Lorenzo Protocol is one of those rare crypto projects that tries to take complicated, institutional-level finance and pour it directly onto the blockchain without losing the sophistication behind it. Instead of another simple yield farm or staking pool, Lorenzo acts more like a digital version of professional asset management except it’s available to everyday users and institutions alike.
At the center of this ecosystem is something they call the Financial Abstraction Layer, a system that takes complex strategies like quantitative trading, volatility harvesting, covered calls, or even returns from U.S. Treasuries and turns them into clean, understandable on-chain fund products. These products, called On-Chain Traded Funds, behave like tokenized portfolios. They raise capital on-chain, run strategies off-chain with real professionals, then bring everything back on-chain for settlement and distribution. It’s the closest thing crypto has to a digital asset management firm built entirely for blockchain rails.
One of the flagship products pushing Lorenzo forward is the USD1+ OTF, launched on the BNB Chain in July 2025. It blends yield from real-world assets like tokenized Treasuries, delta-neutral trading strategies, and DeFi lending into one package. Users deposit stablecoins like USDT or USDC and receive sUSD1+, a token whose value grows over time rather than rebasing. The process mirrors traditional funds: you invest, and the NAV rises as strategies generate returns. Their first week APR of nearly 40% grabbed attention across the ecosystem, but the real appeal is how the product tries to balance different yield sources to create something smoother and more resilient.
Then comes the Bitcoin side of the story stBTC and enzoBTC. stBTC is Lorenzo’s equivalent of liquid staking, but for Bitcoin. Instead of letting BTC sit idle, users can stake it and receive stBTC, a liquid token they can use across DeFi while still earning yield. The integrations have grown fast: more than 30 protocols across over 20 chains now support stBTC. enzoBTC plays the role of a wrapped, 1:1 collateral-backed BTC token that serves as base capital in Lorenzo’s vaults. It’s meant for users who want to deploy their BTC more actively, opening doors to strategies that usually aren’t available to simple Bitcoin holders.
Behind all this sits BANK, the protocol’s native token and the brain of the ecosystem. BANK gives holders governance rights, letting them vote on strategies, parameters, and new products through veBANK. It also serves as a coordination tool for rewards, incentives, and alignment across all the vaults and funds. The token’s supply sits at around 2.1 billion, with roughly half a billion currently in circulation depending on the source. The price has seen plenty of volatility from an all-time high around $0.23 to drops near $0.018, and recent turbulence after major listings on exchanges like Binance, Poloniex, and KuCoin. The rapid pump and dump around the Binance listing became a talking point in November 2025, especially with the addition of BANK perpetual futures with up to 50x leverage.
Despite the volatility, Lorenzo has kept building. USD1+ went live, partnerships accelerated, and integrations with enterprise-oriented platforms like BlockStreetXYZ and TaggerAI positioned the protocol as a bridge between corporate treasury operations and on-chain yield. Now companies experimenting with stablecoin payments can route liquidity through Lorenzo products and earn while funds are settling a uniquely crypto-native advantage. In parallel, their integration with OpenEden’s USDO brought regulated, Treasury-backed yield directly into their vaults, expanding the real-world asset side of the strategy.
Lorenzo’s TVL has crossed major milestones, once surpassing $100 million, and the ecosystem keeps expanding as more chains and protocols adopt its products. But it’s not without challenges. Redemption cycles for USD1+ follow a professional fund structure, meaning withdrawals can take 7 to 14 days. RWA exposure brings counterparty, legal, and regulatory risks. Off-chain execution requires strong trust, security, and transparency from the managers. And competition in the on-chain asset management sector is fierce, with dozens of protocols chasing tokenized funds, structured products, or RWA yield.
Still, the vision is ambitious. Lorenzo imagines a future where anyone from a BTC maxi to a multinational enterprise can access curated strategies normally reserved for hedge funds. They want multi-strategy OTFs spanning volatility, macro trends, yield optimization, and RWAs. Cross-chain expansion could put Lorenzo vaults on more networks, and veBANK governance could mature into a truly community-driven fund platform.
Looking ahead, the next few months will be telling. Will USD1+ grow into a major stablecoin fund? Will stBTC become a cornerstone of Bitcoin yield strategies across DeFi? Will corporate partnerships bring non-crypto capital into the ecosystem? These questions will shape Lorenzo’s next chapter, but the direction is clear: they’re trying to build a world where traditional finance and decentralized architecture don’t collide they merge.
#lorenzoprotocol @Lorenzo Protocol $BANK
