Lorenzo Protocol
Lorenzo Protocol is an institutional-grade asset management platform specializing in Bitcoin Finance (BTCFi), providing a mechanism for Bitcoin holders to earn yields without giving up custody of their assets. The platform, launched in 2022, offers various financial products using liquid staking derivatives and On-Chain Traded Funds (OTFs) to tokenize complex yield strategies. It was founded by a team of industry professionals including Matt Ye, Fan Sang, and Toby Yu. Lorenzo Protocol issues a native governance token called BANK, which facilitates participation in the protocol's ecosystem and decision-making processes. [1] [2]
History
Lorenzo Protocol was founded in 2022 by Matt Ye, Fan Sang, and Toby Yu. Matt Ye, serving as the CEO, has a background in quantitative trading, having worked at firms like Akuna Capital. [1] [3] [4] Despite conflicting reports about the company's headquarters, it is stated to operate between Atlanta, USA, and Indonesia. Tracxn reports 175 employees as of January 2026, whereas PitchBook cites a smaller team of 29 members. [5] [4]
Technology & Architecture
The core of Lorenzo Protocol's offering is the Financial Abstraction Layer (FAL), which enables the creation and management of On-Chain Traded Funds (OTFs). These OTFs are financial products that package together complex yield strategies into a single, tradable token, accessible to both retail and institutional investors. [2]
Lorenzo Protocol specializes in services focused on Bitcoin Finance (BTCFi). It provides a liquid staking derivative, stBTC, which represents Bitcoin staked through the Babylon protocol. This derivative is redeemable 1:1 with native BTC and accrues additional rewards distributed via Yield Accruing Tokens (YATs). Additionally, enzoBTC is another product offered by Lorenzo, functioning as a wrapped Bitcoin token that is fully collateralized and compatible with over 21 blockchain networks. [6] [7]
Products & Use Cases
The platform offers a range of products aimed at optimizing yield for Bitcoin holders. Key products include:
- stBTC: A liquid staking derivative that allows BTC holders to earn yield without relinquishing control of their holdings. [2]
- enzoBTC: Provides integration for Bitcoin across decentralized finance (DeFi) applications by wrapping BTC, supported across various blockchain networks. [7]
- USD1+ OTF: A tokenized product akin to a money market that aggregates returns from multiple sources including real-world assets and DeFi. [6]
Partnerships & Adoption
Lorenzo Protocol serves as the official asset management partner of World Liberty Financial (WLFI), using WLFI's USD1 stablecoin to power its USD1+ product. In July 2025, WLFI acquired approximately 1 million incentive program launched jointly with BNB Chain, PancakeSwap, and BUILDon; Lorenzo was recognized as the winning project in the program's 'Existing BSC Projects' category.
Funding & Investors
Lorenzo Protocol's funding has come from notable investors including Beacon (AI), 300 DAO, ABCDE Capital, ArkStream Capital, D1 Ventures, SATS Ventures, DHVC, and Symbolic Capital. A funding event was the Initial DEX Offering (IDO) conducted on April 18, 2025, on Binance Wallet, through which Lorenzo Protocol raised over $200,000. [6] [1]
Team & Governance
The core team of Lorenzo Protocol includes Matt Ye as Co-founder and CEO, Fan Sang as Co-founder and CTO, Toby Yu as Co-founder and CFO, Tad Tobar as COO, and Lith Li as Head of Marketing, with the product led by Rug. [3] While the protocol employs a governance mechanism through its BANK token, few specific details about the governance processes are outlined in the available sources.
