Lorenzo Protocol collaborates with Cetus Protocol, a liquidity protocol and decentralized alternate on the Sui Community.
The strategic partnership will see Lorenzo Protocol combine its stBTC token onto the Sui community through Cetus Protocol. The partnership goals to strengthen Bitcoin liquidity on the Sui community by encouraging the shopping for, holding and use of stBTC. Lorenzo Protocol introduced the mutual settlement on the X platform at the moment, November 26, 2024.
Carry Bitcoin entry to the Sui ecosystem
The partnership will enable BTC holders on the Sui community to stake Bitcoin and mint stBTC, Lorenzo’s liquid Bitcoin staking token. The partnership goals to advertise the participation of Bitcoin customers within the Sui community. Moreover, the partnership goals to encourage BTC customers to make their tokens work for them by staking Bitcoin and incomes incentives by way of Lorenzo liquid resttaking token (stBTC).
The initiative can be a part of efforts to increase the decentralized monetary ecosystem. The partnership will see Lorenzo Liquid resume the token as a major monetary instrument within the Sui Community, permitting customers to lend, borrow and commerce Bitcoin merchandise on the community.
Sui, a layer 1 blockchain designed to allow quick, low-latency transactions, is more and more turning into a most well-liked selection for real-time functions reminiscent of DeFi, gaming, and different responsive providers. The creators of Sui launched the community in 2023 and up to now, the blockchain has amassed roughly $1.4 billion in TVL.
Unlocking Bitcoin’s untapped potential
Though Bitcoin has the biggest market capitalization, valued at $1.8 trillion, this market stays an enormous untapped potential. For instance, sensible functions and use circumstances for producing returns are comparatively restricted within the Bitcoin market.
Up to now, the one method Bitcoin holders might earn cash from their holdings was by depositing their cash in CEXs or utilizing strategies that convert their property into wrapped tokens (reminiscent of WBTC).
Bitcoin’s limitations within the DeFi panorama stop holders from participating in a variety of monetary actions. This makes it tough for customers to work together with DeFi actions to earn diversified returns, in comparison with Ethereum, Solana, and so on.
These corporations are working to remodel the Bitcoin market by permitting the staking of BTC, turning BTC into an income-generating instrument.
Ether permits customers to stake native tokens and earn incentives because of this. Equally, Bitcoin Layer 2 networks are starting to permit customers to stake Bitcoin to safe transactions and consequently earn rewards.