enzoBTC: Decentralized wrapped BTC for DeFi
enzoBTC, a wrapped BTC issued by Lorenzo Protocol, is poised to revolutionize the management and liquidity of Bitcoin (BTC) assets. Recognizing the growing demand for secure and streamlined BTC-based applications, enzoBTC aims to create a transparent and trustworthy environment for BTC asset aggregation.
What is enzoBTC
enzoBTC, a wrapped BTC issued by Lorenzo Protocol, is poised to revolutionize the management and liquidity of Bitcoin (BTC) assets. Recognizing the growing demand for secure and streamlined BTC-based applications, enzoBTC aims to create a transparent and trustworthy environment for BTC asset aggregation.
Mechanism of Minting enzoBTC
The minting of enzoBTC from native BTC/WBTC/BTCB is entirely decentralized. Lorenzo ensures the security of received native BTC/WBTC/BTCB by introducing well-known custodial institutions like Cobo, Ceffu and Chainup. Users can then leverage protocols like Wormhole and LayerZero to enable omnichain interoperability for enzoBTC.
Unstaking enzoBTC
Users can unstake their enzoBTC at any time to a chosen recipient address into different types of assets like native BTC,WBTC/BTCB.
The Core Approach
At the heart of the enzoBTC is a unique approach that involves locking underlying BTC assets while issuing wrapped BTC tokens. This approach not only unlocks the liquidity of native BTC but also seeks to explore various applications for both the underlying and upper-layer liquidity assets, ultimately generating returns for users.
Scalable BTC Applications
enzoBTC solves the BTC application scalability problem by building a decentralized committee hosting network. The architecture supports BTC-MPC (multi-party computation) with small signature shards and dynamic multi-signatures, thereby reducing centralization risks and improving operational efficiency.
Furthermore, enzoBTC aims to create an on-chain BTC DeFi strategy library, balancing flexibility and security. By unlocking liquidity and enabling multiple asset applications, enzoBTC strives to maximize the value of BTC-based assets.
Innovative Asset Application Model
enzoBTC Innovative Asset Application Model encompasses two key components:
1.Underlying Assets Yield Aggregation: Users can stake their native BTC into the Lorenzo Staking Plans on the Bitcoin chain, receiving an equivalent amount of Liquid Principal Tokens in return. The yield from the underlying BTC is generated through methods like Babylon POS staking, and CeFi (Centralized Finance).
2.Upper Layer Liquidity Assets Yield Aggregation: enzoBTC enables users to leverage their liquidity assets within traditional DeFi ecosystems , to participate in DeFi protocols and earn returns from the application providers.
Key Features
enzoBTC's key features include:
Security: Ensuring the safety and integrity of BTC-based assets
Convenience: Streamlining the management and utilization of BTC assets
Multiple Yield Strategies: Providing users with a diverse range of options to generate returns on their BTC holdings
With its innovative approach, enzoBTC aims to unlock the full potential of Bitcoin assets, fostering the development of a thriving BTC-based ecosystem and empowering users to maximize the value of
enzoBTC's Mission & Vision
enzoBTC's overarching goal is to elevate Bitcoin's role beyond just a store of value and transform it into a versatile financial instrument that powers the burgeoning digital economy. The vision is to unlock Bitcoin's potential as a foundational layer within the decentralized finance (DeFi) ecosystem, enabling it to serve as:
A universal collateral asset: Bitcoin's characteristics make it an ideal form of collateral for DeFi applications, allowing users to earn, stake, trade, and transfer BTC at scale within this rapidly evolving space.
A security backbone: Proof-of-Stake (PoS) networks can leverage Bitcoin's robust security model, providing a higher level of crypto-economic security than relying solely on native tokens.
A unifying fabric: Bitcoin can act as a connective tissue, bridging various protocols, ecosystems, capital flows, and innovative possibilities, thereby driving growth and fostering collaboration across the broader cryptocurrency landscape.
The overarching mission is to amplify Bitcoin's utility beyond its current status, positioning it as a versatile financial primitive that underpins the growth and development of DeFi and broader blockchain-based ecosystems.
enzoBTC in DeFi
Lorenzo's mission is to forge strategic partnerships with leading DeFi platforms, opening up new avenues for generating yields. enzoBTC's new approach ensures that enzoBTC is actively deployed across the most active and reputable DeFi protocols.
By strategically distributing enzoBTC across these DeFi platforms and incentivizing participation with Lorenzo points multipliers, Lorenzo aims to unlock a diverse range of yield-generating avenues for enzoBTC holders. This approach not only maximizes returns but also fosters the growth and adoption of enzoBTC within the broader DeFi landscape.
Borrow/Lend
DEX Liquidity
Restaking
Yield Farming
Trading
Vaults
enzoBTC vs stBTC
stBTC represents the yield earned by users who stake their BTC into the Babylon protocol through Lorenzo.
enzoBTC is a newly wrapped Bitcoin token issued by Lorenzo. With the launch of enzoBTC, users can deposit their enzoBTC as collateral into Lorenzo's Babylon Yield Vault to earn staking rewards from the Babylon protocol.
In other words, stBTC is the yield generated when users directly stake their BTC with Lorenzo for Babylon, while enzoBTC allows users to indirectly participate in Babylon staking by using the wrapped Bitcoin token as collateral in the Yield Vault.
This approach provides users with flexibility in how they contribute capital to the Babylon protocol and earn rewards, either through direct BTC staking or by utilizing the enzoBTC token as an intermediary collateral asset.
Technical Details
Smart contracts
BNB Chain: https://bscscan.com/address/0x6A9A65B84843F5fD4aC9a0471C4fc11AFfFBce4a
ETH Mainnet: https://etherscan.io/address/0x6A9A65B84843F5fD4aC9a0471C4fc11AFfFBce4a
Audit
https://github.com/Lorenzo-Protocol/audit-report
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