Lorenzo Protocol (BANK): Unlocking institutional Bitcoin liquidity and yield
Bitcoin, the world’s most successful original cryptocurrency, holds the largest crypto market capitalization. However, much of its vast liquidity remains separate from the diverse yield opportunities in decentralized finance (DeFi). Lorenzo Protocol is designed to bridge this gap, aiming to transform BTC from a passive store of value into a productive, yield-generating asset for both institutional and retail users.
This article explores Lorenzo Protocol, its recent evolution into an institutional-grade asset management platform, how its core technology works, the utility of its native BANK token and how you can trade it on Bybit.
Key Takeaways:
Lorenzo Protocol is a Bitcoin liquidity layer that’s evolving into an institutional-grade, on-chain asset management platform, focused on real yield.
Its platform enables Bitcoin holders to earn yield through mechanisms such as liquid staking via stBTC and enzoBTC, without locking up their assets.
Lorenzo Protocol’s native BANK token is used for governance and staking within its ecosystem. Bybit has recently listed the BANKUSDT Perpetual contract.
What is Lorenzo Protocol?
Lorenzo Protocol is a decentralized asset management platform that’s building an institutional-grade financial layer for Bitcoin, aiming to unlock its vast liquidity for the DeFi ecosystem. Initially focused on helping BTC holders access yield through liquid staking tokens (LSTs), Lorenzo has recently upgraded its infrastructure with the introduction of its Financial Abstraction Layer. This strategic shift positions Lorenzo Protocol as an on-chain asset management platform that’s dedicated to tokenizing financial products and delivering sustainable, real yield.
The protocol's core mission is to advance a borderless global economy by enabling Bitcoin holders and other capital providers to earn yield without sacrificing their assets’ liquidity. It seeks to connect idle capital with diverse yield strategies, including staking and sophisticated trading opportunities, making these opportunities accessible through standardized, tokenized financial products.
Who are Lorenzo Protocol's founders and investors?
Lorenzo Protocol was co-founded by a team with strong backgrounds in finance and technology. Co-founders Matt Ye, Fan Sang and Toby Yu serve (respectively) as CEO, CTO and CFO. Their collective expertise guides the protocol's development and strategic vision.
The project has garnered support from a range of prominent investors. Key backers include YZi Labs, BNB Chain, Geekcartel, NGC Ventures, HTX Ventures, ArkStream Capital, Animoca Brands and Sats Ventures. As of May 12, 2025, Lorenzo Protocol has a DeFi total value locked (TVL) of $718.23 million, according to DefiLlama.
How does Lorenzo Protocol work?
Two core components power Lorenzo Protocol’s mission to bring institutional-grade financial products on-chain: the Financial Abstraction Layer (FAL) and the Bitcoin Liquidity Layer.
The Financial Abstraction Layer is Lorenzo's core infrastructure. It tokenizes centralized finance (CeFi) strategies and makes them usable within DeFi. The FAL packages complex operations, such as custody, lending and trading, into simple, tokenized products accessible via standardized vaults and modular APIs. This allows financial access platforms (like neobanks or PayFi apps) to integrate verifiable yield modules without building complex financial logic themselves.
An example of a product powered by FAL is the On-Chain Traded Fund (OTF), which tokenizes yield strategies (fixed yield, principal protection, etc.) into a single tradable ticker, similar to traditional exchange-traded funds (ETFs).
The Bitcoin Liquidity Layer specifically focuses on integrating BTC into DeFi. Recognizing that a vast amount of Bitcoin sits idle, this layer provides infrastructure for issuing various BTC-native derivative tokens. These include stBTC, a liquid staking token representing Bitcoin staked via Babylon, and enzoBTC, a Wrapped Bitcoin (WBTC) standard designed for seamless use across Lorenzo's ecosystem and DeFi. This layer aims to turn passive BTC into active capital for lending, yield farming and structured products.
BANK tokenomics and utility
BANK is the native governance and utility token of the Lorenzo Protocol. It plays a crucial role in the ecosystem's operation and long-term alignment. The key use cases of BANK include:
Governance: BANK holders can participate in protocol governance decisions, influencing product updates, fee structures and resource allocations.
Staking: Users can stake BANK tokens to receive veBANK (vote-escrowed BANK). Holding veBANK grants enhanced governance rights and eligibility for additional BANK emissions and a share of protocol fees. The longer BANK is locked (for veBANK), the greater your voting influence and potential rewards.
Value capture: Lorenzo Protocol plans to implement a token buyback program using protocol revenue in order to return value to BANK holders.
As of May 12, 2025, according to CoinGecko data, BANK’s key metrics are as follows:
Maximum supply: 2.1 billion BANK
Total supply: 425.25 million BANK
Circulating supply: 425.25 million BANK
Market cap: $30.63 million
Price: $0.0721
24-hour trading volume: $21.6 million
The initial circulating supply was 20.25% of the total, with 8% of the total supply reserved for an initial community airdrop. BANK’s token unlock schedule is designed for long-term alignment, with no token unlocks for the team, investors, advisors or treasury in the first year post-IDO.
Where to buy BANK
Bybit has recently expanded its offerings on its user-friendly and intuitive cryptocurrency exchange by listing the BANKUSDT Perpetual contract. This allows traders to gain exposure to BANK's price movements with leverage.
The BANKUSDT Perpetual contract is featured in Bybit's Innovation Zone, which provides access to new and innovative token pairs. Users can trade this contract with up to 50x leverage.
How to trade BANK on Bybit
You can trade the BANKUSDT Perpetual contract on Bybit once you have a verified account with deposited funds. Here's how to get started, in four simple steps:
Create and verify your Bybit account: If you're new to Bybit, sign up and complete the necessary identity verification.
Deposit funds: Fund your Bybit Unified Trading Account with USDT.
Navigate to the trading page: Go to the Derivatives section on Bybit and head to the trading page of the BANKUSDT pair.
Place your order: Choose your order type (e.g., Market, Limit), set your desired leverage, enter the order quantity and then confirm your trade. Consider using Take Profit and Stop Loss orders to manage risk.
Ready to trade BANK on Bybit? Create your account now to get started!
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