Brothers, today I want to talk to you about the Lorenzo protocol, which specifically upgrades the old systems of traditional finance to an on-chain version. It is not about letting your Bitcoin sit idle in your wallet; it is a platform that truly allows your assets to move and earn money for you. After spending so many years in the quantitative fund and DeFi yield circles, I have seen many projects, but few can truly play on-chain assets with high efficiency like Lorenzo.
This protocol has already established a foothold in the on-chain asset management field. It does not simply copy the operations of traditional finance but directly breaks apart and reconstructs that system into a crypto-native version. The core is their OTFs (on-chain trading funds); you put assets into a smart contract, it automatically runs strategies, and then gives you a token representing your share.
Imagine an OTF focused on quantitative trading: scanning market signals all day, capturing arbitrage opportunities, fully automated execution, with every step recorded on-chain—this level of transparency and automation is really rare in the space.
Speaking of vaults, this is the framework of the protocol.
Basic vaults focus on a single strategy, such as playing volatility, selling options to collect premiums, which can steadily earn money even in a sideways market.
More advanced combination vaults, mixing managed futures (trend following) and structured income products (layering derivatives for extra profit). The algorithm manages money fully automatically, reallocating between different vaults to maintain balance and flexibility—it's like a digital version of a pension fund, but you can customize it yourself.
What really excites me is their liquid Bitcoin staking. You stake BTC on supported chains to receive stBTC—this thing not only earns network rewards but also maintains liquidity to play around in DeFi. stBTC can also be integrated into OTFs or other yield strategies for layered returns. This year, the TVL broke 1 billion dollars, largely due to over 600 million BTC flowing in. This explosion started with the token launch in April 2025, and after hitting major exchanges in November, it took off directly.
The core of the entire system is the BANK token. It is not just a governance token; holders can vote on vault upgrades, new OTFs, and more. Regular users can provide liquidity and earn BANK, nurturing the ecosystem. There's also the more advanced veBANK model: lock BANK for a few months to several years to receive veBANK, your voting power and fee sharing will double. The longer you lock, the more you earn; this mechanism really keeps long-term players engaged, and it's no surprise that the BANK price multiplied several times in November.
Now, DeFi yield strategies are becoming increasingly complex, especially in the Binance ecosystem, where infrastructure-like protocols like Lorenzo's seem particularly crucial. Traders use OTFs for hedging and optimizing strategies. Developers stack yield products on vaults, making full use of multi-chain support. Regular players can finally engage with high-level strategies that were previously only accessible to institutions, especially as partners like World Liberty Financial start integrating real assets.
As the Bitcoin financial ecosystem evolves, these tools really can maximize capital efficiency. Overall, Lorenzo has brought the rigor of traditional finance into the open DeFi world, and BANK is the fuel that binds the entire ecosystem together.
By the way, which part are you most interested in? Is it the automation strategies of OTFs, the growth potential of BTC liquid staking, the yield combination gameplay of vaults, or the lock-up incentive mechanism like veBANK? Let's discuss your thoughts.
