Lorenzo Protocol

Lorenzo Protocol is a multi-chain Bitcoin liquidity infrastructure with over $1B that aims to make Bitcoin accessible across over 21 blockchain networks. It offers two main features designed to shift the Bitcoin economy on-chain:

• Bitcoin liquid restaking token

Lorenzo Protocol creates a new utility and purpose of holding Bitcoin for users by introducing Babylon’s restaking, making it not only an asset to hold for earning profits, but also to get a yield from restaking.

Similar to other protocols in the industry, such as Swell network, Lombard Finance, or Solv Protocol, Lorenzo allows users to restake their Bitcoins to receive back a liquid, yield-bearing version of this token - $stBTC. Initially, $stBTC is tethered with Bitcoin’s price in a 1:1 ratio, but as the protocol receives restaking rewards from the Babylon chain, it will start outperforming $BTC. 

This way, the Lorenzo crypto platform keeps users’ funds completely liquid, allowing them to either trade to any other token on-chain, use it as collateral, or deposit $stBTC into any liquidity pools available. 

• Cross-chain wrapped Bitcoin

If users aren’t interested in restaking Bitcoins but rather willing to use them on DeFi across multiple chains, the Lorenzo Protocol introduced its own wrapped version of Bitcoin - $enzoBTC. With enzoBTC, the platform aims to achieve a seamless on-chain DeFi experience, where a single tokenized Bitcoin is accessible across over 21 various blockchain networks while opening plenty of new yield farming opportunities on such chains.

🪙 Lorenzo token: On April 17, 2025, Lorenzo protocol announced the release and sale of its native $BANK token on PancakeSwap launchpad via Binance Wallet. According to the Binance post, it will be primarily used for governance, by granting users voting power via staking of $BANK.

Considering the rising attention towards the Lorenzo crypto project, the CoinLaunch team conducted a comprehensive research on Lorenzo and found some of its pros and cons:

✅ Lorenzo Protocol pros:

• Decent FDV (near $89M);
• Low Initial MC (near 20%);
• Over $1B in TVL reached;
• Presence of security audits from the top-tier companies;
• Good Growth marketing and SMM scores;
• Not bad PR performance;
• Binance Labs is a backer;
• The token had a listing and a Binance Wallet IDO;
• Solid network of partners.

❌ Lorenzo Protocol cons:

• No info about the tokenomics and token release schedule was found by our team;
• Most of the Binance listings see poor performance in the mid-long term;
• The narrative of liquid restaking isn’t as popular as it was before, while tokens of such projects are often dumped;
• Very weak Influencer marketing, and Marketing Infrastructure;
• Bad SEO;
• Except for Binance Labs, there are no other investors backing the platform;
• Core team members don’t have work experience in the top-tier companies.