Lorenzo Overview

Lorenzo is the Bitcoin Liquidity Finance Layer. With the global adoption of Bitcoin growing, there is a significantly higher demand for Bitcoin liquidity, by ways of L2s, DeFi, trading, etc., and platforms are promising yield in exchange for Bitcoin liquidity. Babylon’s idea of Bitcoin Shared Security — staking Bitcoin liquidity to Proof of Stake (PoS) chains for rewards is a prime example of providing Bitcoin liquidity in exchange for yield. Lorenzo creates an efficient market in which Bitcoin holders can easily find the best opportunities to invest their unused Bitcoin liquidity and serves as the premier DeFi ecosystem in which to finance Bitcoin staking tokens. To incentivize users to stake Bitcoin liquidity, Lorenzo tokenizes staked Bitcoin into Liquid Principal Tokens (LPTs) and Yield Accruing Tokens (YATs) for each staking transaction. Lorenzo also provides the infrastructure for exchanging LPTs and YATs, as well as honoring yield from staking.