17 May 2025
Lorenzo Protocol Integrates BabylonChain to Build Bitcoin Application Layer
The alliance will be key to Lorenzo’s BTC shared security and bitcoin liquid staking efforts, helping the team usher in a new era of scalability, security, and innovation for bitcoin
29 February 2024 - Lorenzo Protocol, the project dedicated to building the first-ever liquid staking Bitcoin L2-as-a-service protocol secured by BTC shared security, today announced that they will be integrating BabylonChain into their upcoming modular L2 Bitcoin stack, setting the stage for a scalable and performant Bitcoin application layer that can serve as a cornerstone for the next generation of digital assets and applications.
The Lorenzo modular L2 architecture enables the following:
- Enhancing bitcoin's scalability and storage capabilities through BTC-secured modules
- Enable execution of smart contracts, so that users can build dApps utilizing bitcoin assets.
- L2-as-a-Service, allowing users to customize their own bitcoin L2 by combining different execution, settlement, and data availability modules, which can be secured by bitcoin staking and timestamping.
- Asset compatibility, decentralized wrapping of bitcoin-native assets to the L2, and the settlement of smart contracts on bitcoin.
Thanks to Babylon's technology, these components will draw their security from the BTC shared protocols currently being built. The result will be a native, trustless, and self-custodial bitcoin staking protocol on the bitcoin blockchain (requiring no bridges).
Lorenzo Protocol will also be building its bitcoin liquid staking protocol on top of Babylon technology, to unlock liquidity for bitcoin stakers, democratizing access to the bitcoin L2 ecosystem by lowering the threshold for staking, and implementing mechanisms to protect participants from slashing penalties.
The two teams will both be present at Bitcoin Renaissance on 29 February 2024, with Lorenzo Protocol’s founder, Matt Ye, set to give a Keynote presentation from 14:10-14:25.
Find more information on Lorenzo Protocol on our website
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