# Lorenzo Protocol

> Lorenzo Protocol is an institutional-grade asset management platform specializing in Bitcoin Finance, leveraging liquid staking derivatives and On-Chain Traded Funds for yield without custody loss. Founded in 2022 with a governance token, BANK.

- Canonical URL: https://iq.wiki/wiki/lorenzo-protocol
- Categories: Projects & Protocols
- Tags: Bitcoin, DeFi, Infrastructure, RWA
- Created: 2026-07-23T13:58:24.049Z
- Last updated: 2026-07-30T18:08:17.851Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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**Lorenzo Protocol** is an institutional-grade asset management platform specializing in [Bitcoin](https://iq.wiki/wiki/bitcoin) Finance (BTCFi), providing a mechanism for [Bitcoin](https://iq.wiki/wiki/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](https://iq.wiki/wiki/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. [\[1\]](#cite-id-K8TcWPpenBbxRcQu) [\[2\]](#cite-id-WbdIlkRYxXALDKo0)​

## History

Lorenzo Protocol was founded in 2022 by [Matt Ye](https://iq.wiki/wiki/matt-ye), Fan Sang, and Toby Yu. [Matt Ye](https://iq.wiki/wiki/matt-ye), serving as the CEO, has a background in quantitative trading, having worked at firms like Akuna Capital. [\[1\]](#cite-id-K8TcWPpenBbxRcQu) [\[3\]](#cite-id-SVTZnfoiwIM8yy3F) [\[4\]](#cite-id-nxxGRJGEvMzc901D) 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. [\[5\]](#cite-id-1QZpv2EXD2cYDaVu) [\[4\]](#cite-id-nxxGRJGEvMzc901D)​

## 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. [\[2\]](#cite-id-WbdIlkRYxXALDKo0)​

Lorenzo Protocol specializes in services focused on [Bitcoin](https://iq.wiki/wiki/bitcoin) Finance (BTCFi). It provides a liquid staking derivative, stBTC, which represents [Bitcoin](https://iq.wiki/wiki/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](https://iq.wiki/wiki/bitcoin) token that is fully collateralized and compatible with over 21 blockchain networks. [\[6\]](#cite-id-5XcFVfrJgUGZbHhG) [\[7\]](#cite-id-aNCbbj4umC7lP4wJ)​

## Products & Use Cases

The platform offers a range of products aimed at optimizing yield for [Bitcoin](https://iq.wiki/wiki/bitcoin) holders. Key products include:

* **stBTC:** A liquid staking derivative that allows BTC holders to earn yield without relinquishing control of their holdings. [\[2\]](#cite-id-WbdIlkRYxXALDKo0)
* **enzoBTC:** Provides integration for [Bitcoin](https://iq.wiki/wiki/bitcoin) across decentralized finance (DeFi) applications by wrapping BTC, supported across various blockchain networks. [\[7\]](#cite-id-aNCbbj4umC7lP4wJ)
* **USD1+ OTF:** A tokenized product akin to a money market that aggregates returns from multiple sources including real-world assets and DeFi. [\[6\]](#cite-id-5XcFVfrJgUGZbHhG)

## Partnerships & Adoption

Lorenzo Protocol serves as the official asset management partner of [World](https://iq.wiki/wiki/world) Liberty Financial (WLFI), using WLFI's [USD1](https://iq.wiki/wiki/usd1) stablecoin to power its [USD1](https://iq.wiki/wiki/usd1)+ product. In July 2025, WLFI acquired approximately 1 million incentive program launched jointly with [BNB Chain](https://iq.wiki/wiki/binance-smart-chain), [PancakeSwap](https://iq.wiki/wiki/pancakeswap), and [BUILDon](https://iq.wiki/wiki/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](https://iq.wiki/wiki/binance) Wallet, through which Lorenzo Protocol raised over $200,000. [\[6\]](#cite-id-5XcFVfrJgUGZbHhG) [\[1\]](#cite-id-K8TcWPpenBbxRcQu)​

## Team & Governance

The core team of Lorenzo Protocol includes [Matt Ye](https://iq.wiki/wiki/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. [\[3\]](#cite-id-SVTZnfoiwIM8yy3F) While the protocol employs a governance mechanism through its BANK token, few specific details about the governance processes are outlined in the available sources.