Lorenzo Protocol's own cryptocurrency, BANK, has skyrocketed in value by 150% just six hours after its official debut.
The token's rapid surge can be attributed to its recent addition to various trading platforms, including Binance's Alpha Market, and the introduction of a BANKUSDT perpetual contract on Binance Futures offering leverage of up to 50x.
BANK, the governance and utility token for Lorenzo Protocol, had its Token Generation Event (TGE) on April 18 through Binance Wallet in collaboration with PancakeSwap. The sale of 42 million BANK tokens, representing 2% of the total supply, was priced at $0.0048 each, raising $200,000 for the project.
Following its release, BANK began trading on platforms like PancakeSwap, Bitget, and CoinEx, resulting in a market cap of around $22 million.
Lorenzo Protocol focuses on enhancing Bitcoin liquidity through a DeFi platform that enables users to yield rewards on BTC while maintaining ownership. The platform utilizes financial instruments such as Liquid Principal Tokens (LPTs) and Yield-Accruing Tokens (YATs).
BANK holders have the opportunity to stake their tokens to obtain veBANK, which grants them governance privileges and a portion of future allocations.
The protocol is constructed on a Cosmos-based Ethermint appchain, allowing for BTC restaking and interaction with Bitcoin's Layer 1. Its infrastructure supports the on-chain creation and settlement of BTC-backed assets.
The addition of the BANK/USDT perpetual contract on Binance Futures has further boosted the token's momentum. Binance Futures is a platform for derivatives trading that enables users to engage in perpetual contracts with significant leverage.
Binance traditionally selects new tokens on the BNB chain for initial futures trading, reflecting the market's keen interest in Lorenzo Protocol's BTC-focused DeFi infrastructure.
Although it remains uncertain whether Binance will list this new token, the introduction of Binance's community voting system for token listings has raised hopes for smaller market cap projects.