Lorenzo Protocol is a decentralized financial (DeFi) platform aimed at enhancing liquidity and yield of Bitcoin by allowing users to tokenize their Bitcoin into products like stBTC and enzoBTC. This platform utilizes the Financial Abstraction Layer (FAL) to create On-Chain Traded Funds (OTFs), which combine yield strategies with real-world assets (RWA) and DeFi protocols. The native token of this protocol is BANK, which holders can use for staking to gain voting rights and rewards.
How the Lorenzo Protocol works
Bridge between Bitcoin and DeFi: The Lorenzo Protocol acts as a bridge that allows Bitcoin to be used in the DeFi ecosystem for various activities such as yield farming and lending, without needing to sell the original Bitcoin.
Asset tokenization: This protocol allows Bitcoin holders to tokenize their assets into stBTC (a staking version of Bitcoin that generates yield) and enzoBTC (a wrapped version of Bitcoin used in the Lorenzo ecosystem).
Structured financial products: Through FAL, the Lorenzo Protocol creates OTF, such as USD1+ products, which integrate yields from real-world assets, trading strategies, and DeFi protocols to create diversified and structured yield strategies.
Based on BNB Chain: This protocol is built on the BNB Smart Chain to support scalability and compatibility.
BANK0.0467+1.30%
