Lorenzo isn’t another LSD protocol — it rewrites the logic of on-chain capital efficiency.
Instead of issuing notes like traditional LSDs, Lorenzo splits ETH staking into principal + yield rights, turning staked ETH into composable, tradable, structured assets. This solves Ethereum’s biggest problem: the huge amount of staked capital that remains illiquid and inefficient.
Its model is far more aggressive than previous protocols. By creating structured yield products and a minimalist liquidity layer, Lorenzo becomes the yield-decomposition layer beneath systems like Lido, unlocking flexibility and risk pricing similar to traditional finance. This is why institutional attention is rising.
Lorenzo grows not from marketing but from natural demand—treasuries, funds, and strategy teams need to split and hedge yield rights, which traditional LSDs can’t do. This makes Lorenzo a foundational layer, not an application. It can become the settlement layer for ETH yields—similar in scale to what Lido or Maker achieved in their cycles.
In short:
Real demand + irreplaceable structure + foundational positioning
= a protocol likely to become a major node in the next DeFi cycle.
#lorenzoprotocol @Lorenzo Protocol $BANK
