In the long history of cryptocurrency, if there is a battle worth being repeatedly written into textbooks, it must be the 'Curve War' that erupted on Ethereum in 2021.
It was a war without gunpowder, yet filled with the scent of money. Major stablecoin projects (such as FRAX, UST, DAI) began to frantically purchase CRV tokens and lock them (veCRV) for voting, in order to achieve higher yield in their pools on Curve and attract more liquidity. Subsequently, the emergence of the 'nested doll' protocol Convex further pushed this battle to a climax.
In that war, those who understood the situation, even if they just hoarded governance tokens like CRV, received dozens of times returns. Because what they held was not just coins, but the 'baton'—the power to direct billions of dollars.
Fast forward to 2025, and the Bitcoin ecosystem (BTCFi) is surging. Dozens of Bitcoin Layer 2 public chains are rapidly building infrastructure, and hundreds of DeFi protocols are eagerly awaiting. What do they lack the most? The liquidity of core assets like Bitcoin.
Whoever masters the distribution rights of Bitcoin liquidity will be the next Curve. In my eyes, the Lorenzo Protocol has already seized this baton.
Today, we will deeply analyze why the BANK token is highly likely to replicate the trajectory of CRV from years ago, becoming the core target of the next 'liquidity war.'
Chapter One: Why Must Layer 2 'Bribe' Lorenzo?
First, we must recognize the current state of the Bitcoin ecosystem. The current Bitcoin Layer 2 (such as Merlin, B² Network, Bitlayer, etc.) is in a state of 'feudal fragmentation.' They all require Bitcoin as collateral to maintain network security and also need Bitcoin as the base currency for the DeFi ecosystem.
However, the amount of Bitcoin in users' hands is limited. Why would users transfer Bitcoin to your chain? The only reason is: high yield.
This brings us back to Lorenzo's home ground. Lorenzo, through Babylon technology, has gathered a massive amount of Bitcoin deposits. It resembles a huge reservoir. And those Layer 2 public chains are like downstream farmland desperately in need of irrigation. Whose farmland can get more water? This is not decided by Lorenzo's team but by the voting results of veBANK (locked BANK).
This is the fuse of the war. If I were a Layer 2 project team, in order to open the gates of Lorenzo's reservoir for me, to have more TVL (total locked amount) on my chain, I must spare no effort to control the voting rights of BANK. I could either buy BANK on the market for locking or use my own tokens to 'bribe' those retail holders of BANK, asking them to vote for me.
This is the logic loop: Layer 2 needs TVL → TVL needs Bitcoin from Lorenzo → Lorenzo's distribution rights are in BANK → Layer 2 must rush to buy BANK.
Chapter Two: The Value of BANK—Not Just a Shovel, But a Remote Control
Many retail investors still understand tokens only in the stage of 'buy low, sell high.' But in the eyes of institutions, the attribute of a governance token like BANK is 'control.'
In the DeFi world, liquidity is life. A DeFi protocol without liquidity is just code trash. Lorenzo, by controlling the generation and distribution of the most fundamental asset (stBTC), actually holds the life-and-death power of these protocols.
When you hold BANK and lock it, you are not just an investor; you become a 'renter.' You can sit at home and wait for those projects in dire need of liquidity to come and pay you (bribery returns). The Votium platform back then was specifically designed for this, where CRV holders could achieve annualized returns of over 50% just from receiving bribes.
This scene will inevitably be replayed in the Bitcoin ecosystem. Moreover, considering that the capital volume of Bitcoin is more than three times that of Ethereum, the scale of this war will only be larger, and the amount of bribery will only be more exaggerated.
Chapter Three: Scarcity—The Locked Circulation
In addition to the explosive demand, we must also look at the supply side. Lorenzo employs a classic veToken model, which means that the BANK token has a strong 'locking incentive.'
If you want to participate in voting or wish to achieve higher financial acceleration (Boost), you must lock BANK. The longer the locking period (for example, 4 years), the higher your weight will be. This is a huge siphon for the circulating supply.
Imagine this: on one side, Layer 2 project teams and institutions are frantically purchasing; on the other side, a large amount of BANK is locked into contracts for up to 4 years and cannot be sold. The circulating chips in the market will become increasingly scarce. This extreme imbalance in supply and demand can only be balanced by an explosive increase in price.
This is what is known as a 'supply-side shock.' When buying pressure surges while selling pressure exhausts, what shape will the K-line take? Experienced traders already have an idea.
Chapter Four: The Deep Intent of Binance Labs' Layout
Here, we must again mention the investment background of Binance Labs. Why does Binance have faith in Lorenzo? Because Binance understands the logic of 'exchanges' too well. Lorenzo essentially builds a 'liquidity exchange' on-chain.
As the leader of centralized exchanges (CEX), Binance knows very well how valuable 'listing rights' and 'traffic distribution rights' are. In the world of Bitcoin's blockchain, Lorenzo plays a similar role. It decides which chain can receive funding, and which strategy pool can receive incentives.
Binance's bet on Lorenzo is essentially a bet on the future 'power center' of the Bitcoin ecosystem. For retail investors, following the 'game of power' is often much more reliable than following technical indicators.
Chapter Five: How to Ambush This War in Advance?
Since we anticipate that war is about to break out, what should we do?
First, establish a base position. Before the market fully realizes the governance value of BANK (which is now), acquire chips at a lower cost. The current price may only reflect its 'mining value' and not its 'governance premium.'
Second, learn to lock assets. Don't just think about short-term trading once you have the coins. In the veToken model, diamond hands (long-term holders) receive the highest returns. Research Lorenzo's locking mechanism, turn your BANK into veBANK, and be prepared to receive future “bribery” airdrops.
Third, focus on ecological trends. Watch those Layer 2 projects that are connected to Lorenzo. Which one is taking the most aggressive actions? Which one has raised the most funding? They are likely to be the biggest buyers of BANK in the future.
Conclusion
Brothers, the financial market is always a place for cognitive monetization.
While others are focused on how much Bitcoin has risen or fallen today, the smart money is already thinking about how to control the flow of Bitcoin. The 'Curve War' has created a group of billionaires because they understood the game of Ethereum liquidity. The current Lorenzo Protocol gives us a ticket to the Bitcoin liquidity battlefield.
The war horn has already faintly sounded. Will you choose to stand on the sidelines and watch the excitement, or will you choose to hold tightly to your BANK and become the operator of this trillion-dollar liquidity feast?
The choice is in your hands.
@Lorenzo Protocol #LorenzoProtocol $BANK
