Lorenzo launches Bitcoin pre-staking Babylon and Bitlayer joint mining campaign, earning up to 10x returns
TechFlow Selected TechFlow Selected
Lorenzo launches Bitcoin pre-staking Babylon and Bitlayer joint mining campaign, earning up to 10x returns
Babylon's shared security mechanism opens the door to financial applications in the Bitcoin ecosystem. Lorenzo, built on Babylon, explores further possibilities for Bitcoin finance by creating a liquidity layer, igniting interest in Bitcoin ecosystem restaking, and offering users richer yield opportunities.
Navigating Web3 tides with focused insights
On May 28, 2024, Lorenzo, a liquidity financial layer project for Bitcoin built on Babylon, announced the launch of its pre-staking Babylon campaign and a co-hosted Bitlayer Mining Gala — Head Mine Festival. During this event, users can stake BTC on the pre-staking Babylon activity page to receive stBTC. They can then bridge the generated stBTC to Bitlayer and use it in various on-chain activities such as staking and lending within the Bitlayer ecosystem, thereby earning richer rewards from Lorenzo, Bitlayer, and partner projects.
Additionally, to thank early supporters, Lorenzo has established three incentive pools and introduced multiple reward programs for participants who engage in pre-staking via Babylon, bridging stBTC to Bitlayer for ecosystem participation, or joining other collaborative projects with Lorenzo. Participants are expected to earn over ten times more in points as extra rewards.
This article will guide you through the detailed aspects of the event and introduce Lorenzo—the first liquidity financial layer project based on Babylon—offering an in-depth look at how it aggregates functionalities and advantages from products like Lido, Renzo, and Pendle, unlocking broader possibilities for Bitcoin restaking and expanding the financial landscape of the Bitcoin ecosystem.
Getting to Know Lorenzo: The First Liquidity Financial Layer Based on Babylon
Ethereum’s transition to PoS ushered in the era of ETH staking. Over the past year, the industry has begun forming a preliminary liquidity layer built upon risk-free yield products derived from staked ETH.
However, as the largest asset in the crypto ecosystem, the construction of Bitcoin's liquidity layer is only just beginning.
The approval of BTC ETFs has drawn significant traditional financial capital into the space, while the completion of the Taproot upgrade has notably enhanced Bitcoin’s privacy and smart contract capabilities. These developments have made Bitcoin investment and yield generation one of the most prominent narratives of this market cycle. Building on this momentum, Babylon—a Bitcoin Layer 2 project—enables BTC shared security to generate yield, opening new doors for financialization in the Bitcoin ecosystem. For the first time, BTC gains "native" PoS risk-free returns, transforming BTC liquidity into a valuable investment asset. BTC staking will fundamentally change BTC’s historically low-yield status, turning approximately $140 million worth of staked BTC into modular building blocks for a new financial layer.
Lorenzo serves as the liquidity layer for BTC, designed to match demand and supply for BTC liquidity. It tokenizes BTC staking and its yield-bearing assets, creating downstream ecosystems around these tokens. Compared to ETH and stablecoins, BTC restaking and liquidity layer development present greater non-consensus opportunities.
Built on this vision, Lorenzo is establishing the first Bitcoin liquidity financial layer within the Babylon ecosystem.
Backed by Binance Labs, Lorenzo boasts a highly experienced team with expertise spanning both Web2 and Web3. Core members come from renowned institutions and projects such as Two Sigma Trading (a Wall Street investment bank), ZetaChain, Bybit, Protocol Labs, and Magic Eden, bringing deep experience in financial and cross-chain products. Their mission is to deliver the simplest and most seamless BTC restaking experience for crypto investors:
Users can stake BTC through Lorenzo into Babylon and simultaneously receive stBTC—a liquid staking token representing their staked BTC principal. This allows users to earn staking yields from Babylon while maintaining full liquidity of their BTC assets.
Moreover, to offer users more diverse experiences and richer yield structures, Lorenzo continues to expand new use cases for stBTC, enhancing its utility. Lorenzo aims to integrate stBTC into a broader range of DeFi protocols, enabling its application in lending, futures margin, and spot trading pairs, ultimately offering holders more stable, diversified, and competitive returns.
Notably, Lorenzo will be the first project to implement an innovative principal-and-interest separation mechanism, enabling the creation of complex BTC yield products and trading strategies. This opens vast possibilities for building the first Bitcoin yield or “bond” market.
Event Overview: Pre-Staking Babylon Campaign & Bitlayer Mining Gala
On May 28, 2024, Lorenzo announced the launch of its Pre-Staking Babylon campaign and the co-hosted Bitlayer Mining Gala – Head Mine Festival. The event runs from May 27, 2024, at 21:00 to June 10, 2024, at 21:00.
In the Pre-Staking Babylon campaign, users can stake BTC on the designated page to receive stBTC. All BTC received by Lorenzo will be automatically delegated to Babylon staking upon its mainnet launch. Actual staking progress may be subject to potential staking caps imposed by Babylon.
During the Bitlayer Mining Gala, jointly initiated by Lorenzo and seven partners—Bitlayer, Bitsmiley, BitCow, Avalon Finance, Bitparty, Pell Network, and Enzo Finance—users can bridge their stBTC to Bitlayer and participate in ecosystem activities such as staking and lending. In return, they will earn combined rewards from Lorenzo, Bitlayer, and partner projects, along with up to tenfold bonus points from Lorenzo.
Rewards: 7 Project Yields & Tenfold Points Bonus
This event offers participants diverse and highly attractive rewards from Lorenzo and its partners.
As a key initiative to boost community engagement, Lorenzo Points form a core component of the event rewards. Lorenzo plans to release a full points system rulebook soon. Users following the official guide to join this joint event will be included in the overall incentive program, with the potential to earn over ten times more in bonus points.
Furthermore, to reward early supporters, Lorenzo has set up three dedicated incentive pools and various reward schemes for those participating in the Pre-Staking Babylon campaign, bridging stBTC to Bitlayer for ecosystem engagement, and joining other collaborative projects.
Pond 1
This pool incentivizes users who participate in Lorenzo’s Pre-Staking Babylon campaign to obtain stBTC. Stakers will receive an equivalent amount of stBTC relative to their staked BTC.
Reward distribution rules are as follows:
- All users who fully participate in Lorenzo’s Pre-Staking Babylon campaign by May 28 will earn 30,000 base points per BTC staked, distributed daily until Babylon’s mainnet launch. Users who join after day one will receive points pro-rated by the number of days participated. All BTC locked in Babylon will remain non-withdrawable for three months, with an estimated unlock date of August 31, 2024.
- Lorenzo LRZ Supporter members will receive double points during the first 7 days of active staking.
- For stakers on the Galxe Waitlist, Lorenzo will provide 5x, 2.5x, and 1.25x point multipliers during the first 7 days of participation: the top 100 waitlisted stakers get 5x, the top 1,000 get 2.5x, and the top 10,000 get 1.25x.
- Babylon Pioneer NFT holders participating in the TVL Campaign will share an additional reward pool, provisionally set at 5% of the total points generated.
Pond 2
Pond 2 rewards stBTC holders who bridge their stBTC to Bitlayer and engage with our ecosystem partners’ projects. Rewards are jointly provided by Lorenzo and integrated DeFi platforms, including:
- Bitsmiley — A native BTC stablecoin protocol
- BitCow — A native BTC stable and concentrated liquidity AMM
- Avalon Finance — The premier BTC lending and staking protocol in the Merlin ecosystem
- Bitparty — The first “gamified asset community network” in the BTC ecosystem
- Enzo Finance — The first and best decentralized lending protocol on BitLayer
- Pell Network — A decentralized trust market aiming to diversify BTC and LSD yields across BTC L2 networks and enhance security
- Macaron — The first and native DEX on Bitlayer
Reward distribution rules are as follows:
- For all integrated DeFi projects using stBTC, Lorenzo will take two TVL snapshots of stBTC across all ecosystem partners during the mining gala. Users recorded in each snapshot will earn points based on the total amount of stBTC they contributed toward the partners’ business goals. Criteria may vary by project.
- Each stBTC contributed to any partner’s DeFi product per snapshot earns 10,000 points.
- Additionally, Bitlayer OG Pass holders receive a 10% bonus in Pond 2 rewards. Participants in the Bitlayer Mining Gala will also receive a Bitlayer Mining Gala Pioneer SBT, qualifying them for a future $BTR token airdrop.
- Users can also earn additional rewards directly from the DeFi projects, with specific amounts determined by each partner.
Pond 3
Lorenzo will allocate a portion of bonus points to users introduced by partner projects such as Particle Network. The full list will be updated shortly on Lorenzo’s social media channels.
In addition, the event includes a referral reward program: Each participant will receive a unique invite code shareable on Twitter. Each user can enter an invite code only once and be referred only once. For every new user successfully invited via your code, you will receive 20% of the points they earn from staking. Meanwhile, the invited user will receive an extra 5% bonus points on the points earned from staking.
Get Involved: How to Explore the Lorenzo Ecosystem
Lorenzo aims to deliver the simplest and most seamless BTC restaking experience for crypto investors, unlocking liquidity while capturing optimal staking yields. Whether you’re an experienced DeFi user or a newcomer to crypto, Lorenzo’s step-by-step tutorial makes it easy for anyone to get started.
If you have any questions, feel free to join the Lorenzo community, where community managers are ready to assist you promptly.
Conclusion
Babylon’s shared security mechanism unlocks financial innovation in the Bitcoin ecosystem. Lorenzo builds a liquidity financial layer on Babylon, exploring new frontiers in Bitcoin finance, fueling excitement around Bitcoin restaking, unleashing capital liquidity, and creating richer yield opportunities for users.
This event not only offers diverse reward mechanisms but also leverages strong technical infrastructure and platform advantages to lay the foundation for further growth and prosperity in the Bitcoin ecosystem.
We welcome everyone to join the Pre-Staking Babylon campaign and the Bitlayer Mining Gala, becoming pioneers in Bitcoin financial innovation and witnessing together the rise and evolution of Lorenzo and the Bitcoin ecosystem!
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
