The Lorenzo Protocol Cap 1 pre-launch staking event for Babylon was a massive success, with our team successfully staking 128.6/250 BTC from our Cap 1 pre-launch staking event to Babylon, achieving the third-highest delegation total among finality providers and a 51% staking success rate!
Now, it’s time to capitalize on this momentum and level up.
We’re thrilled to announce the launch of our Cap 2 pre-launch staking event for Babylon, complete with additional rewards lined up for all participants — current users and newbies alike!
Begin Staking: https://app.lorenzo-protocol.xyz/staking
This article will cover the high-level details of our Cap 2 event and the plans for how we are going to follow up Cap 1. Let’s get started!
Introduction To Cap 2 Plan
First, let’s dive into all the key high-level details you need to know for this event.
BTC Deposits and Staking Cap
This time, Lorenzo will accept BTC and BTCB deposits to the Babylon mainnet, without any staking cap. The staking period will conclude upon the launch of Babylon mainnet Phase 2.
stBTC Allocation
Stakers will receive an equivalent amount of stBTC for the BTC/BTCB deposit.
Staking Limits and First-Come, First-Served Basis
Babylon may impose limits on the total amount of BTC that can be staked during Cap 2 of the mainnet launch, and will accept BTC for staking on a first-come, first-served basis. Lorenzo will make every effort to delegate the received BTC before the staking limit is reached.
Reward Distribution for Cap 2
Cap 2 is now live, with users able to stake native BTC and BTCB to the staking plan. Cap 2 will continue to offer our unparalleled dual incentive system, rewarding users with both Cap 2 YAT and Lorenzo Points.
The rewards generated from staking to Babylon will be distributed to all participating stakers in proportion to their BTC/BTCB contributions.
Lorenzo will reward all received BTC/BTCB with Lorenzo points. For details on Lorenzo Points, please check out Lorenzo Points & Yield: An Overview
Please note: The Cap 1 YAT structure mentioned in Lorenzo Points & Yield: An Overview doesn’t apply to Cap 2.
Users who successfully complete the staking will receive the following Cap 2 Rewards:
- YAT1, named yLRZ2: represents a share of $3 million worth of LRZ tokens (valuation based on anticipated TGE outcomes).
- YAT2, named yBBN2: represents an allocated share of Cap 2 Babylon rewards.
- Lorenzo Points: includes all points earned in Cap 2 (base points, referral, etc.)
Cap 1 Redemption and Follow-Up Plan: Key Updates and Incentive Adjustments
Due to the recent launch of Babylon staking and the complexity of its first phase rules, we’ve been making technical adjustments to comply with the new regulations.
This adjustment period has caused a delay in opening the redemption application period for the Cap 1 pre-launch staking event. We anticipate the withdrawal function for deposits to be available very soon before the end of Cap2, which will coincide with the start of Babylon’s Phase 2 staking.
In response to this situation, we’ve introduced a follow-up plan and incentive adjustment specifically for Cap 1 participants, summarized below:
The transition plan to Cap 2
All BTC that was not staked into Babylon during Cap 1 will be automatically transferred to the Cap 2 staking pool, enabling the Lorenzo community to build upon the success achieved before Babylon mainnet went live.
Incentive Adjustment Details
As a thank you to our supporters for their patience, we have enhanced the Babylon staking Cap 1 rewards.
Prior to this update, Cap 1 YAT rewards comprised native rewards from Babylon staking and Lorenzo token airdrops, with a total value of $1.5 million. We are now adjusting this structure to enhance users’ expected returns:
Before this update, users who participated in Cap 1 were set to receive:
1 YAT (representing an allocated share of Babylon rewards + Lorenzo airdrop rewards, total value of $1.5 million) + Lorenzo Points (including staking base points, referral points, etc.)
We will now split the YAT into two separate YATs, named yBBN1 and yLRZ1.
- YAT1, named yBBN1, represents an allocated share of Cap 1 Babylon rewards.
- YAT2, named yLRZ1, represents a share of $1.5 million worth of YAT rewards dedicated to Cap 1.
Through this split, the expected YAT returns could potentially be further enhanced.
Furthermore, Cap 1 users who automatically transferred to Cap 2 will also receive an extra 10% points booster based on their Cap 1 base points.
Lorenzo Points and Reward Distribution
yBBN1 and yBBN2 rewards are now available for claim on the page. yLRZ rewards will require an additional waiting period. Please stay tuned for official updates on the exact date for the redemption application period to commence.
Cap 1 points have been distributed to users, and Cap 2 points distribution will begin soon.
Please note: the displayed total staked data for Cap 2 includes the TVL from Cap 1, and the TVL includes all staking volumes from Cap 1.
Begin Staking
As we embark on Cap 2, we’re not just continuing our momentum, we’re amplifying it. Building on the incredible success of our Cap 1 pre-launch staking event, we couldn’t be more motivated to deliver another exceptional experience to our users.
Join us in this next phase and continue building on the momentum we’ve achieved together.
Stake Now: https://app.lorenzo-protocol.xyz/staking
To stay informed on all Lorenzo staking updates and opportunities, please visit and follow the regular updates on X (Twitter), Medium, Telegram, and Discord.
