funds, or the veBANK governance system that excites you most, Lorenzo Protocol represents a bold step toward merging CeFi discipline with DeFi transparency. Its growth suggests Bitcoin’s long-dormant potential in DeFi is finally being unlocked — bringing digital gold into an era of real, on-chain productivity.