TL;DR: Lorenzo Protocol has partnered with Fractle Finance, an innovative yield trading platform. This collaboration will integrate Lorenzo’s LPTs and YATs into Fractle, aiming to enhance liquidity and provide comprehensive yield trading options, including long and short positions.

We’re proud to unveil a strategic partnership with Fractle Finance, an advanced yield trading platform that boosts capital efficiency by 3x compared to other yield trading platforms, enabling versatile strategies for going long or short on DeFi’s burgeoning yield-bearing assets’ yield.

Through our collaboration with Fractle, we aim to bring new liquidity and trading opportunities to stBTC holders and holders of other future liquid staking tokens (LSTs) in our ecosystem. Doing so will build a comprehensive, dynamic trading environment for staked BTC yields, driving significant value for both ecosystems.

Enhancing stBTC Liquidity And Trading Opportunities

Our team is focused on turning staked bitcoin into LSTs to release liquidity to the downstream bitcoin DeFi ecosystem. With liquid principle tokens (currently, only stBTC — more to come) and multiple Yield Accruing Tokens (YATs), Lorenzo provides staked BTC for various collaborative protocols, each generating different YATs.

Fractle will integrate and create trading options for each YAT.

This enables the yields from different security-needing protocols to be traded efficiently. By facilitating long and short positions on these yields, Fractle will cater to the market’s demand for extensive stBTC yield trading opportunities.

This integration enhances the liquidity and usability of stBTC and allows Fractle to support the diverse yield profiles generated by our ecosystem partnerships. As a result, traders can optimize their strategies, leveraging the specific yields of various projects while managing their risk more effectively.

For LPT and YAT holders, this generates two primary benefits:

Enhanced Liquidity and Trading Depth:
Fractle’s yield trading platform provides a robust market for LPTs and YATs, improving liquidity and offering deep trading pools.

Yield Trading Opportunities:
With Fractle, holders of LPTs and YATs can engage in yield trading, leveraging both long and short positions. This feature is crucial for optimizing returns and managing risks, offering Lorenzo’s users sophisticated tools to maximize their yield-bearing strategies.

About Lorenzo

Lorenzo Protocol is building the first Bitcoin liquidity finance layer, complete with a Bitcoin liquid staking protocol, to achieve the goal of becoming the premier platform for yield-bearing token issuance, trading, and settlement through Babylon. On its platform, Lorenzo connects Bitcoin stakers — regardless of the size of their holdings — with top-tier projects needing liquidity and security, thus unlocking the liquidity of staked assets and capturing world-class yields for stakers. It offers streamlined Bitcoin management and user protections such as staking insurance, node operator credit scores, anti-slashing mechanisms, and validator permits.

This foundation facilitates seamless integration and interoperability for Bitcoin across the Web3 ecosystem, providing a pathway for significant liquidity and yield generation across networks. By issuing two forms of liquid staking tokens — liquid principal tokens (LPTs) and yield accruing tokens (YATs) — to users upon the completion of their BTC deposit, Lorenzo not only enhances liquidity but also establishes a foundation for a DeFi ecosystem built on these token standards. This enables the creation of more complex DeFi products utilizing stBTC (Lorenzo’s native LPT) and YATs, further exploring the possibilities of Bitcoin finance.

For more information, please visit and follow the regular updates on X (Twitter), Medium, Telegram, and Discord.

About Fractle

Fractle Finance introduces an innovative yield derivatives platform that significantly boosts capital efficiency in yield trading across a variety of yield-bearing assets, including LSTs, LRTs, LPDs, RWAs, and more. By tripling the capital efficiency compared to existing solutions and introducing the first market solution for shorting yield rates, our platform fills a crucial gap in the market. With our V2 upgrade, Fractle aims to transform the landscape of liquid restaking tokens (LRTs) by providing a one-stop liquidity solution for LRTFi and their yield derivatives.

Twitter：https://twitter.com/FractleFinance

TG：https://t.me/FractleFinance

Medium：https://medium.com/@fractle.finance

Discord：https://discord.com/invite/VKWVQz6wKS

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