What is Lorenzo Protocol?

Lorenzo is the Bitcoin Liquidity Finance Layer.

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 restaking tokens. To incentivize users to stake Bitcoin liquidity, Lorenzo tokenizes staked Bitcoin into Liquid Principal Tokens (LPTs) and Yield Accruing Tokens (YATs) for each restaking transaction. Lorenzo also provides the infrastructure for exchanging LPTs and YATs, as well as honoring yield from restaking.

Lorenzo consists of a Cosmos appchain built with the Cosmos Ethermint, a relayer system that synchronizes BTC L1 and the Lorenzo appchain, and a system responsible for issuing and settling BTC liquid restaking tokens.