Enables Bitcoin stakers to earn yield by staking BTC in liquidity plans created by projects requiring funds, while minting Liquid Principal Tokens (LPT) and Yield-Accruing Tokens (YAT) for trading and reward claims. This platform expands yield opportunities beyond native Layer 1 staking by integrating with multiple Proof of Stake (PoS) chains, providing liquidity and security for both stakers and projects.
Funding
Funding not disclosed
Founders
Product
Problem
Bitcoin holders are often limited to native Layer 1 staking for yield opportunities, restricting potential rewards and liquidity options. Projects requiring Bitcoin liquidity face challenges in acquiring funds efficiently and securely within the DeFi ecosystem.
Solution
Lorenzo Protocol provides a platform that connects Bitcoin stakers with projects needing liquidity, enabling users to earn yield by staking BTC in liquidity plans. Stakers receive Liquid Principal Tokens (LPT) and Yield-Accruing Tokens (YAT), which can be traded and used within the Lorenzo DeFi ecosystem. This system expands yield opportunities beyond native Layer 1 staking by integrating with multiple Proof of Stake (PoS) chains, providing liquidity and security for both stakers and projects. Lorenzo issues stBTC, a liquid restaking token (LRT), for staked LPT, and YAT holders can claim rewards at maturity.
Target Audience
The primary audience includes Bitcoin holders seeking diversified yield opportunities and DeFi projects in need of BTC liquidity.
Features
- Liquid staking of BTC to various Proof of Stake (PoS) chains
- Minting of Liquid Principal Tokens (LPT) and Yield-Accruing Tokens (YAT) upon staking
- Trading and utilization of LPT and YAT within the Lorenzo DeFi ecosystem
- Issuance of stBTC, a liquid restaking token (LRT), for staked LPT
- Settlement system for stakers to retrieve earned rewards and staked BTC at YAT maturity
- Integration with Wormhole for multichain liquidity of stBTC and enzoBTC across Ethereum, Sui, and BNB Chain
- Partnerships with various DeFi protocols to expand stBTC staking opportunities