$BANK | Key Features of $stBTC
$stBTC is designed to let Bitcoin work without locking it away.
At its core, $stBTC represents your staked BTC principal in liquid form. While your BTC continues earning staking yield, you retain full flexibility. $stBTC can be traded, used as collateral, or deployed across DeFi, giving you liquidity without sacrificing returns.
A key innovation is Lorenzo’s dual-token structure, which separates ownership from yield:
• Liquid Principal Tokens (LPTs) – These represent the original staked BTC principal, commonly referred to as $stBTC.
• Yield Accruing Tokens (YATs) – These capture the staking rewards independently, unlocking advanced strategies such as yield trading, leverage, or circular staking.
The long-term goal is even more important. By leveraging native Bitcoin staking solutions like Babylon, Lorenzo aims to eliminate wrapping and custodial risk entirely. Users stake native BTC while maintaining self-custody, dramatically reducing counterparty risk compared to wrapped assets or centralized platforms.
This is Bitcoin liquidity, yield, and sovereignty working together.
