Lorenzo Protocol Launches PancakeLP Vault

Building on the success of sUSD1+ OTF, the first yield product designed for USD1 holders, Lorenzo Protocol is adding a new DeFi integration designed to enable the OTF's participants to explore earning additional yield and expand the utility and application options for sUSD1+.

That integration, PancakeLP Vault, is now live on BNB Smart Chain, providing an accessible way to participate in PancakeSwap’s yield ecosystem. With a minimum deposit of $20, users can start earning PancakeSwap trading fees and Lorenzo Season 2 Points with a 1.5x multiplier (full Season 2 points details will be shared in an upcoming dedicated post).

Deposit → https://app.lorenzo-protocol.xyz/launchPad/earn/PCSsUSD1

PancakeLP Vault is the first vault in our new Lorenzo Earn product line. Each Lorenzo Earn product represents a carefully curated investment strategy that automatically manages your idle assets across multiple DeFi protocols to maximize returns while managing risk.

About PancakeLP Vault

PancakeLP Vault is a dual-asset liquidity vault that deploys capital into the sUSD1+/USD1 pool on PancakeSwap V3, simplifying the provision of concentrated liquidity. Users must provide both sUSD1+ and USD1, which the vault combines into concentrated liquidity positions on their behalf. The vault then automatically manages the LP position. In return, users receive a non-transferable share token, PCS-sUSD1, which represents their stake in the pool.

To participate, users can head to the Lorenzo dApp to obtain sUSD1+ by depositing into the sUSD1+ OTF, and then acquire USD1 on the open market.

As part of the sUSD1+ ecosystem, PancakeLP Vault is designed for users who want exposure to LP yield without manually managing pairing, price ranges, or reward claiming. The vault handles liquidity deployment and ongoing position management automatically, removing the complexity of direct DEX interaction by offering a streamlined “deposit-and-earn” experience for passive liquidity providers.

Product Highlights

PancakeLP Vault simplifies providing concentrated liquidity on PancakeSwap V3. Users deposit sUSD1+ and USD1, and the vault manages liquidity positions and rewards handling automatically. Lorenzo manages the range dynamically based on PancakeSwap V3’s market conditions, and our strategy team handles all configurations. No user actions are required.

Users earn yield from:

• PancakeSwap V3 trading fees
• Season 2 Lorenzo points (1.5x multiplier, more details to be shared in our upcoming dedicated Points announcement)

The product provides 24/7 real-time access to deposit and withdrawal services.

Supported Deposit Assets

The vault supports deposits in both sUSD1+ and USD1. To participate, users must provide both assets (single-asset deposits are not supported, and the vault does not perform automatic swaps/asset conversions during the deposit); during the deposit process, the system calculates and displays the required amounts of sUDS1+ and USD1 based on the pool's real-time pricing and ratio.

Once deposited, the sUSD1+ and USD1 are then deployed into the liquidity pool by the vault. The vault manages position setup and liquidity deployment, so users do not need to handle technical LP configuration.

Rewards

PancakeLP Vault generates returns from PancakeSwap V3 trading fees, receivable for users upon initiating a withdrawal.

Please Note: Trading fees are not reflected by Unit NAV and are not reinvested.

Users also earn Season 2 Lorenzo points with a 1.5x multiplier.

Reward accumulation and distribution
All rewards obtained (such as transaction fees) are automatically accumulated and recorded. These rewards will not be automatically reinvested in the fund pool, but will be settled together with the corresponding underlying assets when the user redeems the share.

Min. Deposit

The minimum total deposit is 20 USD. This is calculated as the combined value of:

• sUSD1+
• USD1

The total value of both assets must be ≥ $20 to complete a deposit, and at least one asset must have a minimum deposit equivalent to 10 USD.

PCS-sUSD1 (Vault Share Token)

When you deposit into PancakeLP Vault, you receive a vault share token called PCS-sUSD1.

PCS-sUSD1 represents your ownership share of the vault’s pooled liquidity, acting as a vault accounting primitive used to manage deposits and redemptions within the Lorenzo platform. It tracks your position inside the vault and determines your exposure to trading fees and rewards.

This token is non-transferable. It cannot be:

• Sent to another wallet
• Traded on secondary markets

PCS-sUSD1 can only be:

• Minted when you deposit into the vault
• Burned when you withdraw from the vault

Withdrawals

Withdrawals can be submitted at any time and support both full and partial amounts.

Withdrawals are processed as T+0, meaning users receive assets immediately after submitting a withdrawal request.

When a user initiates a withdrawal, the vault contract immediately pays the user the corresponding value of the two underlying assets and all the accumulated rewards corresponding to their shares from the fund pool based on the real-time Unit NAV at the time of redemption.

All withdrawals are always returned as dual assets (sUSD1+ and USD1). Single-asset withdrawals are not supported, and no additional swaps are performed to rebalance assets.

Why PancakeLP Vault Matters

PancakeLP Vault serves as a major on-chain use case for sUSD1+, giving holders a simple, automated way to earn PancakeSwap yields without managing LP ranges or claiming rewards manually. By converting deposits into active, auto-managed liquidity positions, it expands sUSD1+’s real utility and contributes to the stablecoin’s market depth on BNB Smart Chain.

The vault also strengthens Lorenzo’s role as an on-chain investment bank, bridging professional asset management with decentralized infrastructure. Through products like PancakeLP, Lorenzo continues to make institutional-grade strategies accessible to everyday users while deepening liquidity across the WLFI ecosystem.

Product FAQs

1. What is PancakeLP Vault？
   PancakeLP Vault is a managed vault that lets you provide liquidity to a predefined PancakeSwap V3 pool (e.g., sUSD1+/USD1) without manual intervention. You deposit both assets in the pair, and the vault handles all complex operations, such as adding liquidity, collecting fees, and harvesting rewards. You receive share tokens representing your portion of the total vault assets.
2. How do I deposit and withdraw?
   Deposit: You must deposit both underlying assets (e.g., USD1 and sUSD1+) simultaneously in the current pool ratio. After your transaction is confirmed on-chain, you will instantly receive non-transferable share tokens in your wallet.
   Withdraw: To exit, you simply redeem your share tokens. The vault will instantly return the corresponding proportion of the two underlying assets, plus any accrued rewards to your wallet in a single, atomic transaction. There is no waiting period.
3. What is the share token, and can I trade it?
   When you deposit, you receive a vault share token (e.g., PCS-sUSD1). This token acts as your proof of ownership in the vault pool. It is non-transferable, meaning it can only be minted (by depositing) and burned (by withdrawing) within the Lorenzo platform. It cannot be sent to other addresses or traded on any secondary market.
4. How are rewards distributed?
   Rewards earned by the vault are automatically collected by the protocol. When you withdraw your share tokens, you will instantly receive your proportional share of these accumulated rewards, distributed alongside your principal in underlying assets. There is no need for a separate "claim" transaction.
5. How is the Unit NAV calculated?
   The Unit NAV (Net Asset Value) is the value of one share token, calculated in real-time as:
   Unit NAV = Total Value of Underlying Assets / Total Share Supply
   It only includes the value of the principal assets (e.g., USD1, sUSD1+) in the vault. It excludes all accrued rewards and fees, which are calculated and distributed separately upon withdrawal.
6. What are the main risks?
   Key risks include the inherent impermanent loss associated with providing liquidity, smart contract risk of the vault and underlying protocols (PancakeSwap), and market volatility of the underlying assets. Please ensure you understand these risks before participating.