A traditional treasury office last year and asked for a product that pays dollar yields, tracks Bitcoin staking, and settles on a public ledger every six minutes, the staff would have smiled politely and returned to their Bloomberg terminals. This December, that same bundle of features is only three clicks away inside LorenzoProtocol—and the code is already live.
Lorenzo is not another “DeFi yield app” with a glossy front end. It is a back-office refactor: a set of smart contracts that turn institutional strategies into transferable tokens while keeping the risk plumbing visible to anyone who cares to look. The protocol’s five core products—USD1+, stBTC, enzoBTC, sUSD1+, and BNB+—look calm on the surface, yet each one is a miniature fund that rebalances itself without portfolio managers, custodians, or offshore SPVs.
Start with the simplest question: where does the yield come from? USD1+ is a rebasing token whose balance grows daily. The growth is not conjured by inflationary emissions; it is harvested from three places at once: short-duration U.S. T-bill tokens, delta-neutral quantitative desks, and curated lending pools. The allocation is not decided by a committee call but by the Financial Abstraction Layer, a contract suite that reads on-chain oracles and rebalances when any leg deviates more than two percent from target weight. The result is a 4.8–5.4 % APY that behaves like a money-market NAV, except you can send it to any BSC address or use it as collateral on lending markets.
Bitcoin holders face a different puzzle: how to earn native BTC yield without giving up liquidity or trusting a wrapped custodian.
Lorenzo’s answer is stBTC, a liquid staking receipt for BTC staked through Babylon’s trustless module. When you deposit BTC, Lorenzo mints two separate tokens: stBTC represents the principal and stays fungible; the second token, YAT (Yield Accruing Token), tracks the staking reward alone. You can sell the YAT today to lock in yield, keep the stBTC to stay long Bitcoin, or supply both to a liquidity pool and collect swap fees on top. Redemption is always 1:1 against the underlying BTC, and the custody stack is split between Cobo, Ceffu, and Chainup so that no single entity can halt withdrawals. The last audit report (May 2025) found zero critical issues; a CertiK Skynet monitor now watches the contracts in real time and publishes a public risk score that currently reads 91.36/100.
For users who want more aggressive BTC exposure, enzoBTC applies a modest leverage layer inside a single token. The contract routes a portion of the collateral to basis-trade desks and BTC perpetual funding-rate strategies, then sweeps profits back into the token price. You never handle margin, sign exchange APIs, or worry about liquidation emails; the vault auto-deleverages if open-interest costs spike. Since January’s contract upgrade, enzoBTC has returned 8.9 % net APY with a maximum drawdown under three percent—numbers that would be respectable for a hedge-fund share class, yet here the subscription minimum is 0.001 BTC and the exit window is twenty-four hours.
Institutions care less about APY headlines and more about settlement details. Lorenzo’s OTF (On-Chain Traded Fund) framework records every subscription, redemption, and fee accrual on BSC. NAV is calculated block-by-block, so an auditor can replay the entire month with a single RPC call. The team—Matt Ye (CEO), Fan Sang (CTO), Toby Yu (CFO), and COO Tad Tobar—publish wallet addresses for each fund, plus a Merkle tree of off-chain strategy exposures updated daily. In November, Hash Global’s BNB Fund tokenized its shares as BNB+ using the same architecture; holders now receive validator-staking rewards plus ecosystem incentives without running their own nodes or locking assets for twenty-one days.
Governance is handled by BANK, a fixed-supply token that doubles as the economic bandwidth of the system. Users lock BANK to receive veBANK, which grants three powers: vote on strategy ceilings, split protocol fees, and queue emergency pauses. Revenue is not an afterthought: twenty percent of all management fees flow to a staking pool that buys back BANK on the open market and redistributes it weekly. Because the supply is capped at 2.1 billion and no seed investor unlock occurs before March 2026, the float is tight even as TVL crosses nine figures.
Security design follows the same minimalist philosophy. The protocol keeps three layers: asset custody, strategy execution, and price oracles. Each layer is isolated so that a compromise in one cannot drain the others. Multi-sig wallets require four of seven signatures, and the signers are spread across Singapore, Toronto, and Tallinn. A bug-bounty program pays up to half a million dollars through Immunefi; so far, the largest payout has been 45 k for a griefing vector that was patched before main-net deployment.
Integration work is accelerating. In the last quarter, Lorenzo connected its OTFs to four wallets—BG, oK-x, TnPocket, and Binance Web3—so that users can subscribe with one tap while the wallet backend routes assets through the cheapest on-ramp available. Developers who want native yield inside their own dApps can call the OTF factory contract, mint a custom share token, and embed it as collateral without asking permission. A structured-credit desk in Hong Kong is already using the SDK to build a tokenized trade-finance vault that settles invoices on-chain and pays lenders in USD1+.
What comes next? Phase Two, now in audit, will accept wBTC, BTCB, and tBTC as collateral for stBTC, opening the door to 300 k additional Bitcoin. A privacy-preserving KYC module is being tested so that sovereign wealth funds can enter without broadcasting their addresses to the world. And the team is quietly negotiating with two neobanks to offer a white-label savings account whose backend is simply a USD1+ wallet wearing a familiar UI.
The quiet truth is that Lorenzo has built the kind of infrastructure traditional finance promised for decades: diversified exposure, daily liquidity, and transparent NAV—all running on open-source code that never sleeps. The only marketing trick is that there is no trick; the yields are real, the risks are spelled out, and the tokens sit in your wallet ready to move. If you want to watch the experiment in real time, LorenzoProtocol and track the on-chain metrics yourself. The address is public, the dashboard loads without login, and the blocks keep ticking forward—one more rebalance, one more yield accrual, one more small step toward a market where “bank” is no longer a building downtown but a hashtag you can inspect on LorenzoProtocol.
#LorenzoProtocol @Lorenzo Protocol $BANK
