What Is Lorenzo Protocol......?
The Lorenzo Protocol is a Bitcoin Liquid Finance Layer that aims to transform Bitcoin (BTC) into a more liquid and yield-generating asset within the decentralized finance (DeFi) ecosystem.
Key aspects of the Lorenzo Protocol include:
Functionality: It acts as a market where restaked BTC can be converted into liquid tokens, allowing users to earn yield while maintaining liquidity. It sits on top of Bitcoin staking/restaking infrastructure, such as Babylon.
Products: The protocol introduces liquid staked BTC tokens like stBTC and enzoBTC, which carry staking yield and can be used across various DeFi platforms.
Institutional Grade: Positioned as an institutional-grade platform, it aims to bridge traditional finance with the DeFi space through structured, transparent on-chain financial products.
On-Chain Traded Funds (OTFs): It brings real fund strategies on-chain with products like On-Chain Traded Funds (OTFs) and the USD1 stablecoin, combining yields from real-world assets, algorithmic trading, and DeFi protocols.
