FAQ

Currently, Lorenzo's liquid restaking protocol primarily focuses on staking bitcoin and minting stBTC tokens. However, Lorenzo may explore support for staking other assets in the future, depending on market demand and technical feasibility.

Yes, users can stake small amounts of bitcoin with Lorenzo's protocol. Lorenzo aggregates small amounts of bitcoin staking into delegate vaults, allowing users to stake even if they don't meet the minimum threshold required by some PoS systems. This enables broader participation in staking activities and ensures that all users can benefit from staking rewards.

Staking Bitcoin carries inherent risks, including the potential loss of liquidity, the risk of slashing, and the possibility of capital loss. Lorenzo mitigates these risks through various mechanisms, such as staking insurance, node operator credit scores, and validator permits, ensuring the safety and security of staked assets.

Lorenzo implements various mechanisms to safeguard the security of staked Bitcoin, including staking insurance, liquid restaking plan management, node operator credit scores, and validator permits. These measures aim to mitigate the risk of slashing and ensure the safety of staked assets.

The Lorenzo Appchain serves as an EVM-compatible Bitcoin Layer 2 network secured by Babylon's Bitcoin shared security. It contains supporting contracts for all Lorenzo businesses and facilitates liquidity restaking. The appchain enhances security and immutability by anchoring blocks to the Bitcoin mainnet.

Babylon plays a crucial role in Lorenzo's Liquid Restaking Protocol by providing Bitcoin restaking infrastructure. It acts as a bridge between stakers and Proof-of-Stake (PoS) systems, ensuring the security of staked Bitcoin and rewarding stakers for providing security to PoS networks.

Liquid Restaking allows users to stake their cryptocurrency while retaining liquidity, unlike traditional staking mechanisms where tokens are often locked up for a certain period. With Liquid Restaking, users receive derivative tokens representing their staked assets, enabling them to participate in DeFi activities or use their assets for other financial purposes while still earning staking rewards.

Lorenzo Protocol is developing a flexible, modular Bitcoin L2 architecture that allows developers and users to select and integrate various components based on their specific requirements when building their custom Bitcoin L2. This approach ensures a uniform level of trust across components and promotes the idea of customizable Layer 2 solutions.

Lorenzo Liquid Restaking is the world’s first-ever Bitcoin liquid staking protocol. It enables stakers to maintain liquidity after staking, earn yield even when staking small amounts of Bitcoin, and be protecting from slashing penalties.

To be the premier Bitcoin platform for yield-bearing token issuance, trading, and settlement.