Passive income has been a key attraction in the changing world of decentralized finance (DeFi). Since yield farming and staking, people have been trying to find methods to make profit on their idle crypto assets even without trading. Nevertheless, most of the available strategies have an impermanent loss, high volatility, or locked liquidity. Introducing Lorenzo ProtocolA Binance-backed project that is changing the way on-chain assets give sustainable yields. Lorenzo-powered assets will become the new standard of reliable and liquid passive income in crypto with its institutional-grade product and tokenized approach.
Lorenzo Protocol, and its native token $BANK, are an institutional-grade on-chain asset management platform, which is mostly constructed on the BNB Chain. Inaugurated in 2025 and with a solid connection to the Binance ecosystem, including an exclusive Token Generation Event on Binance Wallet and eventual spot listing on Binance in November 2025, Lorenzo is the entry both to Bitcoin liquidity and wider DeFi opportunities. It began as a Bitcoin liquidity finance layer, with Babylon, to allow BTC staking, and has gone to include tokenized yield strategies.
In the simplest terms, Lorenzo could solve idle Bitcoin capital by liquid staking. BTC is staked by users through Babylon integration, where they receive stBTC, which is a liquid rewards staking token (LST). stBTC earns staking rewards on native Babylon and Lorenzo points, but is fully liquid to be used in DeFi: lending, providing liquidity, or trading on more than 20 chains. This does away with lock-up time as in the traditional staking where the holders lose their exposure and are unable to invest the capital elsewhere without an opportunity cost. Lorenzo also releases enzoBTC, a wrapped BTC standard, that can be redeemed 1:1 with Bitcoin, as cash in the ecosystem to obtain advanced products.
In addition to BTC, Lorenzo has another flagship product, the Financial Abstraction Layer (FAL), that allows On-Chain Traded Funds (OTFs), which are tokenized vehicles that package diversified yield strategies. The best example is USD1+, which is the official asset management product offered by Lorenzo to World Liberty Financial (WLFI). USD1+ combines three sources of returns:
Real-World Assets (RWAs): Stable base yield treasuries, private credit and others are tokenized.
CeFi Strategies: Delta-neutral trading and off-chain quantitative models.
DeFi Protocols: Lending, liquidity mining and further compounding farming.
Yield is received through token price appreciation so that there is no inflationary emission of money or a rebasing process that lowers value. The owners will store stablecoins such as USD1 and get sUSD1+ tokens as passive income with institutional rigor, transparent, audited, and composable.
Why would Lorenzo-powered assets become the standard?
In the first place, liquidity and composability. StBTC, enzoBTC and OTF tokens such as sUSD1+ are freely tradable such that unlike locked staking or opaque funds, they can be inter-chain and inter-protocol. This pro-sustainability response to farming emphasizes non-risky farming instead of the high risk one.
Second, design on institutional level. Lorenzo replicates classic asset management: diversified portfolios, risk management, and a controlled aspect (e.g. WLFI support). It is aimed at not only retail but institutions interested in on-chain treasury tools, and alliances lead to improved adoption.
Third, real yield focus. The returns are based on the real economic activity- RWA interest, trading profits, DeFi fees, and not token incentives. By the end of 2025, Lorenzo has impressive TVL, which has been strengthened by exposure on Binance and airdrops.
Fourth, ecosystem momentum. Lorenzo is establishing infrastructure to enable yields to seamlessly integrate with PayFi, RWAFi and neobanks with $BANK governing upgrades, and rewarding participation and with cross-chain expansions.
Issues need to be overcome: risks in smart contracts, regulatory, and legal review of RWAs, and competition via more established LSTs such as cbBTC. However, the hybrid model, i.e., decentralized implementation and trusted strategies, of Lorenzo puts it in a different realm.
Liquid, diversified, and sustainable passive income: the Lorenzo-powered assets represent an interesting blueprint as Bitcoin DeFi evolves, and trillions of BTC are in need of productive utilization. Should adoption persist, as Binance has the potential to facilitate, and the real-world integrations are made, they may very well serve as the on-chain standard, demystically rewarding all holders with professional yields.
