yLRZ Rewards: Maximizing User Rewards While Strengthening the Lorenzo Ecosystem

Introduced for our Cap 1 & Cap 2 Babylon staking campaigns, yLRZ is an additional $BANK rewards pool to thank our early users for supporting our roadmap.

Now, our next step is to roll out the yLRZ distribution. In doing so, our goal is to maximize the upside for our users while also promoting the long-term health of the Lorenzo ecosystem. These two strategic pillars align with our mission of growing alongside our community — we’re all in this together.

In this article, we’ll share the distribution plan, including a recap of yLRZ rewards, claiming rules, and rewards calculations.

⚠️ Please note: We are actively preparing the yLRZ distribution. This article serves as a pre-announcement to keep Lorenzo community members informed in advance of the upcoming launch date. Stay tuned to our official channels for future updates coming soon.

What Is The yLRZ Reward?

yLRZ is an additional $BANK reward pool set up by Lorenzo during the Babylon Staking Campaign’s Cap 1 and Cap 2 phases to thank users for their support.

• Cap1 (yLRZ1 pool): $1.5M USD worth of $BANK (1% of the total $BANK supply / 21,000,000 $BANK)
• Cap2 (yLRZ2 pool): $3M USD worth of $BANK (2% of the total $BANK supply / 42,000,000 $BANK)

Because yLRZ1 and yLRZ2 YAT tokens were not issued during the campaign, rewards are being calculated directly based on the amount of yBBN1 and yBBN2 held by users in the Cap1 and Cap2 campaigns, and will be distributed across multiple claim periods (epochs).

Please Note:

The token amounts were calculated based on the reference $BANK fully diluted valuation (FDV) of $150M during the campaign period from June to August 2024. Since then, Lorenzo has achieved significant development milestones, including the $BANK TGE and the launch of the first USD1 yield product, USD1+ OTF. The actual value of the $BANK rewards will fluctuate with market conditions, but the promised token amounts remain fixed.

How To Claim yLRZ Rewards

We will be releasing yLRZ rewards in installments according to epochs (1 month per epoch), with rewards to be distributed at the conclusion of each epoch. Each epoch will allocate yLRZ rewards to eligible users according to their participation in the current period.

To receive your yLRZ rewards at the end of an epoch, both of the following participation elements must be met during the epoch:

1. Previous Participation Record: User participated in an activity during Cap1 or Cap2 and held yLRZ shares (anchored by yBBN1/yBBN2).
2. Participation in the Current Epoch: Join Lorenzo activities each epoch (e.g., OTF deposits or veBANK voting). You’ll earn personal $BANK rewards from these activities, and those rewards are also used to calculate your yLRZ allocation for that epoch.

How rewards are calculated

At the end of each epoch, the system will count the personal $BANK rewards obtained by users, and calculate its proportion to the total personal $BANK rewards of all eligible users in the current epoch. This proportion determines users’ allocation amount in the yLRZ reward pool for the epoch.The total lifetime maximum rewards an individual user is entitled to = user’s individual yLRZ share × total prize pool to which the share belongs (Cap1 prize pool or Cap2 prize pool).

Calculation example (the data is for demonstration only and does not represent actual figures or the actual situation) Assuming that there are 100,000 $BANK in the yLRZ reward pool for this epoch, only A and B are eligible users:

• A current epoch through OTF deposit, veBANK vote, etc., 200 $BANK rewards
• B received 50 $BANK profits in the current epoch
• Total rewards for two people = 200 + 50 = 250 $BANK

Calculate the ratio:

• A proportion = 200/250 = 80%
• B proportion = 50/250 = 20%

Allocation for this epoch:

• A can receive = 100,000 × 80% = 80,000 $BANK
• B can receive = 100,000 × 20% = 20,000 $BANK

From this example, it can be seen that users who participate more and have higher personal $BANK returns in the current epoch will account for a larger proportion of the reward distribution in that epoch. They’ll also receive their allocated yLRZ rewards faster than users who participate less.

Please Note:

1. If the proportionally calculated reward amount exceeds your remaining yLRZ reward balance, only the remaining balance will be issued, and it will not exceed your personal maximum limit.
2. The reward allocation for each epoch will be dynamically determined based on the prize pool size and overall ecosystem activity, and distributed according to the calculation method described above. The amount a single user can claim depends on their remaining entitlement and the distribution results for that epoch, and will not exceed the maximum allocation available for that epoch.
3. If a user does not participate in the platform’s designated earning activities during the current epoch and has no personal $BANK income, the yLRZ reward for that epoch will not be issued and will be deferred to a future epoch in which the user meets the eligibility criteria.
4. If you do not earn personal $BANK rewards during an epoch, you will not be able to claim yLRZ rewards at the end of the epoch. However, your yLRZ rewards are not lost. It will be postponed to the next epoch for distribution, assuming participation requirements are met in that next epoch.

Shared Success Through Ecosystem Alignment

In every step of the Lorenzo journey, our priority has remained the same — maximizing rewards for our users while building the long-term strength of the Lorenzo ecosystem.

By aligning individual incentives with the health of the protocol, we ensure that participation benefits everyone, not just in the short term but for years to come. With yLRZ, active engagement can translate directly into greater personal rewards by using Lorenzo products, while collective activity drives a stronger, more sustainable platform.

Together, we’re building an ecosystem where user success and protocol success go hand in hand, because when everyone is aligned, everyone wins.

Team Lorenzo is sincerely grateful for your support.