In the fast-evolving world of Bitcoin DeFi (BTCFi), one persistent problem has plagued liquidity providers and stakers: the exit premium. This phenomenon rewards early exiters at the expense of those who remain, creating a prisoner's dilemma where rushing to the door becomes the rational--yet destructive--choice. Lorenzo Protocol, the institutional-grade Bitcoin liquidity finance layer, fundamentally disrupts this dynamic.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
In the fast-evolving world of Bitcoin DeFi (BTCFi), one persistent problem has plagued liquidity providers and stakers: the exit premium. This phenomenon rewards early exiters at the expense of those who remain, creating a prisoner's dilemma where rushing to the door becomes the rational--yet destructive--choice. Lorenzo Protocol, the institutional-grade Bitcoin liquidity finance layer, fundamentally disrupts this dynamic.
What is the Exit Premium?
The exit premium emerges in many DeFi and cry