I am often asked two questions:
First, is the concept of liquidity sovereignty too advanced?
Second, why can the Lorenzo Protocol achieve it?
My thought is:
It is not that Lorenzo created the demand for liquidity sovereignty.
It is the maturity of the multi-chain ecosystem that makes liquidity sovereignty inevitable.
Rather, it is the Lorenzo Protocol.
Just at this historical juncture,
It provides the most comprehensive solution.
In this article, I want to discuss from the perspective of industry evolution.
Explain why now is the beginning of the era of sovereign liquidity.
And why Lorenzo occupies this position.
First, the immature phase of the multi-chain ecosystem has ended.
Three years ago, we were still debating 'multi-chain or cross-chain'.
Two years ago, we were still testing the security of various bridges.
A year ago, we were still experiencing the unique DeFi of different chains.
Now, the situation is clear:
Multi-chain is a reality, not a choice.
But the accompanying problem is:
Users' assets are spread across different chains.
Liquidity fragmentation exists in different ecosystems.
Yield opportunities are fragmented.
Risk management has become more complex.
We came from a simple world (single-chain DeFi).
Entered a complex world (multi-chain DeFi).
But our liquidity management tools are still stuck in the simple era.
Second, the awakening of liquidity providers.
Early LPs focused on:
Which pool has the highest APY?
Which protocol has the richest airdrop?
Which mine can recover its costs the fastest?
But now, mature liquidity providers are starting to think:
How is my liquidity allocated across chains?
How is my risk managed systematically?
How can my yields be sustainable?
How can my assets maintain sovereignty?
This awareness shift is fundamental.
Liquidity providers are no longer satisfied with 'renting assets',
They demand 'strategic deployment of assets'.
Third, the cross-chain dilemma of BTC has become the focus.
As the largest crypto asset by market capitalization,
BTC's awkward position in a multi-chain world is becoming increasingly apparent:
It has value but lacks liquidity utility.
It has demand but lacks sovereign-grade solutions.
It has holders but lacks autonomous tools.
This contradiction will become undeniable in 2023-2024.
The market needs:
A cross-chain solution that does not sacrifice security.
A liquidity tool that does not lose sovereignty.
An infrastructure that does not rely on a single entity.
Fourth, the timing of Lorenzo Protocol's choice.
Lorenzo did not rush to launch during the multi-chain frenzy of 2021.
Did not struggle to survive during the panic of the bear market in 2022.
It was built in 2023 and launched in 2024—
Just at the turning point of the multi-chain ecosystem shifting from 'quantity expansion' to 'quality building'.
This timing means:
The team has seen the real demand after the frenzy.
The product avoids early immature infrastructure.
The solution addresses market-validated pain points.
Fifth, Lorenzo's complete sovereign logic.
Many protocols only solve single-point problems:
Some focus on cross-bridge security.
Some focus on yield optimization.
Some focus on chain expansion.
But what Lorenzo is building is a complete sovereign logic:
Asset layer: BTC maintains its native nature.
Liquidity layer: tBTC achieves cross-chain liquidity.
Yield layer: Multiple strategy autonomy.
Governance layer: BANK realizes decentralized evolution.
Security layer: Decentralized guardian network.
This is not a function overlay,
This is the systemic implementation of the sovereign liquidity paradigm.
Sixth, the network effects of sovereign liquidity.
Early network effects stem from 'more chain support'.
Mid-term network effects come from 'more liquidity entering'.
But the ultimate network effect comes from:
More sovereign liquidity providers choose Lorenzo as their strategic layer.
This network effect is reflexive:
The more sovereign LPs choose Lorenzo →
Lorenzo's liquidity standards increasingly become industry benchmarks →
More protocols adapt to this standard →
The more choices sovereign LPs have for Lorenzo →
More sovereign LPs join Lorenzo.
This is not merely scale growth,
This is the establishment and strengthening of sovereign standards.
Seventh, why can it be realized now?
Because the infrastructure has matured:
A secure cross-chain communication layer (such as LayerZero, Wormhole).
Mature DeFi primitives (lending, AMM, derivatives).
Reliable wallets and asset management tools.
Institutional-grade custody and security solutions.
Three years ago, technological limitations made sovereign liquidity difficult to achieve.
Now, the infrastructure makes sovereign liquidity possible.
Eighth, why Lorenzo?
Because the team understands the complete meaning of sovereign liquidity:
Sovereignty is not a function, but an architectural principle.
From the first day of product design,
Sovereignty is the core:
Asset sovereignty (the native nature of BTC).
Liquidity sovereignty (autonomous cross-chain choice).
Yield sovereignty (strategic autonomy).
Governance sovereignty (deep governance of BANK).
Security sovereignty (decentralized verification).
This design, based on principles,
Allowing Lorenzo to avoid later architectural debts from patches.
Ninth, the competitive dimensions of the sovereign liquidity era.
Future competition is no longer:
Which company has a higher APY by several points?
Which company supports more chains?
Which company is generous with airdrops?
But rather:
Which company truly respects the sovereignty of liquidity providers?
Which company offers the most complete strategic deployment tools?
Which company has established the most credible governance system?
Which company upholds the strictest security standards?
In this dimension,
Lorenzo has defined a new battlefield for competition.
Tenth, my prediction for the era of sovereign liquidity.
Phase One (Now-2025): Awakening of sovereign awareness.
Liquidity providers are starting to demand sovereign tools.
Protocols begin to adapt to sovereign liquidity standards.
BANK governance proves the feasibility of decentralized evolution.
Phase Two (2026-2027): Establishing sovereign standards.
Lorenzo's liquidity standards become industry benchmarks.
Sovereign liquidity providers become the most important DeFi participants.
Cross-chain protocols must respect the principles of sovereign liquidity.
Phase Three (2028+): Sovereign liquidity network.
Lorenzo evolves from protocol to infrastructure layer.
Sovereign liquidity flows freely across all chains.
Liquidity providers truly become strategic deployers in the multi-chain ecosystem.
Eleventh, my final point:
The timing of the emergence of Lorenzo Protocol,
Just at the turning point of the industry shifting from 'functional competition' to 'sovereignty respect'.
This is not a coincidence.
This is the result of the team's deep understanding of the direction of industry evolution.
We, as liquidity providers,
First opportunity:
Not only pursuing profits,
Pursuing sovereignty more;
Not only participating in DeFi,
To further shape DeFi;
Not only providing liquidity,
To have more liquidity sovereignty.
This is why I believe:
Lorenzo Protocol is not just a product.
It is the beginning of a new era.
And BANK,
Is our passport to participate in this new era.
The era of sovereign liquidity has arrived.
And we are already at its starting point.
