IBIT LaunchPool #2: Lorenzo Protocol (BANK) Introduction – IBIT

About Lorenzo Protocol (BANK)

Lorenzo is building Bitcoin’s liquidity layer, offering native BTC staking through Babylon for real, verifiable, and bridge-free yields. Backed by an innovative token system—enzoBTC, stBTC, and YAT—Lorenzo unlocks BTC liquidity across DeFi and creates new earning opportunities.

Unlike traditional wrapped BTC models, Lorenzo uses Babylon’s native staking, securing rewards directly on-chain. Its Staking Agent and SPT redemption system ensure a seamless path for BTC issuance, trading, and settlement.

Lorenzo isn’t just about earning yield — it’s building Bitcoin’s core DeFi infrastructure, empowering users to access lending, stablecoins, options, and more with stBTC and YAT.

Token Information

Networks: BEP20
BEP20 Address: 0x3AeE7602b612de36088F3ffEd8c8f10E86EbF2bF
Circulating Supply: 425 million
Max Supply: 2.1 billion
Total Supply: 2.1 billion

Allocation

Incentives & Rewards (25%): BTC staking rewards, stBTC/YAT liquidity incentives, PoS collaborations. 8% airdropped within 3 months post-IDO.
Investors (25%): Strategic investors, gradual unlock schedule.
Core Team (15%): Key contributors to Lorenzo, cliff + long-term vesting.
Ecosystem & Development (13%): Babylon integration, Bitlayer, multi-chain deployment, downstream partners.
Treasury (5%): Strategic reserve for future incentives and security.
Advisors (5%): Tech, marketing, legal contributors.
Liquidity Support (4%): Market making on CEX/DEX, early liquidity.
Marketing (3%): IDO promotions, public chain activities, community growth.
Exchange Launch Incentives (3%): User rewards, airdrops during CEX listings.
Binance Wallet IDO (2%): Reserved for Binance Wallet IDO-related campaigns and user rewards.

Token Utility

Governance and Decision-Making

BANK is the governance token of Lorenzo Protocol. Holders can participate in major protocol decisions, such as treasury strategies and new feature development, promoting a community-driven ecosystem.
Smart Savings and Yield

BANK powers smart savings vaults, allowing users to earn automated yields—ideal for investors seeking stable returns.
Dividend Distribution and Deflation Incentives

Holding 200 BANK entitles users to USDT dividend payouts. With each transaction, BANK tokens are burned, reducing supply and driving long-term value appreciation.

Market Potential

As the first native BTC liquidity protocol on Babylon, Lorenzo handles BTC asset issuance, trading, and settlement, with a structured stBTC + YAT model laying the foundation for an interest rate market.

Current circulating market cap of BANK is around $21 million, significantly lower than peers in the Bitcoin and restaking sectors. With Babylon mainnet launching and Binance Labs backing, BANK has strong revaluation potential.

Comparable projects like Stacks, Merlin Chain (BTC Layer2), and EigenLayer (ETH restaking) demonstrate the high market cap elasticity of similar models.

With its unique positioning and direct Babylon integration, BANK could catch up to BTC LRT or BTC L2 leaders once the market recovers.

Technical Advantages

Native BTC Staking — Highest Security Standard

Built on Babylon, Lorenzo enables direct BTC staking without wrapping, bridging, or custodianship, eliminating external risks and establishing the gold standard for BTC yield security.
First Principal-Yield Split Model for Bitcoin

Lorenzo introduces CeDeFi architecture with stBTC (principal) and YAT (yield), activating BTC’s financial utility and turning Bitcoin from a passive asset into a composable yield asset.
CeDeFi Staking Agent + SPT Redemption Queue

Through “Staking Agent + SPT Queue” mechanisms, Lorenzo ensures orderly issuance and settlement, avoids liquidity mismatch, and guarantees transparent, verifiable yield distribution.
Multi-Chain Expansion + Strong Capital Backing

stBTC is already bridged to Bitlayer for DeFi integration, with plans for broader adoption. Backed by Babylon and Binance Labs, Lorenzo aims to become the BTC version of Lido + Pendle, leading the next wave of Bitcoin financialization.

Official Links

Website: lorenzo-protocol.xyz
Whitepaper: Docs
Github: Github Repository
BscScan: BEP20 Contract
Twitter: @LorenzoProtocol
Telegram: Join Community
Discord: Join Discord

Cryptocurrency trading involves significant volatility and risks. All investment strategies are at your own discretion and risk. IBIT does not take responsibility for any investment decisions or outcomes.

IBIT Team

April 26, 2025

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