Bitcoin liquid restaking protocol Lorenzo Protocol announced that it has forged a strategic partnership with Bitlayer, a Bitcoin Layer 2 scaling solution, to enhance growth and engagement within their respective ecosystems.
As part of the partnership, Lorenzo Protocol will integrate stBTC with Bitlayer, facilitating its use across various applications and yield-generating opportunities within Bitlayer’s DeFi ecosystem by implementing staker incentives. The outcome of this partnership will be a simultaneous increase in total value locked (TVL) for both Bitlayer and Lorenzo Protocol. This will create more yield opportunities for their respective community members and foster higher engagement across both ecosystems.
Additionally, under the new partnership, Lorenzo Protocol will utilize Bitlayer’s suite of ecosystem products, including Layer 1 Verification, which inherits Bitcoin security through BitVM, Trustless 2-Way Peg which combines DLC & BitVM to introduce innovative models surpassing traditional multisig, and Turing-Completeness that supporting multiple VMs and facilitating a fully EVM-compatible environment.
We’re thrilled to announce our partnership with Lorenzo @LorenzoProtocol, the first-ever $BTC liquid restaking platform! Lorenzo offers streamlined Bitcoin management with features like staking insurance, node operator credit scores, anti-slashing mechanisms, and validator… https://t.co/XxntZ84tP7
— Bitlayer (@BitlayerLabs) May 21, 2024
What Is Lorenzo Protocol?
Lorenzo Protocol is focused on creating a liquid restaking protocol on Bitcoin, with the goal of becoming the first platform for issuing, trading, and settling yield-bearing tokens via the Bitcoin staking protocol Babylon. Its platform links Bitcoin stakers with high-quality projects requiring liquidity and security.
Moreover, the Lorenzo Protocol offers efficient Bitcoin management and user protections like staking insurance, node operator credit scores, anti-slashing measures, and validator permits. These features promote integration and interoperability throughout the ecosystem, enabling the flow of liquidity and yield generation across various blockchains.
Recently, Lorenzo Protocol has integrated with Babylon to empower users staking Bitcoin to earn income from both the Proof-of-Stake (PoS) ecosystem and the Bitcoin Layer 2 network, simultaneously enabling the acquisition of liquid staking tokens for users.
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