@Lorenzo Protocol #lorenzoprotocol $BANK Bitcoin has long been celebrated as a store of value, but its role has historically stopped there. While it secures wealth, it rarely contributes to growth. Lorenzo Protocol challenges this limitation by introducing a structured, engineered framework that transforms idle Bitcoin into productive on-chain capital—without abandoning Bitcoin’s core principles of security and scarcity.
At the foundation of Lorenzo’s system is liquid staking, a mechanism designed to unlock Bitcoin’s utility while maintaining flexibility. Users deposit BTC and receive enzoBTC, a one-to-one representation that remains fully backed. This tokenized form allows Bitcoin to circulate freely across decentralized ecosystems rather than sitting dormant in wallets. With nearly half a billion dollars in value secured, enzoBTC functions as a liquidity layer that keeps Bitcoin usable without sacrificing ownership.
The yield layer deepens when enzoBTC is staked to mint stBTC. This asset connects Bitcoin holders to emerging staking infrastructures such as Babylon, allowing them to earn yield while retaining liquidity. Unlike traditional staking models that lock assets away, Lorenzo’s approach ensures users can rebalance or exit positions as market conditions change. This flexibility is essential in volatile environments, where static capital often becomes a liability.
Beyond individual yield generation, Lorenzo introduces On-Chain Traded Funds (OTFs), which package sophisticated financial strategies into transparent, tokenized products. These instruments replicate traditional portfolio techniques—such as principal protection, futures rebalancing, and volatility management—entirely on-chain. Each OTF follows predefined logic, giving users clarity over risk exposure and expected behavior.
Governance ties the system together through the BANK token. By staking and locking BANK, participants receive veBANK, granting voting power over protocol upgrades, strategy launches, and incentive structures. This alignment between capital providers and decision-makers ensures that Lorenzo evolves in response to real user needs rather than speculative hype.
Lorenzo Protocol represents a shift from passive Bitcoin holding toward intentional financial engineering. It does not attempt to replace Bitcoin’s identity; instead, it extends it—allowing BTC to participate in modern financial systems while remaining fundamentally Bitcoin.
