Lorenzo Protocol Launches Incentive Program: YATs and Points System
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Lorenzo Protocol Launches Incentive Program: YATs and Points System
Lorenzo official recently released a detailed incentive program, inviting more users to explore Lorenzo's innovative and simplified BTC management and yield mechanisms.
Navigating Web3 tides with focused insightsLorenzo is dedicated to building the first Bitcoin liquidity finance layer based on the Babylon ecosystem, offering crypto investors a simple and seamless experience for liquid staking of BTC assets. Regardless of the amount held, users can easily stake their Bitcoin to earn secure native staking yields, while also gaining diverse rewards and returns by participating in the Lorenzo DeFi ecosystem.
To promote ecosystem growth, the Lorenzo team has recently launched a detailed incentive program, inviting more users to explore Lorenzo’s innovative and simplified BTC management and yield-generation mechanisms.
Current Ways to Participate in Lorenzo
- Participate in Bitcoin Staking: Users can stake BTC or other wrapped BTC assets (depending on specific Staking Plan requirements) on the Lorenzo platform to receive liquid staking tokens issued by Lorenzo;
- Join the Lorenzo DeFi Ecosystem: Users may choose to further use their obtained stBTC (the principal token among Lorenzo’s liquid staking tokens) in various projects within the Lorenzo DeFi ecosystem to gain additional incentives and yields. This method offers users opportunities for extra rewards and yield maximization.
The key to both opportunities lies in how Lorenzo tokenizes its incentives.
Lorenzo Incentive Tokenization
Lorenzo's liquid restaking tokens introduce an innovative principal-yield separation mechanism, tokenizing Bitcoin staking into Liquid Principal Tokens (LPTs) and Yield Accrued Tokens (YATs), thereby advancing Bitcoin liquidity finance.
https://x.com/LorenzoProtocol/status/1807782965251850360
Liquid Principal Token (LPT)
An LPT represents the right to reclaim the staked Bitcoin principal after the staking period ends. For example, if a user deposits 10 BTC into a staking contract, the LPT they receive entitles them to withdraw those 10 BTC.
stBTC as the Official LPT
There will be multiple LPTs in the Lorenzo ecosystem, but currently the Lorenzo protocol designates stBTC as its official Liquid Principal Token (LPT) to prevent liquidity fragmentation. stBTC is pegged 1:1 to the staked Bitcoin, aggregating all staked Bitcoin liquidity.
Yield Accrued Token (YAT)
Yield Accrued Tokens (YATs) are designed to incentivize users to participate in staking and obtain stBTC. A YAT represents the right to claim yield after the staking period ends. Each YAT accumulates yield from Bitcoin restaking.
Since YATs are freely tradable, anyone holding YATs can use them across other DeFi applications.
Ecosystem Participation Rewards
The Lorenzo incentive program consists of two key components: YATs and Points.
YATs (Yield Accrued Tokens)
Purpose: To incentivize user participation in staking plans.
Function: Represents rewards claimable at the end of the staking period, including native rewards from the respective staking plan and future Lorenzo token airdrops.
Points (Lorenzo Points)
Purpose: To incentivize users to stake and participate in the DeFi ecosystem.
Function: Primarily used for future project token airdrops and other scenarios.
Lorenzo Points System
Our points system aims to incentivize users to stake and use stBTC across various activities. Below is an overview of opportunities to earn points:
Base Points
Source: Participation in BTC and other wrapped BTC asset staking. Base point rules may be adjusted according to future campaign arrangements, and we will promptly update you of any changes. Current official campaign: Lorenzo Pre-staking Babylon Campaign.
Campaign Guide:
Duration: Starting at 21:00 Beijing Time on May 27, 2024, until Babylon mainnet launch or until Lorenzo’s staking pool reaches 250 BTC deposited.
Staking Reward: Users earn 1,500 points per day for every 1 BTC staked.
Distribution Method:
- Lorenzo will allocate points proportionally based on the actual staked amount. For example, staking 1.2 BTC earns 1,800 points (1,500 × 1.2) the next day;
- Points are allocated based on actual participation days. For example, staking 1.2 BTC for 9 days earns 16,200 points (1,500 × 1.2 × 9);
- Per updated rules, users who participate beyond 20 days will continue earning points at a rate of 1,500 points/BTC/day.
Note: Users may submit redemption requests for BTC in the pre-staking pool starting August 31, 2024.
Referral Points
Each user will have a unique referral code shareable on Twitter. For each new user successfully invited using your code, you will receive 20% of the points earned by that user (i.e., the base staking points listed above). Additionally, users who join via a referral code will receive an extra 5% bonus points on their earned base staking points.
Early Bird Points
Source: Participation in the Lorenzo LRZ Supporters and Lorenzo TVL Campaign waitlists.
Distribution Method:
Lorenzo LRZ Supporter Double Points Reward: Earn 2× points during the first 7 days after staking.
Lorenzo TVL Campaign Waitlist Multiplier: Bonus multipliers apply during the first 7 days:
1) First 100 stakers: 5× points.
2) First 1,000 stakers: 2.5× points.
3) First 10,000 stakers: 1.25× points.
Note: The above Early Bird Points apply specifically to the Babylon pre-staking campaign.
Collaboration Points
Source: Lorenzo will allocate separate Collaboration Points for specific partnership projects. Exact point allocations will be announced in official collaboration announcements.
Examples:
The Lorenzo Babylon pre-staking campaign provides an additional points pool for holders of Babylon Pioneer NFTs, who will share an extra 5% of total generated points;
Lorenzo allocates additional bonus points for users introduced through partner projects such as Particle Network. Specific details will be confirmed in official announcements.
Campaign Bonus Points
Source: Lorenzo will periodically host joint campaigns, where Campaign Bonus Points incentivize stBTC holders to use stBTC in DeFi activities during specified periods. Only stBTC TVL contributing to business objectives will be counted, and point criteria may vary across projects.
Notes:
- Specific point allocations will be announced with each campaign;
- During special campaign periods, Lorenzo will take multiple snapshots of stBTC TVL across all integrated DeFi projects within the ecosystem;
- At each snapshot, users contributing stBTC to our ecosystem partners will earn points proportional to their total stBTC contribution.
Community Points
Source: Users can earn points by actively participating in community events and development. Specific Community Points rules will be detailed in community announcements.
Other Points
Any additional point schemes will be announced in official project updates.
As of this points program release, some points remain unallocated pending information from partner projects. Lorenzo will continue monitoring progress and updating the community accordingly.
YAT Yield Details:
YAT represents the base interest earned from staking, incentivizing users who stake to obtain stBTC. Please note: All BTC and other wrapped BTC assets received by Lorenzo (per specific Staking Plan requirements) will be automatically staked on Babylon upon its mainnet launch via Lorenzo’s delegation. Actual staking progress may depend on potential staking caps set by Babylon. Stakers will receive an equivalent amount of stBTC relative to their staked BTC.
The first BTC staking campaign currently available is the Lorenzo Babylon Pre-staking Campaign. This campaign’s incentives consist of YAT yields and the above points system. Below are details regarding YAT for this campaign:
- Please note: The yield displayed on the official dApp is an annualized rate;
- The Babylon pre-launch staking campaign has a cap of 250 BTC;
- YAT rewards will be distributed proportionally based on users’ staked amounts;
- Lorenzo will provide up to $1.5 million worth of YAT rewards for successfully staked users, composed of Babylon’s native staking yield and Lorenzo token airdrops;
- Yield calculation reference: Expected $1.5M airdrop value divided by current total BTC locked in the pre-staking pool;
- Users may submit redemption requests for BTC in the pre-staking pool starting August 31, 2024. Note: If the Babylon mainnet launches earlier, Lorenzo will delegate the staking. The lock-up period for BTC staked into Babylon will follow Babylon’s mainnet rules.
FAQs
Q1: What are the components of staking rewards?
Staking rewards consist of two parts:
1. YAT-based yield: The base interest earned from staking, i.e., YAT (Yield Accrued Token);
2. Points rewards: In addition to base yield, users earn bonus points from staking. Furthermore, users can leverage their stBTC in DeFi activities to gain even more diversified incentives and returns.
Q2: If I bridge stBTC to another ecosystem for DeFi participation, will my staking points disappear?
No, staking points will not disappear, as they are tied to the EVM address used during staking.
Q3: If I sell stBTC, will my staking yield and points disappear?
Points will not disappear, as they are linked to the original staking EVM address. Yield is tied to YAT and is unaffected by selling stBTC.
Q4: If I buy stBTC on the secondary market, will I receive Lorenzo and Babylon staking yield and points?
No, purchasing stBTC on the secondary market does not grant staking yield or points. The YAT and points systems are designed to incentivize users who generate stBTC through staking and then participate in the DeFi ecosystem.
Q5: After withdrawal is enabled, if a user withdraws stBTC, will they continue to earn yield and points?
Once a user withdraws stBTC, no new yield or points will accrue. However, users can redeem accumulated YAT for project yield tokens, with redemption amounts determined by the proportion of YAT held and the total yield tokens provided by the project. To earn new yield, users must re-stake BTC (Lorenzo also plans to launch an stBTC auto-compounding program in the future to simplify the re-staking process).
Q6: What advantages do early participants have?
Base Points: Early participants can accumulate base points faster. After reaching the base point cap, users continue to earn time-weighted bonus points.
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